The New ISO Consumer Product Safety Standard2013 North America Product Safety Summit

Andy DabydeenSeptember 11, 2013

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CT’s core business is retail

Preparing Canadians for the Jobs & Joys of Life in Canada

Customer

Automotive Living Fixing Playing /Sporting Goods

Apparel

Retailbanners

Business categories

Productsand

services

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We have six key business categories

Home cleaning Home decor Home org Kitchen Backyard living

& fun Gardening Outdoor

tools Seasonal Home Services

Gas Auto parts Tires & power

sports Auto Service Car care &

accessories Roadside

assistance

Home repair Paint Tools

Hockey Golf Cycling Fitness Camping Hunting Fishing

Industrial wear Men’s wear Women’s wear Athletic apparel Footwear

Credit cards Retail deposits In-store warranties Insurance Deferred &

instalment payments

2012 revenue = C$11.4B C$7.8B C$1.6B C$1.0B C$1.0BReportingsegments

Financial Services

Retail

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CT’s retail network across Canada

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At least one Canadian Tire store is within 15 minutes of 90% of Canadians

Store count as at December 29, 2012

Ontario

200

127

146

164

59

Quebec

99

182

48

62

-

West

136

157

151

38

25

East

55

29

41

35

3

4 CTR distribution centres

2 Mark’s distribution centres

3 trans load facilities

3 auto parts distribution centres

1 FGL Sports distribution centre

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Why a guidance standard?

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Logistics

ManufacturingRa

w M

ater

ials

Retail RetailConsumer

OnlineConsumerInternet

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ISO 10377 Consumer Product Safety

Focused on suppliers of consumer products – including all actors within the supply chain – not just manufacturers

– Broad definition of consumer products used, which may be constrained by jurisdictions – however, in the absence of consumer protection laws, the standard could be used for any product made available to consumers

It is a guidance standard, not intended to be auditable, but a series of best practices for industry to facilitate safer products being sold to consumers

• The standard is focused on providing guidance to small-to-medium sized businesses primarily

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The Supply Chain Context

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Design

Material Manufacture

Component Manufacture

Manufacture Assembly

Transport

Distribute

Import / Export

Storage

Retail

Design

Production

Marketplace

Feedback Information Flow

Documentation

Product / Information FlowProduct/Traceability

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Standard in Brief – Basic Principles

All actors within the supply are responsible for safety in consumer products, from design, through production, and into the marketplace

– It is cheaper and more effective to address product safety issues in design, than in the marketplace

Organizations should be committed to product safety– Management accountability for product safety– Competent and sufficient resources to deal with product safety– Documentation and document retention processes in place– Continuous improvement processes (and the supporting culture)– Be aware of laws, regulations and acceptable best practices that

govern products in marketplace jurisdiction

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Implementing Product Safety Guidelines

• Executive sponsorship is critical• Build a compelling roadmap – risks and

opportunities lie ahead• Getting the right people and resources;

supplier engagement• Implement sustaining processes• Changing to a product safety culture

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Making the Case for Investing

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Raw Materials Manufacturing Retail Consumers

ReputationBrand

ComplexityCost

ExperienceLoyalty

Compliance

Investment

Value

Product safety presents many risks and opportunities for retailers

Customer ambassador

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Standard in Brief – Safety in Design

• Safety starts with design specification– Product specific attributes– Taking into consideration, the

entire lifecycle of the product– Safety considerations in design – Marketplace input

• Risk management processes – evaluation, hazard identification and exposure analysis– Reduction of risks– Risk communication

• Documentation of the process and the output of design

MISUSE(predictable)

IDEAL(predictable)

Fore

seea

ble

Intended Use

YES

YES NO

NO

UNPREDICTABLEMISUSE

Continuous improvement

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Consumer Expectations & Awareness

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Regulations Standards Accepted Best Practices

Features / Functionality

Performance / Durability

minimum

Neglecting to do the minimum guarantees failure ... and, customers will know.

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Standard in Brief – Safety in Production

Production management processes need to be in place to ensure safe products are being produced

– Design specification validation – with designer, customer and may include prototypes

– Readiness for production – management, processes, tooling, training, raw materials specification, and awareness of supply chain constraints

Manufacturing safe products, consistently– Raw materials inspection and inventory management– Monitoring the execution of manufacturing to ensure consistency and quality– Validating the manufacturing processes with product testing and certification– Monitoring the marketplace for continuous improvement

Distribution of the final product to the marketplace

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Standard in Brief – Safety in the Marketplace

Prior to purchasing a product, marketplace actors are advised to verify the products they’re purchasing, meets their requirements (including safety, standards and regulatory)

– After purchase, marketplace actors are advised to continue verification

Marketplace actors should proactively collect and analyze data from their customers, to feed into continuous improvement processes

Product incident management process to quickly and effectively deal with customer reported incidents – and be aware of incident trends

– Note ISO 10393 Consumer product recall – Guidelines for suppliers

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thisCHANGES

everything

Contacthttp://www.canadiantire.ca/andy.dabydeen@cantire.com