SIPMM ACADEMY

DIPLOMA IN LOGISTIC MANAGEMENT

BUSINESS LOGISTIC MANAGEMENT

(BLM)

LECTURER: MR. TAN JUN AN

INDIVIDUAL ASSIGNMENT
NAME: SHALENI

DATE OF SUBMISSION:
28 JAN 2015

Content

Content missing?

1.0 Introduction

Canadian tires, is a leading Canadian automotive manufacturing company specializing in tires,

brake systems, automotive safety, powertrain and chassis components, tachygraphy, and other
parts for the automotive. It also owns an apparel retailer, a chain of automotive parts stores, and
some gasoline stations to support its retail operations. Canadian tires is one of the largest tires
company that operating 4 large distribution center two in Toronto, one in Montreal, and another
in Calgary. It operates about 470 retail outlet over the east, west, south and north Canada.
Canadian tires was founded in 1922, two Toronto brothers John and Alfred biles buy the
Hamilton tire and garage limited at the corner of Gerard and Hamilton streets in Toronto, in 1923
they move the company under the name of Canadian tire corporation, they serve the tires
industries more than 90 years which make them one of Canadas most powerful retailers and
they understand customer needs as well.

470 retail

Above graph show location of 470 retails outlet in Canada

They installed three common systems into their company which is not fully implementing. One
of the systems that have been implement is Warehouse management systems (WMS).A
warehouse management system, or WMS, is a key part of the supply chain and primarily aims to
control the movement and storage of materials within a warehouse and process the associated
transactions, including shipping, receiving, put away and picking. WMS is to provide a set of
computerized procedures to handle the receipt of stock and returns into a warehouse facility,
model and manage the logical representation of the physical storage facilities, manage the stock

within the facility and enable a seamless link to order processing and logistics management in
order to pick, pack and ship product out of the facility.
Second system is transport management system; this is a subset of supply chain management
software focused on transportation logistics. TMS system creation is to make the distribution of
products from manufacturers to consumers efficient and affordable.
The next systems that has implement is yard management systems is a software system designed
to oversee the movement of trucks and trailers in the yard of a manufacturing facility, warehouse,
or distribution center. YMS provides real-time information on the location of trailers in the yard
and allows yard employees to move trailers from staging to docks to fill orders in an efficient
manner.
The main expectations for Canadian Tire is to improved performance in over-the-road
transportation equipment utilization, driver productivity, and warehouse dock and door
utilization into three software (YMS, WMS, and TMS) which has been installed in company .
However, Canadian Tire also expect that these three software invested, able to benefit the
company and developing benchmark to measure initial and sustainable productivity
improvement.
2.0 current situations
Too short!

The current situation in Canadian tires is where these three systems are not efficiently installed
into the working environment due to this Canadian tires performance now at average stage; this
is lead to customer unsatisfied and unable to fulfill their requirement. The strategy plan that
implemented was not fully utilized, which cause delay in delivery and this show inefficiency of
productivity.
2.1 Objectives to be achieve
The goal of this research is to improve the three software system that has been installed in my
company which is not fully integrated into the Canadian tires environment. As a newly appointed
manager I has been ask to develop the KPI for this three systems, as my company expectation is
to improved performance in over the road transportation equipment utilization, driver
productivity and warehouse dock utilization.
3.0 How to achieve the objectives
We can achieve our company sustainable growth by using KPI into our software to perform
better. KPI stands for Key performance Indicator. It is a metric which is used to determine how
you are performing against your business objectives. However in order to make this happen the
metric must hugely impact the business bottom-line. This is possible only when the metric has
the ability to provide recommendation for action which can a huge impact on the business
bottom-line.

Canadian tires does not succefully implement WMS in working environment due to KPI not
measured and integrated into the software. Canadian tires do not measure the on space utilization
and order fulfillment error, sending the wrong package or items to a customer drive up costs and
affects credibility in company. As manager of Canada tires I prefer the warehouse to redesign
functionality allows us to customize workflow and picking logic to ensure that inventory is
allocated to the correct location within each facility. As a results we are able to generate and
share the reports to our various branch on location, inventory levels and company movements in
real time and to ensure that inventory is correctly logged and easily located when the time
comes for it to move. This will allows the warehouse management systems establishes correct
bin slotting to maximize warehouse space and account for seasonal inventory variance. We need
to improve storage system the cost of a warehouse building can be very expensive. Therefore, it
is important to make the best use of space when planning and operating a warehouse. Receipt
and put away solution effectively moves goods from receiving dock to warehouse and into the
right location, this will creating an optimized orders picking environment for warehouse.
Warehouse management systems can eliminate receiving errors by matching the receipt thru
barcoding and original purchase orders details.
We can assign multiple employees to the receipt and put away of large inbound shipment to
ensure a high efficient receiving while eliminating transcription errors. We can install systems
offer pick-to-light (light-picking) and pick-to-voice (voice-picking) technology to aid more
sophisticated warehouse environments. Assemble a team of people capable who will decide what
is company needed from WMS and what functionalities must have. Appoint a project leader and
define each person role, responsibilities and their level of involvement in terms of time and
decision making during this process. Ensure that all participations are able to make available
time and resources to ensure the success of the project.
Transportation management systems is an important systems in a warehouse or operation
department,80% of successful of deliver depends on transportation systems. While Im doing my
research on this three software, happen to know that transportation loading plan was not fully
utilized in Canadian tire this cause inefficiency of transport planning. The plan was not execute
probably as customer expectations. Many TMS systems have rigid workflow design, which is not
easily adapted to realities of many companies. Working with TMS, the company can set out to
create a sustainable advantage in transportation regardless of market conditions, while keeping
cost and services as top priorities.
Analyzing Canadian tire overall shipments, there was potential to improve in transportation
mode. Canadian Tire needs to implement TMS systems that could not only find the static routes
but also integrate with daily execution and payment activities to ensure superior execution on a
larger volume of transactions. The tools to develop the shipment volume, historical or forecasted
and performs three level of aggregation: by geography, by time bucket and by commodity. Every
shipments assigned to delivery must be tagged with a unique route identifier which is carried in
the systems and also communicated to the carrier. As manager we need to monitor the orders and

shipment daily as total number of orders and average volume order per month. By improving the
effiecny of the transportation, Canadian tires able to perform well in 2015, resulting in
significant and well known company all over the world.
Planning

Execution

Competitive Bid

Payment

Benchmark
Analytics

Above chart is planning systems in transportation management system.

Last systems that implement in my company is yard management systems, this is a critical aspect
in supply chain management to execute with a clear understanding of all the operations and
functions of yard it is possible to improve the performance. In order to have successful in yard
management system we need to identify the problem in Canadian tire. The length load
sequencing process which is using are to long which lead to delay in unloading and load the
goods. There are a multiple moves due to ineffective communication and also lack of
information.
We need to identify trailers by their passive tags and record and report each trailers position in a
real time since trailers remain immobile. We are heavily invested on tracing and tracking of
transportation assets on the road to improve their visibility and hence monitor our supply chain
management as well. Any error or delays due to inefficient management during this static period
gets amplified and reflects heavily on the performance of the supply chain. This is where the
need of a well-designed and well maintained yard management system steps in.We always needs
to measure the space utilization and driver performance in order that have a successful
performance.According to a recent survey by Aberdeen Group almost 60% of the companies still
employ manual practices for their yard management such practices lead to lack of visibility and
inefficient performance. Yard management systems are stepping stone to achieve the real time
visibility of the entire warehouse which is creating a lean and successful business.

4.0 Conclusion
As newly appointed manager, I believe that implement of three software systems with
successfully can be more profitable and advantage for the company. Moreover we can improve
performance in over-the-road transportation equipment utilization, driver productivity, and
warehouse dock and door utilization by synchronization and visibility across functions which is
boosting for the company growth.

Warehouse management systems

** Before
50%
** After
89%

90%

Transport management systems

** Before
65%
** After
90%

95%

Yard management systems

** Before
40%
** After
85%

If the project fully applies in the supply chain management, the percentage of each software
metric will get improvement. I believe that percentage of order and delivery can be improved, as
above graph which shows the percentage of before and after the three software systems fully
utilized.

Reference
Supply Chain Management
By Gerhard F. Knolmayer, Peter Mertens, Alexander
Zeierhttps://books.google.com.sg/books?isbn=3540669523
Logistics Management for International Business: Text and Cases
L By S. SUDALAIMUTHU, S. ANTHONY RAJ
https://books.google.com.sg/books?isbn=8120337921
Transport Management Systems and Records
Leslie Robinson
Publisher Gower Press, 1971
Digitized 25 Aug 2010
Container Terminals and Cargo Systems: Design, Operations Management,
and systems.
Kap Hwan Kim, Hans-Otto Gnthe
https://books.google.com.sg/books?isbn=3540495509By