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Carrefour originated from France, it is an international retailer that is the worlds second-largest and the largest in Europe, and it is a leader in the industry <br />There are four kinds of stores in Carrefour, including hypermarkets, supermarket, discount and convenience<br />Europe, Latin America and Asia are operated in three main markets<br />Introduction<br />
456 295 collaborators<br />87 billion euro<br />Leader in Europe<br />More than 3 billion passages<br />Cash desk, a year, any formats<br />N°1 Large distribution in France <br />N°2 in the world distribution <br />
Simple products (Sale concentrated in wholesale and big retailers, Discounts for quantity)<br />Control of raw materials ( proper brand) <br />Pursuit of economies of scale in his technology<br />Lowcost<br />
Direct procurement strategy<br />Acquiring food products and other goods directly from the manufacturers<br />Approximately 90% of the goods at Carrefour stores in developing markets were procured locally<br />Local purchases enabled the company to keep its costs low as well as shorten its supply chain<br />in a few countries, for instance, in Japan, Carrefour depended on wholesalers for almost 40% of the items supplied to it<br />
Through the application of modern technologies, Carrefour was able to significantly improve its supply chain operations over the years. In late 2003, in its efforts to integrate its global supply chain operations.<br />Carrefour install Integrated Composite Application Network (ICAN) software. This was a part of Carrefour's strategy to adapt itself to the local conditions by customizing its operations, the merchandize mix and even store formats. By implementing ICAN, Carrefour aimed at integrating its stores, distribution centers and supply chain partners in various countries...<br />The New Initiative<br />
Carrefour wanted to get rid of a part of its stocks, downstream<br />His subcontractor Kuehne+Nagel isin charge of the management of a part of its supply chain<br />Centers Consolidation and Collaboration (CCC)<br />Logistic management <br />
Principles of functioning: Flow of information<br />Industrial Provider<br />Business Management<br />WEB PORTAL<br />CCC<br />WMS<br />Business Management<br />Management of referencial<br />Management of supply CCC<br />Management of command of Carrefour<br />
Logisticsstrategies:<br />WhatIs a LogisticsStrategy?<br />
WhyImplement a LogisticsStrategy?<br />Constantlychanges in chainsupply<br />Toadapttotheflexibilityofthesupplychain<br />Identifytheimpactofimminentchanges<br />
Strengths<br />Weakness<br />Market leader<br />Aggressive marketing and adaptable business model<br />Brand recognition<br />Focus on competitive prices<br />Increasing cash flows from operation<br />Stagnant sales in France<br />Declining profitability<br />Losses for Ooshop.com<br />Threat<br />Opportunitie<br />Stiff competition from discount retailers in France<br />Increasing labor costs in Europe<br />Poor retailing outlook in the Eurozone<br />Strong growth potential in Asia<br />New stores<br />Agreements with Coop Atlantique, Hyparlo and Finipe<br />
5 Forces of porter <br />The threat of the entry of new competitorsHard-discount<br />The threat of substitute productsE-commerce<br />The bargaining power of customers/suppliersExtremely strong (carrefour can accept or not <br /> the product of his suppliers) <br />The intensity of competitive rivalryWal-Mart,Tesco,Auchan,MetroAG, Ahold (going to fight at the level of the sales force, of the advertising, the image, of the adopted strategy) <br />
Low cost and Standardization<br />Empowered employees using technology<br />Long term relationship with suppliers<br />No single supplier accounting for more than 2.4%<br />Selective suppliers ( P&G & GE)<br />Low transportation cost of 3% compared to industry average of 5%<br />Manage own stocks and reduce pack sizes and timely priced markdowns<br />A store devote only 10% of its square footage to inventory<br />Wal-Mart strategy<br />
Logisticsmanagement<br />Carrefour<br />Wal-Mart<br />Uses 3PL when venturing into countries outside Europe like Brazil and China<br />Move to ‘River and Rail’ transport to reduce truck mileage and safeguard the environment<br />Average inventory is 37 days of COGS<br />Minimizing Pallet size for effective inventory management<br />Fast and responsive system<br />Company owned transport fleet of 3500 trucks<br />Replenish store shelves twice a week compared to industry average of every 2 weeks<br />
Transportation Systems <br />Carrefour<br />Wal-Mart<br />Owned+3PL system of transportation<br />Fleet of 3500 self owned trucks<br />Complete ownership of Transportation systems <br />Moving forward<br />Walmart is going to even recruit drivers who will drive the trucks<br />All trucks equipped with latest tracking equipment's and are tracked via satellite<br />
Technology as enabler<br />Carrefour <br />Wal-Mart<br />ERP systems implemented by Carrefour backed by EDS<br />Generix is the main Supply Chain Software provider. Integration of 3PL and logistics capabilities of Carrefour and suppliers <br />Warehouse Management System Provided by Generix<br />Was the one who pioneered bar codes in 1984<br />Out-of-stock items are replenished 3 times faster than before,<br />Around 2% of all lost sales are due to the simple fact a store has run out of an item, but 41% of lost sales are due to inventory problems <br />
Procurement & Distribution<br />Carrefour <br />Wall-Mart<br />Prefers local vendors and customizes product offerings to cater to local tastes<br />Not as cost conscious as Walmart with vendors<br />Procurement of goods bypassing all intermediaries<br />Vendors selected only if they provide goods at lowest prices<br />Significant amount of time spent in meeting vendors and understanding their cost structures<br />Least shipping costs because of cross docking and other optimization<br />
Summary<br />Carrefour <br />Wal-Mart<br />Euro 85.96 Billion Sales.<br />495,000 employees.<br />Euro 385 million profit.<br />No such recognition though 2nd largest retailer.<br />Prefers Local vendors.<br />Private labels marketed as Brand Carrefour. <br />Technology follower.<br />Primarily European.<br /><ul><li>$405 Billion in Sales.
In the future, Carrefour should be expanded on E-commerce influence<br />Carrefour need to increase more Online Store sites <br />Try to enter in new markets <br />Use green logistics technologies <br />Develop more efficient systems <br />Carrefour future<br />