Carrefour has a very advanced supply chain management system and it allows the company to manage its global operations. The company has successfully differentiated its brand name and it helped the company to increase its revenue and establish a strong database of loyal customers. Today, we’ll discuss Carrefour supply chain management; its supplier relationship management, and how it is using technology to improve relationships.
Some of the key statistical facts and figures about Carrefour Supply Chain Management;
- Carrefour started operating its business in 1958
- Has a network of 1200 supermarkets and 3245 convenience store
- Approximately 500,000 employees are working for the company
What is Carrefour Supply Chain Management?
Carrefour employs the latest technological tools and software to deal with its supply chain processes and operations like warehouse management, logistics, and procurement. The supermarket brand employs radio frequency and cross-docking technology to move and transport goods and products from the warehouse to the retail stores. Usually, Carrefour employs 3PLs (third-party logistics service providers) to deal with its global SC operations.
In order to satisfy the needs and wishes of customers with products and services, Carrefour requires an efficient and effective SCM system. Launching SCM and a logistic system would help the company to amplify the response rate relevant to the needs and wishes of customers.
Benefits of Carrefour SCM
Effective implementation of SCM benefits the supermarket Carrefour in the following ways;
- Amplifying the quality standards
- Knowing what products to sell to the customers
- The specific product line for the branded product line
- Providing products that meet quality standards
- Improving coordination among various departments like warehousing, transportation, sales, and procurement
- Maximizing efficiency and effectiveness of the retail functions
- Developing comprehension of various processes
Carrefour Supplier Relationship Management
The growth and success of SCM rely on developing stronger supplier relationship management. Some of the main elements of Carrefour supplier relationship management are as follows;
Transactional connection is the main element of developing a relationship with the supplier. It is a type of relationship that focuses on sharing goods and products within a certain time at a specific price. Carrefour should establish such relationships for the sale of perishable goods and products.
The transactional relationship helps you to identify the time-sensitive products, and deliver them at the specific time at the right time. However, managing the long-term relationship with the suppliers would require you to establish a trusting bond with them.
Carrefour establishes collaborative relationships with its suppliers to meet the expectations of the delivery service and develop value with SCM. The collaborative relationship focuses on adding value to the products and developing beneficial relationships between companies and suppliers.
However, it makes sure that the company receives value from processes and systems from the tech vendors. Such relationships are highly relationship because it automates the company’s operations.
The company shifts the responsibility by completing the order fulfillment. Instead of centralizing SCM processes, the company gives the SCM control to the managers by giving order fulfillment input. However, it is a successful SCM strategy for the company’s stores and supermarkets.
Carrefour Employing Technology to Improve Relationship
Carrefour employs various IT tools and applications to improve the supplier relationship in the SCM. Many researchers and experts have pointed out the role of IT (information technology) in amplifying the supplier relationship. Some of the key areas supply chain areas of Carrefour that have taken advantage of the usage of technology are as follows;
- Supplier relationship
- Supplier governance and management
- Supplier segmentation
Automation technology simplifies various processes and operations. You can employ IT tools and applications to recognize the right suppliers at the same time. It allows you to amplify the efficiency and effectiveness of SCM processes. The role of IT doesn’t stop here; rather it focuses on developing a simple communication channel that allows Carrefour to remain in touch with suppliers. However, it develops such a payment method that is acceptable for both parties.
Transparency & Visibility
The reason various IT tools and applications support supplier relationship management is that it amplifies visibility and transparency in the contractual relationships of suppliers. It is highly beneficial for developing a strong relationship between Carrefour and its suppliers. However, transparency promotes trust and confidence, and it is the foundation of strong supplier relationships.
The benefits derived from the usage of technology amplify the supplier relationship. The reason supplier relationship doesn’t receive a lot of emphases is because companies don’t fully comprehend the significance of supplier relationship and how it is beneficial for both parties.
Conclusion: Carrefour Supply Chain Management
After an in-depth study of Carrefour supply chain management; we have realized that Carrefour is the world’s leading organization that develops better supplier relationships. If you are learning about Carrefour supplier relationships and SCM processes, then you should keep in mind the abovementioned factors.
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