1. No category

"Carrefour and Unilever
deployment of a Global Supply
Chain Strategy"
Carrefour, a global presence in 26
countries
n°1 France
n°1 Spain
n°1 Belgium
n°1 Greece
n°1 Taiwan
n°2 Italy
n°1 Indonesia
n°1 Brazil
n°1 Argentina
•
•
•
•
561 hypermarkets
1324 supermarkets
2611 deep discounts stores
788 other store formats
More than 9000 stores under banner
Unilever at a glance
• We sell our Home & Personal Care and Foods
brands in 150 countries
• Overall 1999 turnover of US$ 45,790 million
• 43rd by turnover in the Fortune 500 list of largest
companies (August 1999)
• Recent major acquisitions: Amora Maille (F),
Ben&Jerry’s (USA), Slim Fast (USA), and
Bestfoods (USA)
Carrefour objective
The excellence of the supply chain:
• No out of stocks on the shelf
• Lowest total inventories
• Faster cycle times
• Automation of all information flows
• Lowest total delivered cost (supplier to
shelf)
Carrefour supply chain vision
The target organization:
Supplier
Daily sales
& inventory data
per store
Cross-docking
platform
Daily sales &
inventory data
Store
Continuous replenishment (A to B delivery)
No
inventory
No
Backroo
m
inventory
One of Carrefour’s Key
Strategies
Collaborative approach with our suppliers
• More sharing of information
• Greater supplier involvement in the replenishment
process
• Greater accountability:
– Shared objectives
• Inventory levels
• Cycle times
• Service rates, etc, …
– Performance indicators and score cards
Carrefour and Unilever
scope of operations
• Commercial relationship in all Carrefour Countries
• Involvement of 57Unilever Companies
• Across all Unilever categories
• Mutually important business partners
• With a shared ambition for growth and operational
global excellence
Carrefour & Unilever - A mature
Supply Chain in Europe
•
•
•
•
EDI rolled out at 100% in all major countries
CMI with common tools and processes
Building experience with ABC costing
… and Product Availability & Traceability
Results
• Improvements in Service levels
• Significant costs reduction
• Robustness of operations
• Better integration of work flows
Definition of a Global Common
Supply Chain Strategy
• Corporate commitment to promote process
improvements globally
• Use a standard scorecard to monitor current situation
• Implement Best Practices
– EDI
– Co managed inventory
• Global roll out plan for overseas regions (Latin
America and Asia)
• Close cooperation on plan management
Implementation of the strategy
in Asia and Taiwan in particular
• Asia is the fastest growing Carrefour region
• Capabilities and openness on new technologies
• Three priority countries:
– Taiwan
– Korea
– Thailand
• Taiwan the biggest Asian country for Carrefour
»
• An adapted infrastructure for a facilitated roll
out
Scorecard
Supplier ECR Score Card
Carrefour - Unilever
Row Fill
Nb
in
Indicators
Indicator
unit
1 - Logistic volumes
11
S
Turnover
12
S
Number of parcels
13
S
Number of orders
14
S
Number of parcels per order
M LC(*)
x1000 parcels
parcels
2 - Sales competitiveness
21
C
Purchase price indicator
3 - Administrative performance
31
S
Billing accuracy
32
S
Number of operationnal EDI messages
%
4 - Logistic performance
4.1 Supplier
411
C
Product availability
%
412
S
Delivery lead time
Nb of days
413
C
On time deliveries
%
414
C
Proposal orders modified (CMI)
%
4.2 - Carrefour warehouse
421
C
Product availability
422
C
A to B store deliveries
%
%
423
C
Inventory level in days
Nb of days
424
C
Inventory level in value
K LC(*)
425
C
Inventory level in pallets
Nb of pallets
431
C
Out of stock on the shelf
432
C
Inventory level in days
Nb of days
433
C
Inventory level in value
K LC(*)
4.3 - Carrefour store
5 - Logistic benefits
C 5.1 - Real operational savings
C 5.2 - Estimated operational saving
* LC : local currency
%
N-1
Target
N
To date
result
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
Scorecard
Supplier ECR Score Card
Carrefour - Unilever
Row Fill
Nb
in
1 - Logistic volumes
S
Turnover
12
S
Number of parcels
13
S
Number of orders
14
S
Number of parcels per order
2 - Sales competitiveness
C
Target
N
To date
result
Indicators
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Indicator
unit
parcels
1 - Logistic volumes
Purchase price indicator
3 - Administrative performance
11
S
Turnover
12
S
Number
of parcels
%
13
S
Number of orders
14
S
Number of parcels per order
31
S
Billing accuracy
32
S
Number of operationnal EDI messages
4 - Logistic performance
4.1 Supplier
411
N-1
Row Fill M LC(*)
Nb in x1000 parcels
11
21
Indicator
unit
Indicators
C
Product availability
%
412
S
Delivery lead time
Nb of days
413
C
On time deliveries
%
414
C
Proposal orders modified (CMI)
%
4.2 - Carrefour warehouse
421
C
Product availability
422
C
A to B store deliveries
%
%
423
C
Inventory level in days
Nb of days
424
C
Inventory level in value
K LC(*)
425
C
Inventory level in pallets
Nb of pallets
431
C
Out of stock on the shelf
432
C
Inventory level in days
Nb of days
433
C
Inventory level in value
K LC(*)
4.3 - Carrefour store
5 - Logistic benefits
C 5.1 - Real operational savings
C 5.2 - Estimated operational saving
* LC : local currency
%
M LC(*)
x1000 parcels
parcels
Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
Scorecard
Supplier ECR Score Card
Carrefour - Unilever
Row Fill
Nb
in
Indicators
Indicator
unit
N-1
Target
N
To date
result
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Aug.
1 - Logistic volumes
11
S
Turnover
12
S
Number of parcels
13
S
Number of orders
14
S
Number of parcels per order
M LC(*)
x1000 parcels
parcels
2 - Sales competitiveness
21
C
Purchase price indicator
3 - Administrative performance
31
S
Billing accuracy
32
S
Number of operationnal EDI messages
4 - Logistic performance
4.1 Supplier
411
C
Product availability
412
S
Delivery lead time
413
C
On time deliveries
414
C
Proposal orders modified (CMI)
4.2 - Carrefour warehouse
Row
Fill
%
Nb in
Indicator
unit
3 -%Administrative performance
Nb of days
31
%
S
Billing accuracy
%
32
S
Number of operationnal EDI messages
421
C
Product availability
422
C
A to B store deliveries
%
423
C
Inventory level in days
Nb of days
424
C
Inventory level in value
K LC(*)
425
C
Inventory level in pallets
Nb of pallets
431
C
%
Out of stock on the shelf
432
C
Inventory level in days
Nb of days
433
C
Inventory level in value
K LC(*)
4.3 - Carrefour store
5 - Logistic benefits
C 5.1 - Real operational savings
C 5.2 - Estimated operational saving
* LC : local currency
Indicators
%
%
Sept.
Oct.
Nov.
Dec.
Scorecard
Supplier ECR Score Card
Carrefour - Unilever
Row Fill
Nb
in
Indicators
Indicator
unit
N-1
Target
N
To date
result
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Aug.
1 - Logistic volumes
11
S
Turnover
12
S
Number of parcels
13
S
Number of orders
14
S
Number of parcels per order
M LC(*)
x1000 parcels
parcels
2 - Sales competitiveness
21
C
Purchase price indicator
3 - Administrative performance
31
S
Billing accuracy
32
S
Number of operationnal EDI messages
4 - Logistic performance
4.1 Supplier
411
%
Row Fill
%
in
NbNb
of days
C
Product availability
412
S
Delivery lead time
413
C
On time deliveries
414
C
Proposal orders modified (CMI)
421
C
Product availability
422
C
A to B store deliveries
423
C
Inventory level in days
Nb of days
424
C
Inventory level in value
K LC(*)
425
C
4.2 - Carrefour warehouse
Inventory level in pallets
4.3 - Carrefour store
431
C
Out of stock on the shelf
432
C
Inventory level in days
433
C
Inventory level in value
5 - Logistic benefits
C 5.1 - Real operational savings
C 5.2 - Estimated operational saving
* LC : local currency
Indicators
Indicator
unit
%
4 -%Logistic performance
%
4.1 Supplier
%
411
C
Product availability
%
Nb of pallets
412
S
Delivery lead time
Nb of days
413
%
C
On time deliveries
%
Nb of days
C
Proposal orders modified (CMI)
%
414
K LC(*)
Sept.
Oct.
Nov.
Dec.
Scorecard
Supplier ECR Score Card
Carrefour - Unilever
Row Fill
Nb
in
Indicators
Indicator
unit
N-1
Target
N
To date
result
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Aug.
Sept.
1 - Logistic volumes
11
S
Turnover
12
S
Number of parcels
13
S
Number of orders
14
S
Number of parcels per order
M LC(*)
x1000 parcels
parcels
2 - Sales competitiveness
21
C
Purchase price indicator
3 - Administrative performance
31
S
Billing accuracy
32
S
Number of operationnal EDI messages
%
4 - Logistic performance
4.1 Supplier
411
C
Product availability
%
412
S
Delivery lead time
Nb of days
413
C
On time deliveries
%
414
C
Proposal orders modified (CMI)
%
4.2 - Carrefour warehouse
421
C
Product availability
422
C
A to B store deliveries
423
C
Inventory level in days
424
C
Inventory level in value
425
C
Inventory level in pallets
4.3 - Carrefour store
%
Indicators
Indicator
unit
%
4 - Logistic performance
Nb of pallets
4.2 - Carrefour warehouse
Nb of days
K LC(*)
431
C
Out of stock on the shelf
432
C
Inventory level in days
Nb of days
433
C
Inventory level in value
K LC(*)
5 - Logistic benefits
C 5.1 - Real operational savings
C 5.2 - Estimated operational saving
* LC : local currency
Row Fill
Nb in
%
421
C
Product availability
%
422
C
A to B store deliveries
%
423
C
Inventory level in days
Nb of days
424
C
Inventory level in value
K LC(*)
425
C
Inventory level in pallets
Nb of pallets
Oct.
Nov.
Dec.
Scorecard
Supplier ECR Score Card
Carrefour - Unilever
Row Fill
Nb
in
Indicators
Indicator
unit
N-1
Target
N
To date
result
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
1 - Logistic volumes
11
S
Turnover
12
S
Number of parcels
13
S
Number of orders
14
S
Number of parcels per order
M LC(*)
x1000 parcels
parcels
2 - Sales competitiveness
21
C
Purchase price indicator
3 - Administrative performance
31
S
Billing accuracy
32
S
Number of operationnal EDI messages
%
4 - Logistic performance
4.1 Supplier
411
C
Product availability
%
412
S
Delivery lead time
Nb of days
413
C
On time deliveries
%
414
C
Proposal orders modified (CMI)
%
4.2 - Carrefour warehouse
421
C
Product availability
422
C
A to B store deliveries
%
423
C
Inventory level in days
Nb of days
424
C
Inventory level in value
425
C
Inventory level in pallets
4.3 - Carrefour store
431
C
Out of stock on the shelf
432
C
Inventory level in days
433
C
Inventory level in value
5 - Logistic benefits
C 5.1 - Real operational savings
C 5.2 - Estimated operational saving
* LC : local currency
%
K LC(*)
Nb of pallets
Row
Fill
Nb % in
Indicators
Indicator
unit
Nb of days
K LC(*)
4 - Logistic performance
4.3 - Carrefour store
431
C
Out of stock on the shelf
%
432
C
Inventory level in days
Nb of days
433
C
Inventory level in value
K LC(*)
Aug.
Sept.
Oct.
Nov.
Dec.
Co-Managed Inventory (CMI)
PHYSICAL STOCKS
MOVEMENTS
FORECASTS+

ORDER
PROPOSAL

STOCKS & WHAREHOUSE
MOVEMENTS
CLIENT
DELIVERY
ORDER

ORDER
CONFIRMATION
LEVER STOCK
E.D.I.
Physical flow of products
CARREFOUR STOCK
CL
IE
N
T
ORDERS
Supply Chain optimization in Taiwan
very promising results
• Improved service from Unilever to Carrefour’s
warehouse
– on time deliveries = +7%
– product availability = +20%
• Increased service from Carrefour ’s warehouse to
stores
– product availability = +11%
While
•Reducing stocks by 40%
•Reducing delivery lead times by one day
What is:
?
• A stand-alone profit-oriented business :
– with its own management team
– focused on delivering efficiency to :
• the retail community,
• its suppliers
– through the use of internet based transaction and
collaboration tools.
• A business whose services are available to all
retailers, regardless of equity participation.
• It is not a «central buying office ».
The
equity members
Pinault Printemps
Redoute
• A global purchase turnover > to US$ 200 billion
• A member’s commitment to bring 70% of this
purchase amount on GNX
The
valuable services
Additional Value
Added Services
Applications
Sourcing Suppliers
and Products
Applications
Workflow
Catalogues
Web-Enabled,
Dynamic Trading
Communication Tools
Collaborative
Planning,
Forecasting and
Replenishment
(CPFR)
Collaborative
Product
Development
Unilever: one of the chosen
partners involved in GNX design
and implementation
• Prove transaction capabilities on the Net
• Set up a migration plan from existing EDI to GNX
• Develop a standardized approach for the product
catalog with the other GNX partners
• Build supply chain optimization capabilities (CPFR)
Taiwan a GNX pilot country
• Two pilot countries: France and Taiwan
• Pilot objective: move EDI communication to
internet enabled transaction on GNX
• Steps:
– Prove end to end communication based on new internet
protocol
– Migrate current EDI messages on GNX
– Parallel run to test robustness
– Go live
A view to the future of EDI
communication
Supplier
Browser
access
GNX
Potentially:
- All
countries
- All suppliers
Web
Web
EDI
EDI
B2B Hub
Carrefour
gateway
Carrefour
private network
Internet
Supplier
EDI
platform
Classic
Classic
EDI
EDI
Unilever
gateway
Unilever
private network
Expected benefits from GNX
• Unify all current processes and tools
• Reduce communication costs ( Internet Vs VAN’s)
• Handle existing EDI flows
• Promote the use of common worldwide standards
• Use in the future an easily and universally
understandable language (XML)
• Enable access to other GNX functionality
GNX pilot next steps
• Roll out of Unilever Carrefour learnings to all
Carrefour countries
• Pursue pilot developments
– Product catalogue
– CPFR
• Carrefour to extend process roll out to all
suppliers
GNX a new tool for our Global
Supply Chain Strategy
• Global transactional capabilities
• Definition and use of a global communication
standard
• Global data alignment and synchronization
• Ability to deploy standard processes globally
• Automation of all information flows with suppliers
(including smaller ones) –Web EDI
• Advanced Supply Chain collaboration
Conclusion
• A successful and promising collaboration:
– A common and consistent strategy
– A global roll out
– Key learning for further implementation (new partners,
new countries)
• GNX, a tool to accelerate such initiatives
– Most advanced technology
– Wild range of functionality enabling implementation of
global best practices
Thank you for your attention