our Managing the Gsc

8/9/2019 our Managing the Gsc

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CARREFOUR- MANAGING THE GSC

Presented by:

Gopaal Jaisswal (09ESHYD015)

Sanjiv Deshpande (09ESHYD035)


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What is Carrefour ?

In commerce, a hypermarket is a superstore which combines a supermarket and a

department store. The result is a very large retail facility which carries an

enormous range of products under one roof, including full lines ofgroceries and

general merchandise. In theory, hypermarkets allow customers to satisfy all their

routine weekly shopping needs in one trip.

Asupermarket, also called a grocery store in some parts ofNorth

America

, is a self-service store offering a wide variety offood and

household merchandise, organized into departments. It is larger in size

and has a wider selection than a traditional grocery store and it is

smaller than a hypermarket or superstore.

Aconvenience

s

tore is a small store or shop that sells items such as candy, ice-cream, soft drinks, lottery tickets, newspapers and magazines, along with a selection

of processed food and perhaps some groceries. Stores that are part of gas stations

may also sell motor oil, windshield washer fluid, radiator fluid, and maps. Often

toiletries and other hygiene products are stocked, and some of these stores also offer

money orders and wire transfer services or liquor products. They are often located

alongside busy roads, in densely-populated urban neighborhoods, at gas/petrol

stations or near railway stations or other transportation hubs. In some countries mostconvenience stores have longer shopping hours

, some being open 24 hours.


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Pictures

Supermarket Hypermarket Convenience st


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Retail players in France

Auchan

Casino Guichard

Wal-mart


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World presenceCountry First store Hypermarkets Supermarkets Hard Discounters

China 1995 134 - -

Indonesia 1998 61 14 -

Bahrain 2008 1 - -

Japan 2000 7 - -

Jordan 2007 1 - -

Kuwait 2007 1 - -

Malaysia 1994 12 - -

Oman 2000 2 - -

Pakistan 2009 1 - -

Iran 2009 1 - -

Qatar 2000 3 - -

Saudi Arabia 2004 11 - -

Singapore 1997 2 - -

Syria opening at 2012 1 - -

Taiwan 1989 48 - -

Thailand 1996 25 - -

United Arab Emirates [3] 1995 11 2 -


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World presence in France


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Background of the company

1959-France based Co. started 1965-Open 1st hypermarket in Sainte-Genevieve-des-Bois in France

It has 12 exit points, 400 parking points and 2500 sq.m floor area

1969-1st Global venture in Beligium under brand Champion.

1970-Share listed on Paris stock exchange

1972- Established 1st store in UK and Italy

1973- 1st hypermarket in Spain under brand Pyera 1975- 1st hypermarket in Brazil

1980- Presence in Eu, NA, SA and Asia

1990- Diversification into oil business by name Express Oil

1991-Aquired 2 French mkt chains-Euromarche & Montlaut

1996-Aquired Felix Potin ( Convenience store)

1997-Aquired Catteau (Super market chain)

1999-In Domestic Mkt- Aquired French retails group Promodes andstood #1 in Eu and 2nd in world behind Wal-Mart in terms global revenues.

Surpassed Wal-Mart in China wrt number of stores

2003-Total of5709 stores globally, including 720 hyper markets, 1426super markets, 3228 discount stores, 165 convenience stores and 170 cash

and carry stores under various brand names.


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Present status of thecompany


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Managing global supply chain operation i.e. standardization in business

systems and processes across the world

Establishment of SSC which significantly improve the efficiency of supply

chain

Advance technology to manage the supply chain processes like EDI, Crossdocking, RF equipment

Centralized procurement and distribution activities to reduce costs and

enhance distrn efficiency

Processes like procurement, warehouses, logistics like 3rd party logistics

Wh at w e wa n t t o u n d e r s t a n d b y t h i s c a s e?


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Basic model of procurement


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Managing supply chain

Procurement :

Followed Direct Procurement Strategy- 90 % local purchase fromlocal mfrs in all global mkt operations

Local purchase enabled company to keep its costs low as well asshorten its supply chain-Japan 40% depend on wholesalers

Uses EDI for procurement- requires electronic linking of storeswarehouses & suppliers thru computer n/w

Initially, used for receiving orders from stores and receive dispatchnotices which expanded EDI scope

It includes receipt of data related all products sold at the stores inform of product fact sheet and receiving notices of goods receipts

from the stores All products have standard reference codes-helped product dataavailability, maintain low inventory level and quick replenishment

Global expansion strategy-stream line and standardize businesssystems and processes. Hence, Co .installed IT s/w applications

Issue- Lack of IT application integration created problems in financiala/cing and order procurement


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Mit igation of problem

Initiated project Thales for common a/c ing and information systemplatform by creation of SSC in all operated areas

1999- Established SSCs in all countries which helped in centralizingprocurement activities by creating global data center that aided financialoperations, order consolidation, bargain for better price discounts

Due to this, CF was able to be in touch with suppliers about their orderstatus & used of PO Module

As all products purchased were given ref numbers, the financialtransactions involving accounting, tax & payment data became moretransparent.

Suppliers StoresSSC

Product infoCatalog info

Order status


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Advantages of SSC

Followed std financial process in all CF stores

Facilitated easier flow of information across Global supply chain and

created global data center

Reduce operating costs, labor costs and paperwork

Placing consolidated orders and hence bargain for better pricediscounts


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Efficient logistics management followed to reduce distribution costs

Put in place of state of the art logistics infra, comprising import

platform, separate warehouses for groceries & non-edible items and

splinter platforms for movement of fresh products

Reduced transportation cost to reduce products sale prices

Hired

3PL solution provider to benefit their local mkt business

knowledge e.g. 1) Excel Logistics in Spain, Belgium, South Korea and

France

2) Norbert Dentressangle in Czech Republic

Cross docking enabled Carrefour to replenish stocks at stores quickly

Inventories kept at optimum level caused substantial reduction in

storage cost

Logistics :


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Cont inuat ion

Before Restructuring After Restructuring

Logistics units organised on the basis of

industry sectors

Combined single unit on a national

scale

vertical structureLaunched A for A order system for

food items


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Basic model of warehouseuppliers Plants Warehouses Markets


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Hired 3rd party supply chain solutions provider Cotia Penske

Established main DC in Santa Paolo which handled 36000 items,

catered to hypermarkets and stores within 700-800 km radius and

remaining stores covered by smaller DCs, handled 40 m cases

Separate SC for frozen food products and for Dia brand discount stores

WMS developed to handle massive volume of goods; taking order,

schedule deliveries from center to stores and get in touch with suppliers

regarding shipment of goods

RF equipment installed to scan bar coded products before entering into

center which helped to track

IT systems integration between Carrefour and Penske helped to

monitor the activities closely.

Penske responsible for smoother flow of goods, time scheduling,

planning loads and optimum capacity utilization in trailers

Warehouse :


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CF followed and WMS regularly monthly manager meeting with

Penske to rank the suppliers use of 13 indictors

Centralization of distribution & WM activities leading to reduce stock

level at DCs which enabled to keep increased variety of goods in short

time

Bar coded scanner enabled product data leading to trace expiry dates

of goods & better control over merchandize- 99.97% inventory accuracylevel & 99.89% accuracy of store orders

Shipment of goods from suppliers controlled by Penske while

movement of goods from DC to stores controlled by CF, had separate

arrangements with other transports for this purpose

Goods availability at right place, at right time increasing customer

satisfaction and revenues 2003- stood as 2nd largest retailer with n/w of 96 hypermarkets, 122

supermarkets, 100 Dia discount stores and 7 DCs.

Cont inuat ion


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What is the new

in it iat ive takenby CF ?


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