Carrefour: Managing the Global Supply Chain

Carrefour usually followed a 'direct procurement strategy' acquiring food products and other goods directly from the manufacturers. The company purchased goods from local manufacturers in all the global markets in which it operated. Approximately 90% of the goods at Carrefour stores in developing markets were procured locally. Explaining the rationale, Daniel Bernard (Bernard), Chairman and CEO of Carrefour said, "Retail is the image of the country in which it lives. You have to adapt your food and other products to the local culture." Local purchases enabled the company to keep its costs low as well as shorten its supply chain. However, in a few countries, for instance, in Japan, Carrefour depended on wholesalers for almost 40% of the items supplied to it.

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 tied up with See Beyond to 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...