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Success Stories - CARREFOUR MAF
Interex Balkans operates in 3 Balkan countries and plans to open other countries
in the very near future.
PARTICIPANTS
#2 worldwide in Retail, Carrefour maintains a solid pattern of growth and profitability. Majid Al Futtaim group wasassociated with Carrefour group for the purpose of developing the concept of hypermarkets in the Middle East.
RELEVANT FIGURES
~ 700 millions euros
Consolidated Sales for UAE, Oman, Qatarand Egypt for the year 2002
1995
Opening first hypermarket (Dubai - UAE)
2002
4 countries: UAE, Egypte, Qatar, Oman /12 hypermarkets
2004-2006
6 new countries: Lebanon, Syria, Jordan,Kuwait, Bahrain, Saudi Arabia / 30hypermarkets
100 000 products
Number of item references managed intotal
55 000 products
Minimum number of item referencesmanaged by store
CONTEXT
In the general framework of an all-out redefinition of organizational processes (accounting, orders, merchandiseacquisition, follow-up on purchases and sales, billing, supplier negotiation, unification and standardization ofinformation systems), Carrefour MAF was looking for modular and open-ended solutions that could take up a key rolein the restructuring task.
Identified needs are twofold
- Set up a group referential.
Each country had its own referential.
Listed data lacked uniformity.
Consolidation at various structure levels were laborious if at all possible.
- Redefine a purchases-monitoring process based on a "mixed" organization.
Purchases management is decentralized: Each country, or even each store manages its ownnegotiations.
It is not possible for the group to exercise any influence in international negotiations
The group has no visibility on store actions:
- It is not possible to follow up on negotiations based on store's real TO.
- No margin or purchase TO analyses are available.
- Information exchange among various organizational levels are not fully reliable.
IMPLEMENTATION
General definition of metier processes
- Implement: ibs REFERENTIAL and ibs DEALS at the core of the organizational strategy.
- Define the role of each participant and each entity for an optimized and reactive purchases control.
- Allow a "mixed" purchases organization providing for store involvement in managing sales and billing.
- Define a project perimeter providing for short-term results and mid-term evolutions.
Referential
- Unify supplier management
- Redefine and standardize product set management
- Identify international suppliers and create a unique suppliers/product sets base
- Preserve specifics of each entity
Deals
- Audit information of back-office systems
- Proof and validate purchases TO. Align them with accounting sales
- Implement purchasing methodology
- Automate processes and information flows
ORGANIZATION
HQ
- Management of a single base for international suppliers and reference product groups
- International negotiations
- Follow-up on national and international contracts
- Consolidation of purchases and sales Tos
- Analyses of all-country margins
Country
- Management of country referential
- National negotiations
- Complement to international negotiations
- Follow-up on national and international contracts
- Country-level purchases and sales consolidation
- Country-level margin analyses
Store
- Integration and validation of purchasing sales - accrual - billing Private label analyses
Group’s Agenda
- Organizational structure - ibs DEALS
Implementation of mixed model
Definition of elements
Control of purchasing process
- Data reliability / flow management: - ibs REFERENTIAL
Data quality
Redundancy avoided
Information shared and consolidated at all levels
- Automation of information flows - ibs DEALS
More control
More coherence
- Visibility and flexibility - ibs DEALS
Diffusion of information
Follow-up by group and by country
Level of secured access adapted to group/country/store and to Merchandise Structure
- Purchases performance - ibs DEALS
Improvement of negotiations
International negotiations
National negotiations
- Time savings - ibs DEALS
Task automation
Automatic consolidation of purchases, sales and margins
Automatic billing
Redefinition of efficient processes
- Evolution
Natural integration of new countries
For more detail information, please view the following PDF:
- Carrefour MAF - Soft Solutions : ibs Deals - ibs Referential