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Success Stories - CARREFOUR
Carrefour - Soft Solutions : ibs DEALS - ibs PRICING
PARTICIPANTS
The Carrefour Group is active in 32 countries throughout the world with different banners and formats. The group hasachieved second place on the international retail scene.
A FEW NUMBERS
- N1 of the retail sector in Europe
- N2 of the retail sector worldwide
- N1 in 9 countries
86 billion euros
This is Group Carrefour's global sales turnover (includingtax)
Over 9000 points of sale worldwide
Context
1997
- Carrefour France and Soft Solutions collaborated in two strategic areas: Purchasing and the Pricing strategy.Shortly after, all buyers (more than 100 users) of the Purchasing Center in Evry were using ibs DEALS.Simultaneously, the 120 French stores were benefiting from ibs PRICING.
1999
- Stimulated by the positive results recorded in France, Poland became the spearhead into the rest of Europe.
2000
- Based on these 2 successes, the Group decided to standardize both its Purchasing negotiation systems and itsPricing strategy systems, in every country where it was established.
- In December 2000, a worldwide contract was signed between Carrefour Group and the editorSoft Solutionsregarding both ibs DEALS and ibs PRICING.
- The first implementation sites are European (Europe-excluding France, ranking second in T/O contribution)Czech Republic, Turkey, Greece and Poland (standardized version). Korea was added to this first list as a pilotfor Asia.
Since then
The system standardization was extended to Switzerland, Slovakia, Mexico and Dubai (United Arab Emirates)Brazil is under examination, and the next steps planned concern Colombia and specific Asian countries.
Implementation
Globalization results in making Purchasing and Pricing issues strongly dependent from geography. ibs DEALSand ibsPRICING have adapted to local specificities:
Starting with country maturity
- Objectives differ depending on first implementation or significant historical presence.
The economic context
- Turkey with its daily inflation is a good case.
The competitive context
- Competitive intensity is diverse and global strategy needs to take this into account.
The human context
- Local business rules need to be considered. At the technical level, when integrating data through ibs DEALS and ibs PRICING, many data quality issues wereidentified. A high level of data tracking capability guaranteeing end results, was facilitated by rigourous integrationprocesses of the 2 solutions.
Global Results for the Group
Time gains
- Due to ease of use, ibs DEALS and ibs PRICINGcombine richness and accessibility. The user interface is basedon the intuitive navigation principle and respects screen fluidity, clear and logical sequences, accessfriendliness.
More efficient Negotiations and more appropriate price strategies
- Consolidation of global group purchasing negotiations leads to a permanent improvement of internationalnegotiations while at the same time respecting national requirements. Price policy comparisons lead to a betterlocal market fit.
Increased visibility
- ibs DEALS and ibs PRICING share purchasing and pricing data between various players, and allows for aconsolidated view at headquarter level.
Organization
- Consecutive implementation steps allowed adjustments for the many roles performed in the purchasing centerand in the Pricing function definition. The organization and preservation of historical data helps with theintegration of newcomers.
ABOUT CARREFOUR
As the largest European retailer and second worldwide with 2004 annual revenues of nearly $110 billion in sales,Carrefour has been a part of the everyday life of tens of millions of customers in Europe, Asia and Latin America formore than 40 years. Carrefour combines hypermarkets, supermarkets, convenience stores and hard discounters tooffer the customer the greatest freedom of choice with the guarantee of the best quality/price ratio, whatever the storeformat. Strengthened by the commitment of its 430,000 employees and its franchisees, Carrefour pursues a policy ofsustained growth in a context of sustainable development, allowing everyone; customers, shareholders, employees,partners, the public sector; to share fully in its success. Visit the website at www.ibs-softsolutions.com
ABOUT SOFT SOLUTIONS
Soft Solutions is a leading provider of web-based retail merchandise management and decision support software. Ourcustomers are multi-divisional, multi-format Tier 1 retailers and suppliers including Carrefour, CVS, Canadian Tire Retail,Capelli New York, Auchan, Group Louis Delhaize, B&Q, Kingfisher, Pinault-Printemps-Redoute, and Galeries Lafayette.Soft Solutions ibs SUITE conforms to the latest industry and technology standards, including GS1, and is compatiblewith multiple databases and industry application server packages. With consistent delivery of measurable top andbottom line business results, Soft Solutions is uniquely positioned to provide global best practices and industry-leadingsolutions for the fast paced, competitive environment of retailers worldwide.
For more detail information, please view the following PDF:
- Carrefour - Soft Solutions : ibs Deals - ibs Pricing