In most successful entities such as Carrefour, the product mix is directed towards more organic produce. "Such organizations are committed to improving their operational efficiency, investing in growth formats, building an efficient omnichannel model, and developing their organic products" (Brewer, Button & Hensher, 2008, pp. 15). Carrefour offers a wide range of quality products at the best possible price. The company has built an adaptive supply chain with rapid planning and integrated execution that will ensure that consumers get the right products at the right time (Child, 2006). The management enhances collaboration across the value chain, including predictable and reliable supply and sourcing and accelerated decision-making with better support. Furthermore, the administration uses employees' initiative, skills, and team spirit to meet the needs of consumers better and to create a conducive environment.
There are a number of questions the management of entities such as Carrefour should answer if they want to develop a strategy that is in line with the company's goals and objectives. For instance, the management should answer whether the logistics strategy effective, whether it support the business strategy, and whether it is well understood across the business. Carrefour provides suppliers with the support they need to improve their own social responsibility policies. To provide consumers with high-quality products manufactured locally, the company introduced 'produits libres' which was also meant to ensure respect for human rights and that all suppliers comply with the principle at all time. In this company, the supply is based on the industry framework; demand variation, market mediation costs, product lifecycle, and managerial focus.
Every year, Carrefour organizes training programs for its suppliers (Child, 2006). This will ensure that it complies with various commitments. The company has developed a more responsible sourcing policy in an effort to reduce the impact the business has on the environment and to preserve biodiversity. In this regard, it chooses producers and manufacturers who are required to comply with strict specifications such as product presentation and labeling (Child, 2006). The company is also committed to optimizing product designs and product management for manufacturing, supply, and sustainability. It has aligned its supply chain with business goals by integrating operations planning with corporate business planning. Ideally, this is meant to provide real-time visibility to supply, product, risk, performance, and demand throughout the extended supply chain (Christopher, 2016). In 2006, Carrefour developed an online-self logistic tool which made it possible for the suppliers of own-brand products to showcase their items in various nations. The tool also guaranteed suppliers' long-lasting growth.
The company focuses on the 'right product in the right place at the right time.' This must be measured from the customer's point of view. The supply chain strategy of the organization is also meant to increase product rotation meaning there is always the need to manage the information and merchandise flow favoring suppliers' stock concentration (Christopher, 2016). The direct supply chain policy adopted by various Carrefour hypermarket provides consumers with a wider choice (Hurt, 2002). The policy guarantees product quality and freshness since there is a direct relationship between stores and producers. Most producers in France encourage customers to purchase locally especially through the development of regional brands.
For the past five years, the focus has been on the supply chain-oriented to efficiency. To accomplish end-to-end efficiency, "Carrefour ensured high rates of asset utilization with high overall equipment efficiency. It also ensured high levels of forecast accuracy to guarantee product availability" (Christopher, 2016, pp. 13). The management has embedded sustainability into supply chain operations in an effort to ensure continuous improvement. Normally, sustainability is a key requirement across all supply chain processes and it helps to achieve competitive advantage especially with regard to supplier management strategies and production efficiency.
The company is also committed to promoting and protecting flow to meet the target service level while at the same time minimizing inventory. "Normally, success depends on synchronizing procurement strategies and for an entity like Carrefour, there is the need to adopt a supply chain that maintains a clear focus on the required outcomes and can easily be adjusted to maintain supply chain performance" (Waters, 2011, pp. 20). Moreover, the focus should be on the supply chain strategy that reduces costs and improves customer service. This calls for the supply chain-oriented to responsiveness and a strong collaborative relationship.
Carrefour set rules that compel traders to commit an extra discount on the second month of operation as well as fee when they stock new items. This is likely to threaten its smooth entry into various regions around the globe. There are also contractual aspects regarding suppliers' environmental, ethical, and social commitments. The contractual terms include various commitments such as health and safety, business ethics, respect for freedom, working hours, and environmental protection among other commitments (Jacoby, 2014). The supply strategy also involves information sharing (order, invoice, and product sheet). Suppliers are advised to standardize data exchange in an effort to increase on-shelf availability (Jacoby, 2014). The objective of the management is to increase sales and lower costs of shelf delivered items (shelf ready packaging).
Brewer, A. M., Button, K. J., & Hensher, D. A. (Eds.). (2008). Handbook of Logistics and Supply-Chain Management. Emerald Group Publishing Limited.
Child, P. N. (2006). Lessons from a Global Retailer: An Interview with the President of Carrefour China. McKinsey Quarterly, 2(I), 70.
Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.
Hurt, S. (2002). The Carrefour Group-the first 25 years. Retailing: Critical Concepts. 3, 1. Retail Practices and Operations, 78.
Jacoby, D. (2014). Guide to Supply Chain Management. Hachette UK.
Waters, D. (2011). Supply Chain Risk Management: Vulnerability and Resilience in Logistics. Kogan Page Publishers.
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