In this article, learn about:
Canadian Tire’s vendor requirements for documentation
Purchase order, packaging, labeling, and palletizing expectations for Canadian Tire vendors
Types of deductions, and how to avoid and dispute them
Canadian Tire was founded in 1922 as a tire retailer, but has since expanded to include gas stations, as well as selling sports equipment and even clothing. Headquartered in Toronto, Ontario, Canadian Tire has approximately 1,700 stores and gas stations across Canada.
For both Canadian and U.S. vendors, Canadian Tire provides a detailed Vendor Guide that outlines its expectations for vendor compliance. For vendors wanting to ensure that they avoid fines and get paid, this article will help by providing an overview of Canadian Tire’s vendor requirements, from packaging and palletizing standards to ASN timing and accuracy.
Canadian Tire Vendor Expectations
Canadian Tire tracks vendor compliance through three main categories:
Request for Pick-Up or Appointment (RPA)
Advance Ship Notice (ASN)
Receipt Fill Rate
RPAs and ASNs are expected to strictly adhere to Canadian Tire standards, both for accuracy and timeliness.
Receipt Fill Rate is the standard by which Canadian Tire measures shipments being delivered on-time and in-full. It is calculated by dividing the expected PO quantity by the PO quantity delivered on time.
The minimum requirements for RPA and ASN compliance is 100%. The minimum requirement for Receipt Fill Rate requirements is 97%.
A vendor’s primary point of contact for vendor compliance questions is through email to their Replenishment Analyst (RA).
Documentation and EDI
Canadian Tire utilizes Electronic Data Interchange (EDI) for the transmission and receipt of all documentation between itself and its vendors. Canadian Tire requires that all its vendors use EDI as well, submitting all documentation through WebForms.
All documentation is expected to be sent within the Dynamic Window, which is defined as the first 72 hours after the completion of the Purchase Order (PO)
As laid out in its vendor guide, Canadian Tire outlines requirements and expectations for the following documentation:
EDI 850: Purchase Order (PO)
Physical/hard copies of POs are not considered official by Canadian Tire and will not be accepted. Only electronic POs are permitted.
POs may be created by different systems—such as the Automated Order Management (AOM) or Legacy system. The PO number will distinguish which system created the PO:
For POs created by the Legacy system, the first 4 digits of the PO number will also be the first 4 digits of the vendor number.
For POs created by AOM, the 8-digit PO number will not include the vendor number.
EDI 860: PO Change (POC)
PO changes must be communicated to the vendors' Replenishment Analyst. This communication must fall within the Dynamic Window.
If a POC is requested within the correct timeframe, the vendor will not be penalized or receive a fine.
Reason for the PO change, in detail, must be included with the request.
Only changes with the following reasons will be accepted by Canadian Tire:
Lead time violations
Severe changes or fluctuations in forecast
Severe natural disasters, such as earthquakes, tornadoes, floods, etc.
PO change requests submitted outside of the Dynamic Window will result in a fine, particularly if the PO change negatively impacts the vendor’s fill rate.
Ideally, issues with order and PO timing should be communicated prior to sending the PO.
EDI 830: Supplier Forecast
The Supplier Forecast, or Supplier/Product Forecast, is updated and sent by Canadian Tire each Friday and includes product forecast information for upcoming planned orders.
It is important for vendors to review this weekly report thoroughly and be prepared to communicate with their Replenishment Analyst should the amount listed on the PO be significantly more than what is forecasted.
Request for Pick-Up or Appointment Response (RPA)
The vendor is required to send an RPA to Canadian Tire (electronically) in order to request approval to ship product.
The RPA can be sent up to 30 days ahead of the PO due date, but no less than 7 days before the PO due date. On the day the RPA is due, it must be submitted by 4:30 PM.
The vendor is responsible for taking holidays and weekend days into account when submitting the RPA.
Freezable and non-freezable products require separate RPAs due to different loading processes.
For shipments that have multiple POs, only 1 RPA is necessary per trailer.
RPAs must include complete and accurate shipping information, such as quantity and weight, etc.
Once Canadian Tire receives and approves the RPA, they will send an RPA Response. The RPA Response provides the vendor with a shipment number, which is required for shipping.
EDI 856: Advance Ship Notice (ASN)
The ASN must be submitted electronically as soon as possible after the trailer has been loaded and left the vendor facility.
The ASN must arrive before the shipment arrives at the Canadian Tire facility.
Vendors may need to submit the ASN early if the trip from their facility to Canadian Tire’s facility is longer than a 4-hour drive.
Canadian Tire’s recommendation is that vendors send the ASN (electronically) the day before the scheduled pick-up.
Multiple POs must not be combined onto a single ASN.
All ASNs must be accurate, including all the required information, and must be sent and received on time.
EDI 211: Bill of Lading (BOL)
A BOL is required to accompany all shipments.
The BOL must include expiration dates for perishable goods.
For shipments with multiple POs and/or BOLs, the vendor must also include a master BOL.
The BOL number must match the number on the ASN.
The shipment number must be clearly stated on the BOL.
The trip number must be included on the master BOL.
Packing Slip
The packing slip must be included with the rest of the paperwork provided to the driver, and an additional copy must be attached to the pallet. The packing slip must include the following information:
Packing slip number
PO number
Trailer number
Shipment number
Vendor part number
Description of the product
Product number
Quantity of shipped units
Any customs information as necessary
Quantity of shipped master cartons
Each individual weight for every part number
Shipping Requirements
The first step for vendors in ensuring that their products ship in a manner compliant with Canadian Tire’s expectations, is to check that all SKUs (Stock Keeping Units) and item data are correct in the system. Canadian Tire stores all SKU, packaging information, and data in the Data Vault. It is imperative that vendors are comfortable with using this system to ensure that all data for their products is inputted accurately. Vendors can reach out to Canadian Tire with questions about the Data Vault at VendorSystemsSupport@cantire.com.
Most vendors ship product through Canadian Tire’s DC (distribution center) system. However, for vendors who bypass the DC and ship Direct, it is important to make sure that all products are still packaged and labeled according to Canadian Tire’s standards. Direct shipments must not be mixed with DC shipments.
For Canadian Tire vendors, there are certain quality expectations for cartons, packaging, UPC labels, barcodes, and pallets. These expectations must be followed in order for a vendor to stay compliant and avoid fines. The vendor must ensure that all shipments accurately match all submitted documentation, and that the quantities of cartons, etc. matches what the vendor submitted on the Product Quotation Form.
Carton Requirements
Cartons, by Canadian Tire’s definition in its vendor guide, fall into 2 categories: self-contained product units or external packaging that further encases a product, or “consumer unit.”
All cartons must be packed in a way that allows maximum efficiency at both an associate store and DC.
Canadian Tire’s official policy is that cartons should never be shipped if only partially filled.
Canadian Tire utilizes a conveyer system in its DCs. All cartons and master cartons must meet certain standards to not cause disruption to the conveyer system.
All cartons must be sturdy and able to withstand going through several rounds of handling.
Labeling and Barcode Requirements
Universal Product Codes (UPC) are the standard barcodes used at Canadian Tire for product scanning and tracking. All products, whether received through a Canadian Tire DC, or directly to a store, must have a scannable 12- or 13-digit UPC barcode on the product and/or outer packaging.
Additionally, all UPC labels must adhere to the following standards and expectations:
For promotional items, a separate, semi-permanent label must be placed over the UPC label, and must be scannable.
All UPC labels must be tamper-proof.
Each product must have its own UPC label, including bulk products.
A UPC label must not be magnified more than 120% of the standard UPC size.
Canadian Tire uses its own discretion to determine which products require RF (Radio Frequency) tags. The vendor will be notified if their product requires an RF tag via the Request for Quotation form.
Pallet Requirements
Pallets must adhere to the standard 40” by 48” specifications.
Products packed on a pallet must fit within those specifications and must not overhang.
Canadian Tire vendors must use CHEP or PECO approved pallets and must have accounts with one or both of those organizations.
All palletized products are required to be shrink/stretch wrapped. The stretch wrap must adhere to the following requirements:
Cover all four corners of the palletized products.
Stretch wrap must be clear and matte.
The top of the palletized load must have two full “rotations” of stretch wrap.
The bottom of the palletized load must have three full “rotations” of stretch wrap.
The stretch wrap must overlap 50%.
Acceptable materials for stretch wrap are LLDPE (linear low-density polyethylene) and polyethylene.
Polyvinyl chloride (PVC) stretch wrap is not allowed and cannot be accepted at Canadian Tire distribution centers.
Pallets must be sturdy and undamaged.
Ideally, products should be palletized by SKU in a single PO shipment. However, for shipments with multiple POs, the products must be palletized by PO rather than SKU.
For pallet-related questions, vendors should reach out to Canadian Tire’s Pallet Coordinator at dcpalletcoordinator@cantire.com.
Canadian Tire Deductions and How to Dispute Them
Should a vendor fail to follow all requirements and expectations for shipping and documentation, Canadian Tire will email the vendor with a notice of a fine for the infraction.
Types and Amounts of Deductions
ASNs not submitted, submitted late, or ASNs received after the shipment: $200 (CAD) or $150 (USD)/PO or shipment.
PO with a late, missing, or inaccurate ASN: $200 (CAD) or $150 (USD)
Incorrect UPC labels/barcodes: $100/hour for reworking the label. The minimum fine is $200 and can be up to $1,000.
Shipping delays requiring Canadian Tire to “rework” the process: $100/hour, with a minimum fine of $200.
Late RPAs: $200 (CAD) or $150 (USD) per late RPA per PO.
Shipments not received to the DC on-time and/or units not matching the expected order: 2% of the value of the PO of late/missing order quantity. Fines of less than $25 are waived under this category.
Failure to send, or late submission of, EDI 855 document (PO acknowledgement): $25 per late or missing EDI 855.
How to Dispute
After receiving a notice from Canadian Tire of the fine, the vendor has 3 months to submit a dispute claim. In order to submit a dispute claim, the vendor must include all proof documentation that is pertinent to both the fine and the reasoning for disputing it, as well as a detailed explanation of the reason for the dispute.
The claim is submitted when the vendor emails this information to the supplier performance team at sp.offshore@cantire.com
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