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Transcript of Carrefour
Carrefour is in15 countries - Largest retailer in Europe
Impressive network of suppliers the second largest retailer in the market
Key Facts => 6000 factories located mainly world in China - 480.000 employees - 2.100.000 employees
Knowing and serving their Competitive global suppliers customers better with quality
Fast follower in terms of business process technology
Focused on customer needs
Not as cost conscious as Walmart
Focused on efficient globally adaptable processes
Shorten the supply-chain by bypassing intermediaries
Develop local products purchasing from local suppliers and selling private labels
What problems do Carrefour address? How does global supply chain initiative help solve these problems?
What issues and challenges do global supply chain strategy present? What can be done to address these issues?
What are the business as well as the technology issues that should be addressed when Carrefour implemented global supply chain?
Supply Chain Management (conclusion)
Supply chain integration and flow logistics
Risk Sharing and collaboration
Sustainable operations and practices
Adherence to global standards
Suhaib Al ashhab 1449
Fadel Al mazroui 1463
Case Study : Carrefour’s Global Supply Chain System
“To embrace the challenge of building a worldwide company, not only geographically international, but truly global in vision, leveraging each country's experience as we optimize our resources and technology."
- Carrefour's Global Vision, Annual Report 1997
Supplier management strategy based on driving down costs
Standard protocols for the introduction and management of new vendors
Suppliers are evaluated to ensure that they are operating within the Carrefour guidelines
Regional procurement centers
Managers place orders for local goods in line with the company’s strategy of customization
Carrefour Supply Chain Implementation
Carrefour Supply Chain used the Electronic Data Interchange (EDI) for procurement and basically had three main entities:
The Distribution Centers: received, stocked and distributed goods received from suppliers.
How Did Technology Help Carrefour
In 2003, Carrefour tied up with See Beyond to install integrated composite application network software:
1) to adapt itself to the local condition by customizing its operations, the merchandize mix and even store formats
2) to integrate its stores, distribution centers and local supply chain partners
Carrefour purchased goods from local manufacturers in all the global markets
90% of the goods at Carrefour stores in developing markets were produced locally.
Local purchases enabled the company to keep its cost low as well as shorten its supply chain
Problems faced with Global Supply Chains
Underutilized capacities of manufacturing plants.
Excessive finished goods.
Increased transportation distances
Cultural and Social difference among the partners