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THE PROBLEM
Canadian Tire desired to implement a new business strategy that would save millions in transportation costs and enable better service to customers. This change required a significant increase in SKUs, inventory, and outbound volume in several regional distribution centers (DCs) that are near capacity.
The varied nature of the SKU assortment—including tires, large products, and small items—and the presence of a third-party logistics company operating the building presented unique challenges with storage and picking solutions.
KEY QUESTIONS
- How can the distribution centers meet the required filling location, inventory, and volume increases?
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What is the best material handling solution and technologies to apply to a complicated, seasonal, well-equipped existing operation?
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What is the best implementation plan, given the existing operation runs 20 hours a day, every day?
THE SOLUTION
AutoStore Goods-to-Person (GtP) system that eliminated walking from the order fulfillment process.
Very Narrow Aisle (VNA) racking to create enough density within the building for inventory requirements.
A hyper-detailed phasing plan to carefully retrofit the operation while minimizing business risk.
KEY RESULTS & INSIGHTS
- Increased SKU capacity by 50% across each facility.
- Accommodated a 36% outbound volume increase.
- Avoided $2M in labor costs from picking with Goods-to-Person (GtP).
- Realized $50M in annual transportation cost savings.
PROJECT PHOTOS
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