Carrefour: Managing the Global Supply Chain
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Case Details:
Case Code : OPER033
Case Length : 12 Pages
Period : 1990 - 2003
Organization : Carrefour
Pub Date : 2004
Teaching Note :Not Available
Countries : France
Retail ing
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"To embrace the challenge of building a worldwide company,
not only geographically international, but truly global in vision, leveraging
each country's experience as we optimize our resources and technology."1
- Carrefour's Global Vision, Annual Report 1997.
"Carrefour is the world's most successful international
retailer. Wal-Mart has no track record outside North America."2
- Jaime Vasquez, an industry analyst at Salomon Smith Barney
(SSB) in London.
Introduction
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In the late 1990s, France based Carrefour Group (Carrefour), the second largest
retailer in the world (Refer Exhibit I for the company's financial performance)
embarked upon a $170 million project to standardize its business systems and
processes across the world.
Among other activities, the project involved the institution of shared service
centers (SSCs) in each country in which the company operated, so that various
activities such as purchasing and management of suppliers could be conducted at
a single location. Analysts said that by establishment of SSCs, Carrefour would
be able to significantly improve the efficiency of its supply chain.
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Carrefour used advanced technology to manage its various supply chain processes
including procurement, logistics and warehouse management. The company used
cross docking and radio frequency equipment to transport the goods quickly
from warehouses to the retail stores.
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Carrefour
also embarked upon an exercise to centralize its procurement and
distribution activities in the late 1990s. This exercise covered all its
global operations so as to reduce costs and enhance distribution
efficiency.
The company relied on third-party logistics providers (3PLs) to manage
its supply chain in most of its global operations.
It had global and regional tie ups with reputed firms for this purpose.
Analysts felt that by managing its global supply chain operations well,
Carrefour had emerged as one of the leading retailers in the world. |
Carrefour: Managing the Global Supply Chain
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