1. Global Retail Supply Chain Design
Analysis: Wal-Mart and Carrefour
Gavin Miller
Jana Bruninghoff
Kerensa Govender
Kym Aboyami
Marie-Agnes Pigot
Nomonde Nyathela

2. Agenda
Introduction
I) Global supply chain
II)Walmart / Carrefour : Brief background
III) Supply Chain Analysis
IV) Challenges / Next steps Core Management Issues
Conclusion

3. Introduction

4. Global Supply Chain
Goals
- Efficient cost-structure
- Customer-orientated product & better competitiveness
Strategy
Use of IT systems which provide control over global operations

5. Walmart vs Carrefour
#1
VS
#2

6. 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 their
Competitive global suppliers customers better with quality,
Advantage - Empowering employees with customized offerings.
advanced technology in the - Fast follower in terms of
business process technology

7. Supply chain analysis - Walmart
 “Best-in-market” supply chain strategy
 Focused on low prices / Strict low cost procurement strategy
 Regional approach
 Sophisticated Supply Chain => technological superiority

8. 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

9. Procurement process – Common features
Electronic data interlinking technology (EDI)
 Exchange business directly without any human intervention
 Documents are all standardized through the system

10. Procurement process – Common features
Collaborative Planning Forecasting and replenishment
 Improve demand anticipation and enable more realistic planning

11. Procurement process – Common features
Vendor managed inventory (VMI)
 Improvement supply-chain efficiency by:
- Reducing stock levels and transport costs
- Improving service levels
- Sharing inventory related risks
B2B Collaboration
 Build collaborative partnerships
with suppliers and reap the benefits of customized
on-time delivery through EDI, ABC and JIT delivery

12. Procurement – Walmart vs. Carrefour
Walmart - 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 guidelines
Carrefour - Procurement Centres
 Regional procurement centres => Managers place orders for local
goods in line with the company’s strategy of customization

13. Warehouse Management: Walmart vs Carrefour
Warehouse 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

14. Warehouse Management
RFID Technology
 Enables a more accurate pallet tracking & traceability of goods
 Integrates warehouse information into the ERP system
 Reduces labour costs and facilitates knowledge sharing

15. Warehouse Management
Cross Docking
 Logistical practice that cuts down warehouse costs and increases firm
responsiveness to customer needs

16. Distribution Process
Walmart
 3500 self owned trucks
 Latest tracking equipments
 Multi-channel distribution strategy
Carrefour - Third-party Logistics (3PL) and consolidation centres
 Various ways of transporataion
 Provide 3PL vendors with dashboards
 The Generix group provides this collaborative solution

17. Core Management Issues - Going Green
Reuse:
• Transportation
• Pallets
Constant
Employee
Training
Recycle: Reduce:
• Reverse • Green Transportation
Logistics • Zero Waste Tolerance
• Emissions
• Carbon Footprint

18. Core Management Issues
Ensuring ethical business practice throughout the supply-chain
 Business processes/interactions guided by global anti-corruption policies
 A global ethics officer
Maintaining 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 emissions
Ensuring 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

19. Core Management Issues
Performance 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

20. Core Management Issues
Continuous 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 standards
Product 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

21. Core Management Issues
Fast 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

22. Conclusion
A 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 on
technology, the training and buy-in of all people involved and adherence to
global standards and best-practices.

23. Conclusion
Global supply chain management is a beautiful,
beautiful thing!
Questions?