SUP 2053 Supply Chain Technology

Canadian Tire is one of Canada’s most iconic and successful retailers in operation since 1922. The company’s retail business involves consumer products in the automotive, hardware, sports, leisure and housewares sectors. It also operates other business segments including Mark's, FGL Sports, PartSource and Canadian operations of Party City.

In the mid-1990s, the company made a decision to fundamentally reengineer their end-to-end supply chain operations to improve service to their stores & customers and optimize operational costs. The company invested $300 million into a 7-year project called CustomerLink which involved redesigning their supply chain distribution network, building new regional distribution centers in Calgary and Montreal (to add to the two existing ones in Toronto) and integrating regional forecasting & replenishment implementation using the Manugistics supply chain planning software. Canadian Tire is recognized as one of the first retail companies in the industry to incorporate manufacturing concept to their forecasting & replenishment planning processes.

The Case Study attached to this note describes the supply chain operational capability Canadian Tire implemented with the Manugistics supply chain planning software.

1. What was Canadian Tire’s primary supply chain operational issue that needed to be addressed? (2 marks)
2. Explain in details how the supply chain planning software strategically enabled Canadian Tire to improve their supply chain planning capability involving suppliers? (2 marks)
3. Identify two other key departments within Canadian Tire’s supply chain operations that benefitted from the implementation of the Manugistics supply chain planning software. Elaborate on the operational benefits gained by both departments. (3 marks)
4. The Manugistics supply-chain planning software was critical to Canadian Tire’s business. From a long-term strategic perspective, provide your own analysis on how this implementation contributed towards Canadian Tire’s overall organizational success? (3 marks)