This document provides an analysis of Dollarama's supply chain and logistics operations. It begins with an introduction and history of Dollarama, founded in 1992 in Quebec. It then describes Dollarama's three-pronged supply chain strategy of sourcing directly from over 1,260 vendors in over 25 countries, maintaining a diverse supplier base, and emphasizing responsible sourcing. The document outlines how Dollarama's approach impacts key areas like costs, innovation, and sustainability. It also discusses challenges like disruptions and inflation, and strategies to address them. In conclusion, the document states that Dollarama's success is driven by efficient supply chain management and strategic focus on diversification, optimization, and technology integration.

1. I N T R O D U C T I O N T O B U S I N E S S
L O G I S T I C S
A COMPREHENSIVE ANALYSIS
Prepared By:
Naimik Patel
Greeshma Patel
Akilravi
Nirmit Desai
Akshay Gachinakatti

2. Page 2
History and
Profile
Structure of
Approach
Competative
Analysis
Procurement
and
Inventory
Decisons
Challenges,
Impacts and
Solutions
Conclusion
Comparetive
Analysis
Supply Chain
and
Management
Approach
Strategic
Planning and
Approach
Sucess and
failure factors
01 02 03 04 05 06 07 08 10
09
Table Of Content

3. Dollarama History
and Profile
Dollarama was founded by third-generation retailer and
Canadian entrepreneur, Larry Rossy. It all started with one
store, in Matane, Quebec, in 1992, and quickly grew over the
next two decades to become a household name and shopping
destination for Canadians from coast to coast.
Dollarama today is a recognized Canadian value retailer with
well over 1,000 locations, led by Neil Rossy, fourth-generation
retailer and member of Dollarama’s founding management
team.
Page 3

4. Dollarama’s Supply
chain Approach
Dollarama's supply chain prioritizes efficiency and
flexibility. Diversifying sourcing, optimizing logistics,
and embracing automation ensure a reliable and
resilient operation, reinforcing its position as a
leading Canadian discount retailer.
Sourcing Directly
Diverse Supplier Base
Responsible Sourcing and Extended
Supply Chain Monitoring
Page 4
Benefits of obtaining items directly from
suppliers, avoiding intermediaries, and
negotiating cheaper rates
Advantages of a varied supplier
network, reducing dependencies, and
ensuring flexibility
Emphasize product safety standards,
fair treatment of employees, and
environmental preservation

5. Page 5
Importance of
Supply chain
and logistics
management
•Driving
efficiency
• Reducing
costs
•Improving
Customer
Service
•Gaining a
Competitive
Advantage
•Managing
Risks
• Sustainability
and Corporate
Social
Responsibility

6. Dollarama's
three-
pronged
supply chain
strategy
Sourcing Directly
Benefits of obtaining
items directly from
suppliers, avoiding
intermediaries, and
negotiating cheaper rates
Diverse Supplier
Base
Responsible Sourcing
and Extended Supply
Chain Monitoring
Dollarama's Supply
Chain Approach
Page 6
Advantages of a varied
supplier network,
reducing dependencies,
and ensuring flexibility
Emphasize product safety
standards, fair treatment of
employees, and
environmental preservation.

7. Impact on key
business areas
Sustainability
Cost Efficiency
Innovation
Page 7
Responsible sourcing, adhering to product
safety standards, and promoting ethical
practices
•Direct sourcing, eliminating intermediaries,
maintaining industry-leading margins.
Quick adoption of new and trendy
products due to a broad supplier network
Customer Satisfaction
Timely product updates, and a diverse
range of items to meet customer needs.
Example: Dollarama's ability to swiftly offer popular
seasonal items and trend-driven products showcases its
commitment to customer satisfaction and innovation

8. Page 8
Competitive
Advantages of
Dollarama
Vendor base is diverse
and flexible, sourcing
products from over 25
countries.
Cost Efficiency
and Product
Variety
Customer
Service and
Feedback.
Proactive Risk
Management.
Environmental
Consciousness.

9. Components Impact on logistics
Procurement and inventory choices:
Flexibility in procurement allows the company to
adjust sourcing decisions based on changing market
conditions and risk profiles.
Segmentation
May require a more complex logistics operation to
manage different product categories efficiently
Warehousing
Reduces operational costs and environmental
impact
Transportation via trains
Rail transportation provides cost-effective and eco-
friendly solutions for long-distance movements
Technology and Logistics
Improves energy efficiency, reduces operational
costs, and enhances overall productivity
Key elements related to supply chain
and logistics management:
Page 9

10. Supply Chain Structure & Sourcing Strategy
• The stages: sourcing, warehousing, transportation and
distribution.
Sourcing
• Direct sourcing from over 1260 vendors

11. Central
Warehouse
Montreal
Store network 1
Store network 2
Store network 3
Store network 4
Store network 5
Import through
the Port of
Vancouver
Warehousing, Transportation & Distribution
• 500,000-square-foot central warehouse in Montreal
• Hub and spoke system for Distribution
• Favours Rail transport to limit its reliance on long-haul
truck transportation.
• Measures taken to reduce GHG emissions and optimize
container usage
Procurement & Inventory Strategy
• securing long-term relationships with reliable suppliers
• central warehouse and JIT (Just-In-Time) inventory
systems
Page 11

12. Segmentation Strategies
• Target market, low-priced products to a diverse customer base.
• competitive pricing approach with products typically priced between $1 to
$4 CAD
• Wide-ranging product portfolio
• strategic store locations in high-traffic areas
Planning, and Operational Logistics
• Demand forecasting based on historical sales data and market trends
• Use of advanced WMS and TMS
Page 12

13. The major challenges that
the company must overcome
in their supply chain and
logistics operations
Dollarama's revenue growth is attributed to well-
stocked stores and a diverse product range. Supply
chain strengths ensure timely product availability. While
less congested ports provide an advantage, Transpacific
shipping rate increases pose risks. To tackle challenges,
Dollarama should diversify sourcing, optimize the
supply chain, and stay vigilant for disruptions.
Page 13
Supply Chain
Disruptions
Inflation and
Rising Costs
Labor Market and
Workforce
Management

14. Page 14
Implementing risk
management
strategies and building
contingency plans can
help mitigate the
impact of unforeseen
disruptions.
Supply Chain
Disruptions
• Diversify sourcing
regions and suppliers
• Implement risk
management
strategies
• Build contingency
plans for unforeseen
disruptions
• Optimize supply
chain costs
• Negotiate with
suppliers
• Strategic pricing
adjustments
• Competitive wages,
benefits, & growth
opportunities
• Optimize workforce
scheduling
• Adopt automation for
warehouse operations
Inflation Tight Labour
Market

15. Supply
Chain
Broad supplier network, efficientsupplier
management, data-driveninventory
optimization, centralized distribution
model
Bulk purchasing, efficient supplier
relationships, streamlined inventory
control, centralized distribution model
with large distribution centers
Well-established supplier
relationships, bulk purchasing,
cost-efficient sourcing
Streamlined inventory control,
centralized distribution model,
focus on $1 pricing strategy
Focus on Product Quality, Data-
Driven Approaches, Cost-Effective
Distribution
Emphasis on $1 pricing strategy,
Narrower product selection, Strict
inventory control
Efficient supplier network, strong
relationships competitive prices,
consistent quality,
Data-driven inventory optimization,
balanced stock levels to meet
demand
Focus on Product Quality, Data-
Driven Approaches, Cost-Effective
Distribution
Diverse product assortment,
Balanced stock levels for various
product range
Differences
Similarities
Inventory
Management
Supplier
Management
Comparative Analysis: Dollarama vs. Dollar Tree Inc. in
Supply Chain & Logistics
Aspect Dollarama Dollar Tree Inc
Page 15

16. Conclusion
Dollarama's success as a leading Canadian value retailer is
driven by efficient supply chain management, direct sourcing,
and a diverse supplier base. Customer happiness, sustainability,
and innovation strengthen its position in the retail industry.
Strategic focus on diversified sourcing, supply chain
optimization, cost-cutting, workforce management, and
technology integration ensures continued growth and customer-
centricity.
Page 16
• Efficient supply chain and logistics management drive success
• Direct sourcing and diverse supplier base for product variety and
cost-effectiveness
• Commitment to customer happiness, sustainability, and innovation
• Strategic focus on diversified sourcing, supply chain optimization,
cost-cutting, workforce management, and technology integration for
overcoming challenges and ensuring future growth.

17. Open for Questions.....

18. References
1) Suman, & Suman. (2023). Importance of supply chain management. Intellipaat
Blog. https://intellipaat.com/blog/importance-of-supply-chain-management/?US
2) About us - Dollarama. (2023, July 10). Dollarama.
https://www.dollarama.com/en-CA/corp/about-us
3) Annual information form – Dollarama https://www.dollarama.com/en-
CA/corp/wp-content/uploads/2021/04/2021-Annual-Information-Form-vFINAL.pdf
4) Dollarama. (2023). Annual ESG Report.
https://www.dollarama.com/en-CA/corp/sustainability
5) Ross, D. (2018). Dollar Store Logistics: Inside the Operations of Dollarama.
https://www.canadianshipper.com/