The north star of retail excellence

The challenge

Canadian Tire is one of Canada’s most trusted and iconic companies, offering an unparalleled assortment of products tailored for life in Canada. As the #1 retail brand in Canada, the company owns and operates more than 1,700 retail locations across multiple banners.

Canadian Tire’s purpose is to “Make Life in Canada Better.” Achieving this goal involves ensuring the right quantities of the right products reach each location in a cost-effective manner while meeting unique customer needs.

Over the past several years, Canadian Tire has prioritized strengthening its supply chain resilience to handle disruptions and meet evolving customer demands. As part of this initiative, the company launched a “Better Connected” strategy with a planned $250 million investment to enhance customer experiences, deepen customer connections and foster long-term growth.

“Our guiding principle is to meet customers where they are with flexible fulfillment options tailored to customer preferences. Some customers prefer a seamless in-store experience, aided by digital wayfinding and easy checkout processes. Others opt for buy online, pick up in-store or direct-to-store eCommerce. Collaborating closely with our vendors through a long-term strategic partnership with SPS Commerce has been instrumental in navigating these complexities.”

Jeff Szabo, VP of Supply Chain Planning

The solution

In 1999, Canadian Tire forged a strategic partnership with SPS Commerce, driven by the need to support various omnichannel order fulfillment models with vendors. As Canadian Tire grew through strategic acquisitions, maintaining agility and flexibility in vendor relationships became paramount. The SPS partnership has been crucial in transitioning vendors to electronic trading platforms, including EDI.

SPS currently supports over 2,000 unique vendors across the Canadian Tire banners while onboarding thousands more over the years to facilitate the successful flow of millions of business transactions annually. Each transaction provides a critical piece of information that ensures Canadian Tire can successfully do business with all types of suppliers and manage and move inventory to end destinations as quickly as possible.

“Our partnership with SPS supports our goal to meet customers on their terms, offering varied fulfillment options based on their preferences. SPS plays a key role in our success by helping our teams align our vendor requirements with customer needs, simplify new vendor onboarding and introduce new processes and fulfillment requirements.”

Nicole Chen, AVP, Order and Information Management

The results

Canadian Tire leverages critical supply chain data to improve forecasting accuracy, plan inbound and outbound logistics, and speed up product delivery to stores and customers. By prioritizing seasonally relevant products and communicating with vendors about incoming inventory, they ensure timely fulfillment and meet evolving customer demands.

The longstanding partnership with SPS highlights a mutual commitment to growth and collaboration. Canadian Tire’s revenue grew from $5.2 billion in 2000, encompassing 650 stores and gas stations, to $17.9 billion in 2022 across nearly 1,700 locations. Over the past two decades, the company’s expansion has also included the integration of renowned banners such as Sport Chek, Mark’s, Pro Hockey Life, Helly Hanson and Party City.

Throughout this growth trajectory, SPS has been more than just a technology vendor but rather a strategic partner. The SPS team works with the Canadian Tire vendor community to consistently deliver valuable insights that inform planning and distribution efforts.