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Packaging Standards v1.5


Canadian Tire Corporation Limited Packaging Standards
April 2006

”We start with customers; so they start with us”

? Canadian Tire Corporation 2005. All rights reserved.

Contents

TABLE OF CONTENTS
1 2 3 4 5 6 7 8 9 9.1 9.1.1 9.2 9.2.1 10 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 Packaging Standards Introduction .................................................................................. 1 Corrugated Fibreboard Cartons ....................................................................................... 1 Inserts and Padding ....................................................................................................... 10 Protective Wrapping ...................................................................................................... 13 Shrink Wrap ................................................................................................................... 13 Stretch Wrap .................................................................................................................. 14 Sealing Cartons .............................................................................................................. 14 Importance of Carton and Master-Carton Quantities and Dimensions ......................... 14 Conveyable and Large Bulk Product .............................................................................. 16 Conveyable Product ............................................................................................................. 16 Conveyable Dimensions ................................................................................................. 16 Large Bulk Product .............................................................................................................. 17 Examples of Large Bulk Product ..................................................................................... 17 Consumer Unit Packaging .............................................................................................. 18 Consumer Unit Definition ..................................................................................................... 18 CTR Product Number ........................................................................................................... 18 Universal Product Codes (UPCs) ........................................................................................... 18 UPC Compliance .................................................................................................................. 19 Physical Shipment Quality/Rework ........................................................................................ 19 Product Card/Packaging Hanging Hole Specification (Butterfly Hole) ....................................... 19 Fine Process and Dispute Process ......................................................................................... 20 Bilingual Packaging Requirements ......................................................................................... 20 Charter of the French Language ........................................................................................... 21

Appendix A – Glossary ............................................................................................................. 23 Appendix B – Resources .......................................................................................................... 26 Appendix C – References ......................................................................................................... 27

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Contents

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1

PACKAGING STANDARDS INTRODUCTION

This Packaging Standards document provides information about standard quality packaging for products at Canadian Tire Corporation (CTC). It gives your company the information you need, to ensure that your packaging meets the standards and specifications required by CTC. Our goal is to ensure that product moves from your facility to our retail stores in the best possible condition, through safe and efficient handling. We want to ensure that the consumer package is protected during the various types of handling required for product flow. For CTC, our conveyor system provides the most efficient method of handling. For conveyable products, your shippable packaging must conform to our specifications. By ensuring your packaging meets the requirements outlined in our packaging standards, you enhance product appearance and increase our customers' satisfaction. For a listing of our detailed conveyor requirements, see section 9 Conveyable and Large Bulk Product. The benefits to you are not only that your product arrives at our retail stores in the best possible condition for sale, but also that you have fewer damaged products returned to you. The information contained in this document sets out standards for packaging. As a supplier to Canadian Tire Corporation, we expect you, at a minimum, to ensure that your packaging meets the standards outlined in this document at the masterpack or shipping carton level of packaging. Our research included consultation with the following organizations: ? Canadian General Standards Board ? Railway Association of Canada ? ASTM (American Standards and Testing for Material) ? TAPPI (Technical Association of the Pulp and Paper Industry) ? Independent corrugate suppliers and our internal Quality Engineering Lab. For these associations' websites, as well as further general information about corrugate, packaging standards or testing, see Appendix B – Resources and Appendix C – References, at the end of the guide. For questions regarding this document, email Pkg@cantire.com or telephone 416-480-3374. Thank you for your continued support of Canadian Tire programs.

2

CORRUGATED FIBREBOARD CARTONS

Regardless of the material handling equipment to be used, you must ensure that cartons and boxes (specifically, shipper cartons or master cartons) conform to the rules listed below. If you have any concerns regarding your packaging material, please contact your corrugate supplier. 1. You must use wood pulp based linerboard. 2. Cartons made with fibre mixes containing wheat straw or rice straw are not acceptable. 3. The corrugated cardboard you use must be recyclable. 4. Cartons must be made with single wall or double wall corrugate, with an A, B, C, E, or F sized flute. See Figure 1.

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A

C

B

E

F

? ?

“A” is the largest flute size. “B” is the 3rd largest flute size. “C” was created to be an “in between” size for “A” and “B”, and is the most common. “E” & “F” are the smallest flutes. The numbers in the diagram refer to the size of the flute and its height in inches.

1/4 "

3/16 "

3/32 "

3/64 "

1/32 "

?

? ?

Figure 1: Flute Sizes

5.

We recommend double walled cartons with an A–sized flute for heavy duty shipping (such as barbeques). Please refer to your corrugate supplier for appropriate packaging. See Figure 2.

Single Wall

Double Wall

Figure 2: Single Wall and Double Wall Flutes

6.

7.

8. 9.

The combination of liner and flute medium must meet the performance requirements for the weight and dimensions of the product, verified by an Edge Crush Test (ECT). For Technical Specifications, see step 10, below. For further details, contact your corrugate supplier. Do not use plastic or metal strapping – it catches on the rollers in our conveyor systems, and damages both cartons and equipment. Strapping may only be used on packaging whose dimensions exceed 36 inches x 24 inches x 24 inches and 50lbs. Pack products that can be damaged by excessive humidity in cartons that have a water and moisture-resistant coating. All shipping cartons must be stamped to indicate that the corrugate has been tested. The two most common tests of corrugate strength are the Edge Crush Test (ECT) and the Mullen Test. Although either is acceptable, we prefer the Edge Crush Test. Figures 3 and 4 show examples of the two types of tests marked by the "Box Manufacturer's Certificate". The certificate should identify the test and the box manufacturer.

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(BOX MANUFACTURER)

BOX CERTIFICATE

THIS SINGLEWALL BOX MEETS ALL CONSTRUCTION REQUIREMENTS OF APPLICABLE FREIGHT CLASSIFICATION ____________________________________________________________ EDGE CRUSH 32

TEST (ECT) LBS/IN ____________________________________________________________ SIZE LIMIT 75 INCHES _________________________________________________________ GROSS WT LT 65 LBS ______________________________________________________

The Edge Crush Test (ECT) is used to determine the stacking strength of a carton before the edges crush under the weight of the other boxes stacked on the top.

(CITY & PROVINCE) Figure 3: Box Manufacturer Certificate - Edge Crush Test

(BOX MANUFACTURER)

BOX CERTIFICATE
THIS SINGLEWALL BOX MEETS ALL CONSTRUCTION REQUIREMENTS OF APPLICABLE FREIGHT CLASSIFICATION ________________________________________________________________ _ 200 BURSTING LBS PER TEST SQ INCH ________________________________________________________________ _ 84 MIN COMB LBS PER WT FACINGS M SQ FT ________________________________________________________________ _ 75 SIZE LIMIT INCHES _____________________________________________________________ GROSS 65 WT LT LBS __________________________________________________

The Mullen Test is used to determine compression strength and the bursting threshold of boxes.

(CITY & PROVINCE)

Figure 4: Box Manufacturer’s Certificate – Mullen/Burst Test

Technical Specifications

10. The mandatory minimum technical specifications are listed below. Your packaging must exceed one or both of the strength tests indicated below. We may handle your product in any of the following ways: ? automated conveyor systems ? using clamp trucks (3,500 lbs maximum pressure) ? stacking and double-stacking with pallets ? shrink-wrapping on pallets ? manual handling ? floor loading in trailers

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Maximum Weight of a Box (lbs)

Maximum Outside Dimensions, Length, Width, Depth, Height Added (inches)

Minimum Burst Test (Mullen Test) (lbs. per sq. inch)

Minimum Edge Crush Test (ECT) (lbs. per in. width)

Single Wall Corrugated Fibreboard Boxes 20 35 50 65 80 95 120 40 50 60 75 85 95 105 125 150 175 200 250 275 350 23 26 29 32 40 44 55

Double Wall Corrugated Fibreboard Boxes 80 100 120 140 160 180 Maximum Weight of a Box (lbs) 85 95 105 110 115 120 Maximum Outside Dimensions, Length, Width, Depth, Height Added (inches) 110 115 120 125 200 275 350 400 500 600 Minimum Puncture Test, Triple Wall Board (in oz. Per in. of tear) 700 900 1100 1300 42 48 51 61 71 82 Minimum Edge Crush Test (ECT) (lbs. per in. width)

Triple Wall Corrugated Fibreboard Boxes

240 260 280 300 Example:

67 80 90 112

10 inches 12 inches 18 inches Carton dimensions 18" Width +12" Depth +10" Height = 40; Carton weight 20 lbs

The carton must meet minimum burst test strength of 125 lbs or minimum ECT of 23 lbs. For specific international standards documentation about packaging and testing methods, see Appendix C – References, below.

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Corrugate Carton Stacking Performance (Dynamic Compression Testing) Stacking Performance:

Many factors are taken into consideration when determining the optimum stacking performance of corrugate packaging. During the trip from supplier to consumer, products can be expected to pass through multiple points of stacking, handling and variable humidity conditions. All these must be considered when determining the appropriate performance for your product packaging. In addition to the maximum dimensions and ECT outlined in the Technical Specifications, Supplier packaging needs to withstand the appropriate level of dynamic compression. Here is a simple formula to determine the appropriate level of Dynamic Compression that your package must withstand: 1. Total Weight of Carton (including Merchandise) 2. Stacking Height (101”/Product Height)-1 3. Safety Factor of 4 (to account for time in transit and variable shipping conditions) Total Dynamic Compression equals 1 X 2 X 3 Example: 1. Total Weight of Carton 2. Stacking Height (101”/12)-1 3. Safety Factor

50lbs 7 4

Total Dynamic Compression = 50lbs X 7 X 4 = 1,400 lbs
Compression Tests The box shall withstand a compressive force as per below: Simulate Clamp Trucks – of products under 150 lbs.

Compressive Force = stack height number x carton weight x safety factor of 4 ? Both sides shall be compressed unless specific clamping directions are specified on the packaging, clamp truck grips shall not extend beyond 53” in length ? If indicated, the clamp direction shall be on the largest face dimension or where the flute direction of the corrugate is parallel to the clamp direction, clamp truck grips shall not extend beyond 53” in length ? The clamp direction shall be on the smallest face/dimension if length or depth of the box is more than 53” long (e.g. bicycles) ? Dimensions of the carton shall be designed within the clamp dimensions of 54” in depth and 48” in height, the clamps open up to 77” wide and have a maximum compression load of 3,200 lbf 24” from the back of the grips. There shall be no damage to the product after this test
Simulate Clamp Trucks – of products over 150 lbs.

The box shall withstand a compressive force between 3,200 lbs to 3,500 lbs on both sides, unless specific clamping directions are specified on the packaging, clamp truck grips shall not extend beyond 53” in length ? If indicated, the clamp direction shall be on the largest face dimension or where the flute direction of the corrugate is parallel to the clamp direction, clamp truck grips shall not extend beyond 53” in length ? The clamp direction shall be on the smallest face/dimension if length or depth of the box is more than 53” long ? Dimensions of the carton shall be designed within the clamp dimensions of 54” in depth and 48” in height, the clamps open up to 77” wide and have a maximum compression load of 3,200 lbf 24” from the back of the grips. There shall be no damage to the product after this test

?

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Notes: Most high volume or large items are moved by clamp trucks at CTC, below are operational pictures of how a clamp truck works

Clamp Truck

Clamp Truck with products

Clamp Truck lifts products

CTC Drop Test (master carton or packaging)

Far end as six 6 Top as one 1

Left side as four 4

Right side as two 2

Near end as five 5

Bottom as three 3

Manufacturer’s Joint

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Drop or impact the packaged product according to following sequence: a. Test the most fragile corner, if not known test the bottom 2-3-5 corner (Manufacturer’s Joint) b. The shortest edge radiating from the corner tested c. The next longest edge from the corner tested d. The longest edge radiating from the corner tested e. Flat on one of the smallest faces f. Flat on opposite small face g. Flat on one of the medium faces h. Flat on opposite medium face i. Flat on one of the largest faces j. Flat on opposite large face The master carton or packaging/casing shall remain fully enclosed after the drop test with no excessive openings for product or components to dislodge (i.e. holes, flaps opening, ripping/tearing, etc.) and damage to the product. The carton or packaging itself can sustain buckling or denting.
Equal to or greater than (lb) 0 21 41 61 100 But less than (lb) 21 41 61 100 150 Free Fall Drop Height (inches) 30 24 18 12 8

Carton Markings

Product must be packed in cartons marked with the appropriate handling symbols. See the Glossary of Symbols, below. (If your product requires any handling not represented by these symbols, please ensure the carton is marked accordingly.)
Glossary of Symbols Symbol Description This Way Up Comments When handling product, arrows must always point up.

Do Not Tip / Top Heavy

Product is heavier at top, as indicated by arrows.

Stacking Limitation

Shows maximum stacking load, in units. (In this example, four.)

Keep Dry

Protect from excessive humidity when handling and storing.

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Fragile/Handle with Care

Product is easy to break. Handle carefully and do not tip.

Clamp Here

Product may be clamped only on sides indicated by arrows.

Protect from Cold or Freezing

Product must not freeze, as freezing will cause damage.

Protect from Heat

Product must not be heated, as heating will cause damage.

Do not use Forklift Truck here

Must be applied to side of packaging where a forklift cannot be used.

No Hand Truck here

Must be applied to packaging where a hand truck cannot be used.

11. You can use regular slotted containers/cartons (RSCs) for most products. These are preferred by CTC. See Figure 5.

Figure 5: Regular Slotted Container

12. Do not use "1–2–3" bottom containers. The bottom of the container is not fully sealed, and product may break through. See Figure 6.

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Figure 6: 123 Bottom Container with Tuck Top

13. Containers with covers should be avoided. If they must be used due to the nature of the product, the seams around the top of the container must be taped (excluding footwear). See Figure 7.

Figure 7: Container with Cover

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14. Trays with Locking Covers should be avoided if possible. If they must be used, the side and front flaps must be taped. See Figure 8.

Figure 8: Roll End Tray with Locking Cover

15. Joints must be taped, stitched or glued. Joints that are glued must be sealed with water-resistant adhesive. Glued containers must dry properly, so that damage does not occur when the product is being clamped. 16. Do not staple the joints. Joints that are held together only by staples may shift during the handling process. The holes left by the staples may enlarge, further reducing the strength of the carton. If staples are used, the joints must also be glued, to prevent them from sliding. 17. We recommend using a rectangular or square container or carton for shipping product at the mastercarton or shipper carton level of packaging, to ensure efficient flow of product. Do not use round or irregularly shaped containers or cartons at this level of packaging.

3

INSERTS AND PADDING

Canadian Tire Corporation flows products of many shapes and sizes through our Distribution Centres. Many containers require packaging inserts or padding to protect the product inside, as well as to support the carton for conveyability and material handling purposes (see Figures 10 – 14). Below are some guidelines for protective product packaging, and for adding strength and support to stackable cartons. 1. Products that do not fully utilize the space in the carton must be packed with inserts, to limit movement. Space above or around the product in the carton is not acceptable. 2. Inserts or padding used to protect products can be made of the following: cardboard, styrofoam, un-faced corrugated, single-faced corrugated.

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These tubes can be used as a sleeve to protect individual items, such as glassware, or any other fragile product, such as a glass vase.

Figure 10: Inserts - Tubes

This form is usually die cut, and is used to support irregular or awkward products, such as a bicycle handlebar, from above or below.

Figure 11: Inserts - Inner Packaging Forms

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Nesting boards are used to separate and support fragile, thin and narrow products, such as picture frames.

Figure 12: Nesting Boards

These partitions are used mainly for glassware and other fragile items, such as candles, that need to be individually protected.

Figure 13: Inserts - Partitions

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Pad inserts can be used to fill space at the top, bottom, or sides of the carton. The pads create layers of protection for the product, add strength/support to the carton and, in certain circumstances, prevent movement or jostling within the carton. Use for items such as a DVD player.

Figure 14: Inserts - Pads

3.

When using cardboard inserts or padding, place them under the centre seam tapeline, to avoid cuts to the product when opening the carton.

4

PROTECTIVE WRAPPING

Listed below are various types of wrappings that are used to secure and protect products from rough handling and/or the elements. 1. Automotive hard parts, such as brake rotors, are susceptible to oxidation, corrosion or rusting when they come into contact with humidity or moisture. These products must be protected with either VCI (Volatile Corrosion Inhibitors) paper or Poly Coated kraft-type paper. 2. Products that can be damaged by excessive humidity or moisture must be boxed with a package of desiccant. Products must also be packaged in moisture-resistant material. 3. Fragile products that cannot be protected by inserts or padding must be wrapped with un-faced corrugated, single-faced corrugated, styrofoam, kraft-type paper lined with styrofoam, or bubble wrap. 4. Products that are not packaged in cartons or boxes must be protected from damage during the transportation and distribution process. Some form of protective wrapping, such as bubble wrap, must be applied to these products.

5

SHRINK WRAP

If you plan to use shrink wrap, you must contact Canadian Tire Corporation for approval, to ensure that the packaging is adequate. (Contact: the Supply Chain Packaging Department at Pkg@cantire.com) Stretch wrap is often incorrectly referred to as shrink wrap. Shrink wrap must be heated to cause shrinkage and create a tight fit to the item being wrapped. Stretch wrap must not be used for packaging purposes. Please see the Glossary section for a definition of each term. 1. Products being bundled must be tightly wrapped with shrink wrap (not stretch wrap) and must be heat-sealed, to limit movement. 2. If more than 2 cartons are being bundled together, a corrugate tray or similar form of support is required under them. 3. Shrink wrap may be used for trays (made of corrugate). The wrap tension must be tight enough to ensure as little product movement as possible. There must be no gaps in the wrap that could expose the product or tray. 4. Matte finish must be used. 5. The minimum thickness requirement for shrink wrap is 300 gauge or 3 millimetres. 6. Bundles of shrink wrapped product should not exceed 36 inches x 24 inches x 24 inches and 50lbs.

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6

STRETCH WRAP
Stretch Wrap Coverage Specifications Wrapped 2–3 inches over the pallet covering all 4 corners 2 full rotations 3 full rotations 50%

All palletized products must be stretch wrapped. Each pallet should be wrapped individually with the following coverage:
Area on Pallet Pallet Bottom Top Overlap

You must use the following force to load specification. This coverage has been proven to be effective in maintaining the integrity of the load, as well as being cost effective.
Gauge: 65 Tension: 265% Width: 30”

Ensure that all labels are securely placed on the cartons, not on the stretch wrap.

7

SEALING CARTONS

Following are general guidelines on how to seal a carton. ? Ensure flaps are even and close to uniform ? Allow a 65 mm overlap of tape down each end panel ? Apply tape squarely and evenly ? Work from centre to ends, and press out any air bubbles ? Tape the completed package. Figure 15 shows the preferred procedure for sealing a carton:

Figure 15: Sealing a carton, source: Canadian General Standards Board

See the Canadian General Standards Board document CAN/CGSB-43.22-2001 for Corrugated Fibreboard Products Section B Closure Requirements for Classes 1A and 1B Containers – Domestic Service, Handling and Stacking.

8

IMPORTANCE OF CARTON AND MASTER-CARTON QUANTITIES AND DIMENSIONS

As a supplier to Canadian Tire Corporation, you must ship your products in configurations that work efficiently at both the Retail Store and the Distribution Centre.
Figure 16: Example of Packaging Continuum

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Consumer

Carton

Master Carton

Carton quantities are defined as either a single self-contained consumer unit or the first level of packaging above a consumer unit. This also serves as a Minimum Order Quantity (MOQ), and the ideal ship level for products going to our stores. Our goal is to have full cartons move from the supplier to the DC and onto the retail shelf. Correctly set carton quantities also lead to increased sales of your product(s), because our Associate Dealers are more likely to carry the product. Unless you have received specified carton or MOQ quantities by product from the Supply Chain Packaging Team as part of your RFP package, you must quote carton quantities based on the Carton Quantity Matrix defined as follows:
Figure 17: Carton Quantity Matrix Unit Price to Canadian Tire – US$ Projected Regular Sales Range 1 to 1500 1501 to 3000 3001 to 6000 6001 to 12000 12001 to 24000 24001 to 48000 48001 to 100000 100001 to 200000 200001 and up 0.01 to 1.50 3–5 6–9 8 – 12 10 – 18 15 – 25 20 – 40 30 – 54 42 – 78 50 – 90 1.51 to 3.50 1* 4–6 5–8 6 – 12 10 – 16 12 – 24 20 – 36 28 – 50 32 – 56 3.51 to 7.50 1* 1* 3–5 4–6 6 – 10 8 – 14 12 – 20 16 – 28 18 – 32 7.51 to 15.50 1* 1* 1* 3–5 4–6 6 – 10 8 – 14 10 – 20 12 – 24 15.51 to 38.00 1* 1* 1* 1* 2–4 4–6 6 – 10 8 1 12 9 – 16 38.01 and up 1* 1* 1* 1* 1* 3–5 4–6 6 – 10 7 – 12

* Do not exceed 6 units. Although Stores are more likely to order in quantities of 1 for products falling within these buckets, they may order in larger amounts during peak periods of the year. Quantities of 6 or fewer are most feasible to gain efficiencies. Master Carton is the level of packaging above a carton. We slot Master Cartons in pick locations at our distribution centres, and pick cartons from within them. You must ensure that the dimensions of your master cartons fall within the appropriate range, based on annual forecast consumer unit sales and the size of the consumer unit (in cubic feet). Calculate the Unit Cube as follows:
Unit Length (inches) x Unit Width (inches) x Unit Height (inches) = Unit Cube 1728

See the Master Carton Reference Guide, below. Failure to comply with these standards will result in shipping delays and potentially costly rework at your expense.
Figure 18: Master Carton Reference Guide

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Product for Approximate Size Reference Tennis Ball Kleenex Box 1.5 litre water bottle Gallon of Paint Basketball Deep Fryer Golf Bag Window Air Conditioning Unit Pallet Utilization

Unit Cube 0.01 0.05 0.1 0.25 0.5 1 2 5

Breakpack 12" H X 18" W X 16" L < 125,000 units < 25,000 units < 12,500 units < 5,000 units < 2,500 units < 1,250 units X X

Full Case 24" H X 36" W X 24" L > 125,000 units > 25,000 units > 12,500 units > 5,000 units > 2,500 units > 1,250 units All All

To ensure efficient receiving, storage and handling of product, you must make every attempt to have your highest level of packaging fit optimally within the confines of a CHEP pallet (40' x 48') and the DC allowable height. This helps to reduce the total number of CHEP pallets used for each shipment. For questions regarding pallet utilization, you can contact the CTC Shipment Quality Team at shipmentquality@cantire.com or 416-932-6919.

9

CONVEYABLE AND LARGE BULK PRODUCT

9.1 Conveyable Product
One of our main priorities at Canadian Tire Corporation is to ensure the full utilization of our conveyor system. We can handle products whose packaging is conveyable with greater efficiency and accuracy. This puts Canadian Tire and you in the best position to maximize sales and effectively manage inventory. This initiative has the full support of all levels of management across our organization. You must provide packaging that meets this objective. Inner and Master Cartons must have a design that is compatible with the CTC conveyor system. A conveyable carton must meet the following requirements: 9.1.1 Conveyable Dimensions
Length Width Height Weight

Measurement Type Imperial Minimum Maximum Metric Minimum Maximum

6” or 9” 24” or 36”

6” or 9” 24” or 36”

3” 24”

3lbs 50lbs

15.24 cm or 22.86 cm 60.96 cm or 91.44 cm

15.24 cm or 22.86 cm 60.96 cm or 91.44 cm

7.62 cm 60.96 cm

1.361 kg 22.68 kg

You must not use straps, bands, string or cord to secure a conveyable carton.

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24" (0.610m)

3" (0.076m) 9" (0.229m) 6" (0.154m) Minimum Dimensions 24" (0.610m) Maximum Dimensions

36" (0.914m)

Figure 19: Conveyable parameters

9.2 Large Bulk Product
Canadian Tire Corporation defines bulk product as product for which one or more of the following conditions exist: ? larger than a standard pallet (48" x 40" x 78" or 75 cube) ? heavier than 150lbs. ? cannot be stacked on, or combined with, other products ? requires a forklift to move it ? requires special equipment or special handling. You must ensure that all parts are secured with appropriate padding and/or inserts, both to protect the product and to ensure that the outer packaging remains intact. Whenever you introduce a product of this nature, please notify Pkg@cantire.com or 416-480-3374. We require additional notice to ensure that the supply chain is adequately prepared to handle the product. 9.2.1 Examples of Large Bulk Product

Trailer

Lawn tractor

Garden Shed

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10 CONSUMER UNIT PACKAGING
10.1 Consumer Unit Definition
A consumer unit is defined as a unit of measure that CTR sells of a product, at the cash register, to the consumer. The requirements for consumer unit packaging are as follows: ? All consumer unit packaging must display a scannable Universal Product Code (see below). ? For new CTR Retail Brand packaging, print proofs must be submitted to the Category Management Team for approval, prior to printing. ? All shipments must be in proper packaging, as per approved print proofs. ? Product packaging must be consistent with the specifications that are outlined in the product quotation and the PO. For example, if the PO specifies CTN of 6 for a product, each carton should contain 6 consumer units. ? Only full carton quantities can be received. Do not ship partial cartons. ? The Supply Chain Packaging Team (pkg@cantire.com) must authorize any change in packaging configurations before the product is shipped to CTR.

10.2 CTR Product Number
When Canadian Tire lists a new product, we assign a 7–digit CTR product number (including check digit). When dealing with product numbers, you must adhere to the following guidelines: ? Including the CTR product number on your consumer unit packaging helps store staff when they stock shelves and service customers. Canadian Tire retail branded packaging, and packaging that is exclusive to CTR, must have the CTR product number included on the package. For all other products, we urge you to make all possible efforts to incorporate the CTR product number on your consumer packaging. ? You must clearly mark CTR product numbers on the outside of the shipping carton. Palletized shipments must face the product numbers outward, where they are visible to the receiving department. ? You must show CTR product numbers on the Customs Documentation Package, at the invoice line level, for each item you ship. ? You can choose to print, stamp, or hand-write the CTR product numbers, so long as they are easy to find and to read. ? If we receive product without CTR product numbers, our staff must code it manually. Repeat offences are subject to compliance fines (see section 10.5 Physical Shipment Quality/Rework). If you discover a product number discrepancy, you must notify the Category Management Team immediately.

10.3 Universal Product Codes (UPCs)
All product received at Canadian Tire Distribution Centres and Retail Stores must have a scannable 12 or 13–digit Universal Product Code (UPC) printed on the consumer package. CTR does not currently accept 14–digit Global Trade Item Numbers (GTINs). If packaging does not exist for the product, you must attach a UPC label or tag to the product. Every product must have a separate and unique UPC. This includes: ? Every individual colour, size or pattern of a given product ? Promotional items (e.g., bonus packs) ? Bulk products Specific industry guidelines exist to regulate the proper use of the UPC. These guidelines are available through: ? Canada: Electronic Commerce Council of Canada 800-567-7084 or www.eccc.org ? U.S.A.: Uniform Code Council – 937-435-3870 or www.uc-council.org It is mandatory for all Vendors to familiarize themselves with these guidelines, in order to ensure the proper application of the UPC to all products. You will incur rework fees if you do not meet the requirements (see section 10.5 Physical Shipment Quality/Rework.

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Note:

You must use tamper-proof UPCs, or permanent adhesive for UPC decals, so that it is not possible for anyone to substitute the UPC from a lower-priced product.

10.4 UPC Compliance
If we receive any product with a missing, incorrect, or non-scannable UPC at a Canadian Tire Distribution Centre or Retail Store, our distribution personnel will apply a UPC label to it. After one year of UPC compliance without incident, your record will be cleared, so that the next incident of a UPC violation will be treated as a first offence, and charged at the hourly rework rate (see below).
Amount * 1st Offense 2nd Offense 3rd Offense Subsequent Offenses Hourly rework charge Hourly rework charge Hourly rework charge Hourly rework charge AND AND AND $1,000 $5,000 $10,000 Penalty *

* The rework charge is $100/hour (CAD).

10.5 Physical Shipment Quality/Rework
We monitor your shipment quality constantly. Periodically, your shipping errors require Canadian Tire to perform rework in order to facilitate product movement through the supply chain. When rework is required, the Merchandise Preparation Department performs it, and charges it to you at a rate of C$100 per hour.

10.6 Product Card/Packaging Hanging Hole Specification (Butterfly Hole)
The size and position of the hanging hole is specified by the Canadian Tire Retail Brands Department as follows: ? ? The length of the hole is to be 1 3/8” by 3/8” wide with round ends. There is to be 3/8” diameter half-moon centered on the top edge of the hole

On standard packs, this hole should be centered on the vertical centre of the card and 3/8’ down from the edge. On large and heavier packs, two hanging holes should be used. Make sure that the centre of each hanging hole is an even number of inches apart (centre to centre).

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Packaging Standards: 错误!使用“开始”选项卡将 Heading 1 应用于要在此处显示的文字。

10.7 Fine Process and Dispute Process
Before processing a fine, CTR investigates the information available; to ensure its validity. We notify you of any non-compliance penalties via email, and send a debit note to the CTR Accounts Payable department for processing The penalties are charged to your account, and collected on a regular basis. ? The Supplier Fine Notification indicates the amount of the fine, the late POs, the associated CTR product numbers, and the type of fine. The two fine types are RPA and/or Receipt. As described above, you incur an RPA fine for submitting the RPA late. You incur Receipt fines for supplier-initiated date changes; quantity changes, short shipments, missed pick-ups and delayed pick-ups. ? Since all processed fines are considered valid, the onus is on you to provide details to substantiate your claim in a fine dispute. Submit all claims to the Supplier Performance Team at ctr-logsp@cantire.com. ? Dispute claims for non-compliance penalties must be submitted within two weeks of the fine email notification. After two weeks, the fine in question will be considered closed. In addition, you can confirm the validity of a late RPA fine by checking the RPA timestamp in WebForms. For help finding this information in WebForms, please contact SPS Commerce at 800-223-3354 or customersupport@spscommerce.com.

10.8 Bilingual Packaging Requirements
? ? ? ? All consumer unit packaging, whether it is part of the CTR Retail Brand Program or your own brand, must be bilingual (English & French) and in compliance with Quebec's Charter of the French Language. French must be featured at least as prominently as any other language on products, their containers and wrappings, and documents or objects supplied with them, including directions and warranties. You are responsible for any fines incurred by Canadian Tire for non-compliance with the Charter of the French Language. Distributors/retailers are liable for a fine of $500 to $1,400 for the first offense, and $1,000 to $7,000 for each subsequent offense.

For assistance with the bilingual packaging requirement, please contact the Retail Program Planning team at rpp@cantire.com.

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Packaging Standards: 错误!使用“开始”选项卡将 Heading 1 应用于要在此处显示的文字。

10.9 Charter of the French Language
Bill 40, An Act to amend the Charter of the French Language, came into effect on January 1, 1998. It states in Section 205.1 of Bill 40 that a distributor / retailer who distributes or sells: ? "a product, if the inscriptions on the product, on its container or wrapping, or on a document or object supplied with it, including the directions for use and the warranty certificates" do not feature French at least as prominently as any other language used; ? "computer software, including game software and operating systems" that is not available in French, unless no French version exists; or ? "a game or toy" which requires the use of a non-French vocabulary for its operation and there is no French version of the toy or game …commits an offense, and is liable to a fine of $500 to $1,400 for each first offense, and $1,000 to $7,000 for each subsequent offense. If there is a complaint, the Qué Government "shall give the alleged offender formal notice to comply therewith bec within the time indicated". The time indicated to develop an action plan acceptable to the Qué Government bec would typically be from two to four weeks. Bill 40 clearly puts the liability on the distributor and retailer to comply with the Charter. An inscription on a product may be exclusively in a language other than French in the following cases: ? a recognized trademark or pending trademark, including the term "Patent Pending"; ? a place name designating a place situated outside Qué bec; ? a name of origin; ? the firm name of a firm established exclusively outside Qué bec; ? an inscription on a cultural or educational product such as a book, magazine, publication, disk, film or tape, or on a non-promotional greeting card, appointment book or calendar; ? the product is from outside Qué and the inscription is engraved, baked or inlaid in the product itself, riveted bec or welded to it or embossed on it, in a permanent manner. However, inscriptions concerning safety must be in French and appear on the product or accompany it in a permanent manner; ? an inscription embossed on a tire.

Page 21

Appendix A – Glossary

APPENDIX A – GLOSSARY
1–2–3 Bottom Box

The four flaps that make up the bottom are die cut. The large panel folds down first and then the two end panels. The last flap then snaps into place.
Box

A container typically constructed with four sides perpendicular to the base and often having a lid or cover. Canadian Tire Corporation defines a box as an unsealed and or non-conveyable, non-corrugated cardboard container.
Box Manufacturer Certificate – Edge Crush

A stamp on corrugated boxes that lists the manufacturer, type of corrugate, edge crush strength, size limit, gross weight limit, city and province of manufacture. The ECT is the preferred test of corrugate.
Box Manufacturer Certificate – Mullen

A stamp on corrugated boxes that lists the manufacturer, type of corrugate, burst test strength, minimum paper combination, size limit, gross weight limit, city and province of manufacture.
Box with cover

A box with a removable top and/or bottom. For example, a shoe box.
Boxes with glued bottoms and RSB Top Flaps

The top panels are the same as a regular slotted container and the bottom flap is glued.
Carton

A corrugated container made from cardboard or coated paper, usually rectangular in shape. Must be sealed, and must meet the Canadian Tire conveyability requirements for dimension and weight (see: Section 9 Conveyable and Large Bulk Product).
Consumer Unit

Product packaged at the consumer level.
Conveyor

A moving belt or rollers that transport(s) objects. At Canadian Tire, this is used to move product from a pick location to a shipping dock in preparation for outbound shipping.
Corrugated Container

A carton or box made with linerboard and corrugated flute/medium.
Corrugating/corrugated medium

Type of paperboard used in forming the fluted portion of corrugated board.
Desiccant

A product that absorbs moisture; used in containers to protect product from moisture damage.
Double Wall

Two layers of fluted corrugated board. (See Figure 2.)
Edge Crush Test (ECT)

A test measuring compressive strength of an edge or joint. Results are shown in pound force per inch required before the box collapses. This is the preferred test of corrugate.
Fibreboard:

A general term describing combined paperboard (corrugated or solid) used to manufacture containers.
Fibre Mixture

Fibres produced from plants such as jute, hemp, wheat straw, rice straw mixed with other plants or recycled corrugated.
Flute

Wave-shaped form produced in corrugated medium, and placed between two linerboards to form corrugated board. (See Figure 1.) Flutes are made in five sizes: A, B, C, E, and F. ? "A" flute is the original flute size with 36 flutes per foot.

Page 23

Appendix A – Glossary

? ? ? ?

"B" flute has 50 flutes per foot. "C" is the most common flute size with 42 flutes per foot. "C" is the size between A and B. "E" sized flute has 94 flutes per foot. It results in a flatter container with excellent crush strength. "F" sized flute has 128 flutes per foot. It is a little more than half the thickness of E Flute.

Headspace

Empty space between the product and the top of the box.
High Gloss

Any finish that adds an excess gloss or sheen to the box.
Joint

Where two edges or pieces are joined together – i.e., by gluing, stapling or taping.
Linerboard

The inner and outer layers of paper that form the wall of a corrugated board.
Mastercarton

Corrugated carton containing multiple cartons or boxes.
Material Handling

The movement, storage, or control of materials – i.e., through the supply chain.
Moisture resistant

Does not allow water vapour to penetrate a box or affect its contents.
Mullen Test

Determines the compression strength and burst threshold of a box. The Edge Crush Test is the preferred test of corrugate.
Non-skid (or skid resistant) coatings

Resist sliding. Can be applied to top or bottom of box. This finish is very important for boxes that stack on an angle.
Oil and grease resistance

Oil and grease resistant coatings can be applied to a box, to protect it from exterior oil and grease. Good for automotive lubricants and fluid products.
Oxidation

A substance combines with oxygen to form an oxide. For example, iron oxidizes to form rust.
Pallet

A platform with a slatted bottom, used to hold and ship cartons.
Paperboard

The broad classification of materials made of cellulose fibres, primarily wood pulp and recycled paper stock, on board machines.
Poly Coated Kraft Type Paper

Kraft paper that protects products from water, oil dust and grease.
Pulp

A mixture of cellulose fibres. See also Wood based pulp.
Regular Slotted Box (RSB)

A box where all side flaps are the same length, and the two outer flaps are half the container's width. The outer flaps meet at the centre of the box when folded. (See: Figure 5)
Shipper carton

The outer carton used in shipping, to protect goods already within packaging.
Shrink Wrap

A protective wrapping for articles of merchandise. It consists of a clear matte finish plastic film that is wound around the articles and then shrunk by heat to form a sealed, tight-fitting package. The minimum requirement for shrink-wrap is 300 gauge or 3 mil.

Page 24

Appendix A – Glossary

Single faced corrugated

Flute/medium glued to one flat facing linerboard.
Single Wall

Flute/medium glued to a top and bottom piece of linerboard.
Straps

A band, plate, or loop of metal used to clamp or bind objects together.
Stretch Wrap

A plastic film used to wrap palletized freight for shipping. Also known as Pallet Wrap.
Styrofoam

Expanded rigid polystyrene plastic.
Trays with locking covers

Produced from a single piece of linerboard. The bottom is one continuous piece, and end panels have many layers of corrugate lining. (See: Figure 8)
Un-faced corrugated

Flute or medium without liners.
Volatile Corrosion Inhibitor Paper

Chemically treated paper that releases vapors to counteract the process of oxidation, corrosion or rust.
Water resistant coating

Does not allow water to penetrate into the box.
Wood based pulp

Mechanically ground or chemically digested wood used to manufacture paper or fibreboard.

Page 25

Appendix B – Resources

APPENDIX B – RESOURCES
URL www.astm.org www.boxboard.com www.corrugated.org www.fefco.org www.fibreboardbox.org www.ihscanada.ca www.paperonweb.com www.pwgsc.gc.ca/cgsb/home/index-e.html www.tappi.org Description American Society for Testing and Materials Boxboard Containers International magazine Corrugated Packaging Council European Federation of Corrugated Board Manufacturers Fibreboard Box Association IHS Information Handling Services Pulp and Paper Dictionary online Canadian General Standards Board Technical Association of Pulp and Paper Industry

Page 26

Appendix C – References

APPENDIX C – REFERENCES
Name Contact Canadian General Standards Board (CGSB) Gatineau, Canada K1A 1G6 Tel: 819-956-0425 or 1-800-665-2472 Fax: 819-956-5644 www.pwgsc.gc.ca Documents Corrugated Fibreboard Boxes Document Number: CAN/CGSB 43.22-2001, Canadian General Standards Board 01-Oct-2001 Name Contact Railway Association of Canada 99 Bank Street, Suite 1401 Ottawa, ON K2P 2G8 Tel: 613-237-4250 or 800-854-7179 Fax 613-567-6726 Documents Railway Association of Canada Classification RAC-6000 A & B – Packaging Standards, Rule 41

Name Contact

Technical Association of Pulp and Paper Industry (TAPPI) P.O. Box 105113 Atlanta, GA 30348-5113 Tel: 1-800-446-9431 www.tappi.org

Documents

Flat Crush Test of Corrugated Board (Flexible Beam Method), Document Number: TAPPI T808 Edgewise Compressive Strength of Corrugated Fibreboard (Short Column Test), Document Number: TAPPI T811 Ply Separation of Solid and Corrugated Fibreboard (Wet) Document Number: TAPPI T812 Edgewise Compressive Strength of Corrugated Fibreboard Using the Clamp Method (Short Column Test) Document Number: TAPPI T839

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