Canadian Tire Corporation partnered with Century just over 13 years ago. Our relationship is a model example of continuous process improvement achieved through open dialog and long-term, top-down commitment to supply chain excellence.
One of Canadian Tire’s many goals was to manage offshore vendors in a similar manner to its domestic vendors. The problem was a lack of visibility. Canadian Tire and Century designed vendor management analytics that would provide them the information necessary to manage, and when necessary, fine vendors to bring about service level improvement.
In VMS®, Canadian Tire tracks key metrics for each vendor. Measurement data includes booking date, delivery date, delivered quantity and document submission. VMS® collects the data at a PO level and presents that information to Canadian Tire at a vendor level. Our customer monitors each vendor’s service level on a rolling 13 week basis. Supplier service levels are measured in three areas:
- On time booking
- On time delivery
- On time documentation
Vendors are fined for each late event, and fined again if their 13 week rolling service level drops below 90%. Canadian Tire makes the final decision about whether to assess, mitigate or waive each chargeback. The vendors have complete transparency to their service and performance details in VMS®.
Thanks to this program, Canadian Tire’s offshore vendor service levels have improved to 97.42%.