OM Carrefour

8/7/2019 OM Carrefour

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Prepared by:Kashish Goyal (191028)

Padia Archin Ramakant(191039)

Prateek Jain (191044)Rahul Singh (191047)Rohit Goyal (191049)

Nikhil Valechha (191060)


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y I ntorduction/History y Supply Chain Management

y Inventory Management Systemy Logistics

y Cross Dockingy RFI Dy SWOT/Strategy y Comparative Analysisy Queries Session


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IntroductionCarrefour is an international hypermarketchain, headquartered in France.

I

t s the largest retailer in Europe andsecond only to Wal-mart in the world.

Has over 15000 stores, either company-operated or franchises.

Presence in 35 main countries


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Strategic orientation

Client-orientedculture

To know customers better in order to serve them better In stores, the Carrefour brand will be conveyed in a way that iscloser to the customer and more emotionally involving.

T ransformation

To increase agility, execution quality and competitivenessSharing of knowledge and best practice will form the heart of this transformation process,

Innovation

To regain initiative and leadershipto make the store experience exciting again, to win or regain thehearts of all customers.


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Ope ration Format

Hypermarket Supermarket

HardDiscount ConvenienceStores


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Walmart, 33%

Carrefour , 11%

Home Depot , 9%Metro , 8%

Ahold , 7% Tesco , 7% Krogers , 7%Sears , 6%

REWE , 5%

, 0 , 00%

5%

10%

15%

20%

25%

30%

35%

Walmart Carrefour Metro Ahold Tesco Krogers Sears REWE

W orldwide Market Share


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y It is the largest hypermarket chain in terms of size.y It is the second largest hypermarket chain in terms of

revenue.y It is the third largest hypermarket chain in terms of

profit.


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y The SCM plays a big role in this success story.

An efficient supply chain that ensures products are onthe shelf, available for sale, when Shoppers come to buy them ... all the time.

CARREFOUR has been able to achieve this.


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Key ele m e nts of SCM strat egy at

Carr e fourIdentified 30 suppliers that account for 65% to 70% of our business.

Private Labels around 400 product categories

Reducing global inventory Savings of $183 million / year

y 60% of the company's inventory is now controlled andco-managed by key vendors.


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Tw o major parts of SCM


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CPFR

CRP --Continuous replenishmentprogramDRP--Distribution RequirementsPlanning.

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Logisticsy the process of planning, implementing and controlling

the efficient, effective flow and storage of goods

and services, and related information from thepoint of origin to the point of consumption for thepurpose of conforming to customer requirement.


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LOGIST ICS:OLD AND NEW


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LOGIST ICS:OLD AND NEW


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Cross Docking


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Advantagesy Streamlines the supply chain from point of origin to point of saley Reduces handling costs, operating costs, and the storage of inventoryy Products get to the distributor and consequently to the customer fastey Reduces, or eliminates warehousing costsy May increase available retail sales space.


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Cross docking working and priciples


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Cro ss d ocki ng At C a rr ef ou

When- 24th Oct. 2007W

hy-As part of a larger re-structuring scheme,Carrefour is moving its logistics system towardscross docking in order to reduce stocks, with all o

French distribution centres currently converted tothe new concept in a scheme that will stretch out i2009 or 2010.


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Impl e m entat io n o f Cro ss d ocki ng

y the focus initially lies on fresh foods,

although eventually Carrefour plans toinvolve all product categories.Simultaneously, the retailer is upgradingIT systems to make sure orders can beplaced at the optimal time.


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A ppl ic at io n at C a rr ef our


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C arref r e p loys the ew FID tech ology to verif y the i f o r ati on s pp liers pr ovi eon the c on te n ts o f each n it b y rep laci ng thetra iti on a l bar c od e with a ra d io- activate d labe l and ti lizing the expa nd e d data itpr ovides ( date a nu fact u re d, "best bef o re"date , etc.).


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1 . Se curit y conc e rns2. Proximit y Issu e s3. High Costs

4. Unr e ad ta gs


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y Definition : Production of standard componentsand subassemblies, which are held until late in

the process to add differentiating features.

Delayed Differentiation


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Adv antages of Delaye d DifferentiationH elps in Resolving Marketing Complexity.

Reduces the costs of uncertainty through lower inventory levels, less stockouts and reduced inventory

handling costs.

Increasing the efficiency of the supply chain

Reduces business complexity.

Allows Mass-Customisation of products

Appealing to the customers desire of Variety and speed

of delivery.


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P ro du ct S u itable for Delaye d

Differentiation


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Delaye d Differentiation is us e d at

com pani e s


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Delaye d Differentiation in case of

Carrefo u r1. Purchasing Locally was one of the Carrefour s

Key Strategy.2. Carrefour used it as way to please Local

authorities and meet customer needs.3. Especially in case of fresh products like

B utchery, B akery and perishable products.4. Helped Carrefour in satisfying regional

specialization at its different stores.

1. urc asing ocally as one of t e Carrefour s ey trategy.

2.Carrefour used it as ay to please ocalaut orities and eet custo er needs.3. specially in case of fres productsli e B utchery, B akery and perishable products .4.Helped Carrefour in satisfying regionalspecialization at its different stores.


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Com parativ e AnalysisParameter Carrefour W almart Tesco

No. of Employees

475,976 21,00,000 4,72,000

Revenue Euro 85 Billion $ 400 Billion Euro 62 Billion

OperatingIncome

Euro 1.7 Billion $ 23 Billion Euro 3.4 Billion

Origin European American United Kingdom

T hird Party Logistics

No 3rd Party Logistics

Uses 3rd Party Logistics

Uses Isotraksystems 3PL

Private Labels Marketed asCarrefour

Marketed underdiff names

Marketed UnderDiff names

Vendors Mostly local Mostly Global Mostly local


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Stre ngthsCarrefour is the largest hypermarket chain in terms of size.

Ranked third in terms of profit in the industry after Tesco and Wal-mart.

Second Highest revenues in the retail industry after Walmart.

Joint ventures in different countries

Large network of Discount, grocery and convenience stores, cash andcarry, hypermarkets.

Pioneer in hypermarkets especially in France.

Strong brand in the world of retail industry.

ore than 5 sales of the company come from France.

Operating in 31 countries.


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We akn e ssReduce operating expenses.

Weak position in Asia and Middle east countries

Labor relations

Taking too much time in opening new stores.

Has not been able to attract Japanese customers

Weak own brand sales

Poor E-commerce performance.


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Opp ortunit y Joint ventures and acquisition for more expansion

Discount stores development

I mprove sale performance

Reduce operating cost

Researc and development required in mar eting area to understand t edynamics of different segment.

Maintain better labor relations


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Th re ats

Fierce competition

Wal-mart low prices is the biggest threat for Carrefour.

Terrorism and instability in few countries of Asia and Africa.

New player are entering into retail industry

Facing Difficulties to understand the dynamics of Asian andMiddle East countries.

Slow expansion outside France may allow the competitors tosnatch the market share.


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OM Carrefour

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