1. Introduction – Supply Chain Management
Supply Chain Management in business operations refers to the activity of enhancement of the competitive position of business organizations in the industry, based on integration of market information with management of production and logistics (www.globalcsr.at).
1.1 Organizational Background – Carrefour
The organization was introduced to the industry in 1959 with the formation of the Carrefour Supermarket Company. Today, the operations are based in 34 countries through more than 10,000 stores make it the largest in Europe and Second largest retail organization worldwide (www.globalcsr.at).
2. Distribution and its role in Carrefour
Electronic Data Interchange (EDI) has helped the organization in improving supply chain management. The reported cost of the same was $170 million. At the same time, the organization is reported to involve third party logistics providers (3PLs) to manage distribution and logistics. Analysis of the role of the distribution system thus becomes necessary.
2.1 Importance of a Warehouse and distribution process
The operations are based on centralized distribution system whereby the commodities are transported to warehouses in different places. Apart from their own warehouses, in many countries like Brazil, the organization has developed strategic partnerships with warehouse space providers such as Cotia Penske, which also provides many distribution services to the organization. In accordance to the marketing intelligence, the inventory of diverse retail items of the company is carefully planned and maintained which help in a significant reduction of materials cost for the organization.
3. Material handling techniques in Carrefour – distribution in retail industry and Carrefour’s techniques.
The organization works in close association with key suppliers and it is reported that about 60% of the inventory is controlled and co-managed by the key vendors of the organization. The key vendors of the organization are entrusted with the responsibility with storage and release of merchandise of consigned inventories according to demands in the market. In this way, not only is the organization able to achieve effective distribution but also significant reduction in pressure related to inventory management (http://bo-portal-prd.carrefour.com).
3.2 Demand Management
Carrefour’s marketing department works in close supervision of the global market conditions for ascertaining demand and supply propositions. At the same time association with key suppliers in different parts of the global market ensures that the company is able to procure a comprehensive reflection of global demand patterns in retail and have an edge over competitors. This is due to local market intelligence provided by key vendors.
4. Management and Improvement of Customer Service in Carrefour
Customer services are an integral part of any retail organization (www.fpsc.com) and the same hold true for Carrefour as well. Ease of access, a fluid system involving 360° approach, customer driven renovations, inventory management according to customer needs are some of the customer service elements Carrefour incorporates.
5. Conclusion
The analysis reveals that supply chain management of the organization and customer services of the organization can be regarded to be the major pillars of success of the organization in the retail industry. The association of key vendors in the distribution system is regarded to provide the leadership in the industry. Sustenance and improvement of the same will help the organization to continue leadership in present markets and enhance the same in newer markets.
References
Carrefour. Company Website, 2014. http://bo-portal-prd.carrefour.com/act-for-you/new-customer-experience. Online. 7th June, 2014.
ICEP; CODESPA. Global CSR Cases, 2008. http://www.globalcsr.at/media/pdf/InclusiveSupplyChains_Carrefour.pdf. Online. 7th June, 2014.
Sugirin Michael. Financial Publishing Services. Deutsche Bank, 2011. http://www.fpsc.com/DB/TreasuryPulse/PDF/Q211_article1.pdf. Online. 7th June 2014.
