Carrefour is an international retailer and the largest in Europe. It operates hypermarkets, supermarkets, discount stores, and convenience stores across Europe, Latin America, and Asia. Some key points about Carrefour include: - It has over 456,000 employees and annual revenue of €87 billion - It focuses on private label brands and uses technology to improve its supply chain operations - Carrefour aims to customize its operations in each local market to adapt to local conditions - It works to control costs and improve efficiency through strategies like direct procurement and supply chain integration

1. Benjamin Perraut Lalo Rodríguez Luiz Guzman Jose Mesado

2. Profile of the company and baselining

3. 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 There are four kinds of stores in Carrefour, including hypermarkets, supermarket, discount and convenience Europe, Latin America and Asia are operated in three main markets Introduction

4. 456 295 collaborators 87 billion euro Leader in Europe More than 3 billion passages Cash desk, a year, any formats N°1 Large distribution in France N°2 in the world distribution

6. Store’s sharing

7. Top 10 Worlddistributors

8. Cost of logistic

9. Strategies of the company

10. Simple products (Sale concentrated in wholesale and big retailers, Discounts for quantity) Control of raw materials ( proper brand) Pursuit of economies of scale in his technology Lowcost

11. Direct procurement strategy Acquiring food products and other goods directly from the manufacturers Approximately 90% of the goods at Carrefour stores in developing markets were procured locally Local purchases enabled the company to keep its costs low as well as shorten its supply chain in a few countries, for instance, in Japan, Carrefour depended on wholesalers for almost 40% of the items supplied to it

12. 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. 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... The New Initiative

13. Carrefour wanted to get rid of a part of its stocks, downstream His subcontractor Kuehne+Nagel isin charge of the management of a part of its supply chain Centers Consolidation and Collaboration (CCC) Logistic management

14. Principles of functioning: Flow of information Industrial Provider Business Management WEB PORTAL CCC WMS Business Management Management of referencial Management of supply CCC Management of command of Carrefour

15. Logisticsstrategies: WhatIs a LogisticsStrategy?

16. WhyImplement a LogisticsStrategy? Constantlychanges in chainsupply Toadapttotheflexibilityofthesupplychain Identifytheimpactofimminentchanges

17. Componentsto Examine whenDeveloping a LogisticsStrategy: Transportation Outsourcing Logistics Systems Competitors Information StrategyReview

19. Reduced stock

20. Increasethequalityofthesupplychain

21. Control thecostsoflogisticsoperationsNewtechnologies Carrefour’sLogistic:

23. SchedulerLogisticStrageties

24. Principles of fonctionement: physical flow

26. Micro and macroenvironment

27. Strengths Weakness Market leader Aggressive marketing and adaptable business model Brand recognition Focus on competitive prices Increasing cash flows from operation Stagnant sales in France Declining profitability Losses for Ooshop.com Threat Opportunitie Stiff competition from discount retailers in France Increasing labor costs in Europe Poor retailing outlook in the Eurozone Strong growth potential in Asia New stores Agreements with Coop Atlantique, Hyparlo and Finipe

28. 5 Forces of porter The threat of the entry of new competitorsHard-discount The threat of substitute productsE-commerce The bargaining power of customers/suppliersExtremely strong (carrefour can accept or not the product of his suppliers) 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)

30. Benchmarking: Carrefour VS Wal-Mart

31. Worldwide

32. Storeformats Carrefour Wal-Mart Hypermarkets Supermarkets Carrefour mini Hard discount stores Convenience stores Cash & Carry Walmart Discount Stores WalmartSupercenter Neighborhood Market by Walmart Supermercado de Wal-Mart Market-side Sam's Club

33. Low cost and Standardization Empowered employees using technology Long term relationship with suppliers No single supplier accounting for more than 2.4% Selective suppliers ( P&G & GE) Low transportation cost of 3% compared to industry average of 5% Manage own stocks and reduce pack sizes and timely priced markdowns A store devote only 10% of its square footage to inventory Wal-Mart strategy

34. Logisticsmanagement Carrefour Wal-Mart Uses 3PL when venturing into countries outside Europe like Brazil and China Move to ‘River and Rail’ transport to reduce truck mileage and safeguard the environment Average inventory is 37 days of COGS Minimizing Pallet size for effective inventory management Fast and responsive system Company owned transport fleet of 3500 trucks Replenish store shelves twice a week compared to industry average of every 2 weeks

35. Transportation Systems Carrefour Wal-Mart Owned+3PL system of transportation Fleet of 3500 self owned trucks Complete ownership of Transportation systems Moving forward Walmart is going to even recruit drivers who will drive the trucks All trucks equipped with latest tracking equipment's and are tracked via satellite

36. Technology as enabler Carrefour Wal-Mart ERP systems implemented by Carrefour backed by EDS Generix is the main Supply Chain Software provider. Integration of 3PL and logistics capabilities of Carrefour and suppliers Warehouse Management System Provided by Generix Was the one who pioneered bar codes in 1984 Out-of-stock items are replenished 3 times faster than before, 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

37. Procurement & Distribution Carrefour Wall-Mart Prefers local vendors and customizes product offerings to cater to local tastes Not as cost conscious as Walmart with vendors Procurement of goods bypassing all intermediaries Vendors selected only if they provide goods at lowest prices Significant amount of time spent in meeting vendors and understanding their cost structures Least shipping costs because of cross docking and other optimization

39. $14 Billion Net Income.

40. 2,100,000 employees, rated as 4th best in world.

41. Fleet of 3500 trucks.

42. No 3PL services taken.

43. Prefers Global Vendors.

44. Private Labels with different brand names.

45. Technology leader in industry.

48. Be abletopredictthefinancialimpact

49. Offerstrategiesthat can mitigatetheeffects of anydisruption of suppliesSupplychainrisk

52. Identifystrategicmaterials

53. Understandthestrategicsuppliers’ organizationAssessingthesupplychainvulnerability Evaluatingimplications Identifyingmitigationandcontingencyactions Analyzingcostsandbenefits Implementingactionsandmeasures Understandingandmanagingsupplychainrisks

54. In the future, Carrefour should be expanded on E-commerce influence Carrefour need to increase more Online Store sites Try to enter in new markets Use green logistics technologies Develop more efficient systems Carrefour future

55. Thankyou for your attention