On October 23rd, 2014, we updated our
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Global Supply ChainGoals - Efficient cost-structure - Customer-orientated product & better competitivenessStrategy Use of IT systems which provide control over global operations
Walmart vs Carrefour #1 VS #2
Brief background Walmart Carrefour - 15 countries - Largest retailer in Europe and - Impressive network of suppliers the second largest retailer in the Key Facts => 6000 factories located mainly world in China - 480.000 employees - 2.100.000 employees Providing low-cost and Be the preferred retailer in the Strategy standardized goods to consumers. every region in which it operates. Technological Superiority Operating globaly acting locally - Long-term relationships with its - Knowing and serving theirCompetitive global suppliers customers better with quality, Advantage - Empowering employees with customized offerings. advanced technology in the - Fast follower in terms of business process technology
Supply chain analysis - Carrefour Focused on customer needs Not as cost conscious as Walmart Focussed on efficient globally adaptable processes Shorten the supply-chain by bypassing intermediaries Develop local products purchasing from local suppliers and selling private labels => Please authorities + meet customers’ needs
Procurement process – Common featuresElectronic data interlinking technology (EDI) Exchange business directly without any human intervention Documents are all standardized through the system
Procurement process – Common featuresCollaborative Planning Forecasting and replenishment Improve demand anticipation and enable more realistic planning
Procurement process – Common featuresVendor managed inventory (VMI) Improvement supply-chain efficiency by: - Reducing stock levels and transport costs - Improving service levels - Sharing inventory related risksB2B Collaboration Build collaborative partnerships with suppliers and reap the benefits of customized on-time delivery through EDI, ABC and JIT delivery
Procurement – Walmart vs. CarrefourWalmart - Supplier Operational Procedures 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 Wal-Mart guidelinesCarrefour - Procurement Centres Regional procurement centres => Managers place orders for local goods in line with the company’s strategy of customization
Warehouse Management: Walmart vs CarrefourWarehouse management systems (WMS) Control the movement and storage of materials Enhanced by standardized packaging & smaller standardized pallets Benefits: - Ability to utilize space better - Reduce stock levels while increasing SKU variety - Ensure accuracy of inventory management - Respond quicker to changing customer needs - Eliminate the risk of stock-shortages
Warehouse ManagementRFID Technology Enables a more accurate pallet tracking & traceability of goods Integrates warehouse information into the ERP system Reduces labour costs and facilitates knowledge sharing
Warehouse ManagementCross Docking Logistical practice that cuts down warehouse costs and increases firm responsiveness to customer needs
Distribution ProcessWalmart 3500 self owned trucks Latest tracking equipments Multi-channel distribution strategyCarrefour - Third-party Logistics (3PL) and consolidation centres Various ways of transporataion Provide 3PL vendors with dashboards The Generix group provides this collaborative solution
Core Management Issues - Going Green Reuse: • Transportation • Pallets Constant Employee TrainingRecycle: Reduce:• Reverse • Green Transportation Logistics • Zero Waste Tolerance • Emissions • Carbon Footprint
Core Management IssuesEnsuring ethical business practice throughout the supply-chain Business processes/interactions guided by global anti-corruption policies A global ethics officerMaintaining sustainable operations downstream and upstream Operational activities guided by zero waste, the use of renewable energy Suppliers and distributors are offered assistance to make their operations compliant Innovative technology to cut emissionsEnsuring consistency and efficiency in operational activities Compliance with global best practice standards such as ITIL, ISO14001, COBIT, EDI and CPFR SOPS are in place and updated regularly Processes are standardized; e.g. standard packaging and pallets are used
Core Management IssuesPerformance management Regular audits conducted: ensure suppliers maintain the required standards Performance is monitored to ensure the goals of the suppliers and distributors is aligned with the retailers strategic objectives Carrefour’s performance score-card for Unilever
Core Management IssuesContinuous improvement Staff is trained on an on-going basis to ensure they are up-to-date with best practice within the industry e.g. the latest food standardsProduct safety and Quality Regular audits are conducted to ensure products conform to the global safety and quality standards Both retailers make use of lean six sigma
Core Management IssuesFast and efficient product removal – design for TRACEABILITY On-call system enables suppliers and retailers to communicate directly with the quality department Quality department works directly with supply-chain managers Crisis team is setup to manage the withdrawal of the defective product
ConclusionA supply-chain that enables internationalization requires: Supply chain integration and flow logistics Risk Sharing and collaboration Strategic alliances Performance monitoring Sustainable operations and practices Adherence to global standards Training Reverse Logistics (traceability)The successful implementation of these processes is dependent ontechnology, the training and buy-in of all people involved and adherence toglobal standards and best-practices.
ConclusionGlobal supply chain management is a beautiful, beautiful thing! Questions?