1、 Wal-Mart and Carrefour Supply Chain ComparisonPKSupply Chain StrategyInventory ManagementLogistics and DistributionProcurement&supplier ManagementWhy this Strategy?TechnologyWalmart rated as No.4 in the recent Supply Chain Top 25 by GartnerCarrefour has no such recognition yet2,100,000 EmployeesFle
2、et of 3500 owned Trucks80 Distribution CentersMost Technologically advanced SCMProfit of$14 BillionSales of$405 Billion(More than GDP of 160 countries)8500 Stores worldwide in 14 nations495,000 EmployeesProfit of 3 Billion EuroSales of 85 Billion Euro12000 Stores worldwide in 34 nationsFounded in 19
3、57 in France3PL LogisticsCPFR provides templates for supply chain partner collaboration.The process model at below is segmented into three stages.The planning stage establishes and updates the relationship;the sales forecasting and order replenishment stages occur more frequently.An important premis
4、e of this model is that accuracies in the forecast can be improved by having the customer and supplier participate in the forecast.Started in 2019-98 with pilot project with Sara Lee increasing sales by 32%Massive improvement(from 89%to 97%)of in-stock itemsLead times reduced from 21 days to 11 days
5、 Implementation was costly and required huge analyticsCan be implemented with Large SuppliersCRP-Continuous replenishment programDRP-Distribution Requirements PlanningWere all working together;thats the secret Sam WaltonConsumption/RequirementsMRP,work out requirements to supplier(PO)Production,deli
6、verySupplierCarrefourEDIDeliveryERPPKVMI implementation decision by top mgmt.Employees convinced of the benefits of VMIEDI Standards were setPOS data sent to manufacturersManufacturer decides inventory replenishmentGoods are shipped to Distribution centerWalmart/Carrefour sends acknowledgementManufa
7、cturer gets creditedLogistics and DistributionComparison:Wal-MartDistributionSystemUpdateYearSupply ManagementOrder Management and Performance1969Computer Tracking Inventory1980BarcodeTrack order flow1985Apply EDI in area distribution center19861988Fully apply EDI.1st using of satellite system,scann
8、er198972 hours delivery 1990IT vendor has access to website for sales info.199224 hours deliverReal time information for better communication2019Reduce staffQuicker response in supply chain2019Real Time Sales and Inventory Data2019Auto supply chain for small/local vendor2019Effective customer feedba
9、ck systemAvailability for customer shopping information to sales managers with vedio2000Increase 570%for website inquirydaily sales to$1100M on Thanksgiving Day2019Run updated websitecustomers can get commodity very easy from 500K skus.2019No1 of Top 500 in Fortune.Daily sales to$1430M on Thanksgivi
10、ng Day2019Promote EDIINT AS2 to set up industry standardLogistics and DistributionWal-Mart and Carrefour ComparisonFast and responsive systemCompany owned transport fleet of 3500 trucksReplenish store shelves twice a week compared to industry average of every 2 weeksWal-MartUses 3PL when venturing i
11、nto countries outside Europe like Brazil and China.Move to“River and Rail”transport to reduce truck mileage and safeguard the environment.Average inventory is 37 days of COGSMinimizing Pallet size for effective inventory managementCarrefourLogistics and DistributionWal-Mart and Carrefour ComparisonW
12、al-MartCarrefourVendor1Vendor2Vendor3VendorDistributionCenterStore 1Store 2Store 3StoreVendor1Vendor2Vendor3VendorStore 1Store 2Store 3StoreLogistics and DistributionWal-Mart and Carrefour ComparisonHigher pressure to distribution center:watch out the climate,stock and vendor delivery very closely t
13、o make sure high stock-in in stores.Better lead time to vendors for better forecast and order volume.Hard to forecast the demand precisely for different stores.Wal-MartShorter lead time to vendors.Vendors need deal with so many different stores.The stores compete with each other for same resources.C
14、arrefourLogistics and DistributionWal-Mart and Carrefour ComparisonInspect factory with same standard very strictly to insure higher quality which is the key for success in long term.Purchasing center to source all goods to insure the efficiency and cost controlBetter negotiable power for bigger qua
15、ntityLower price to customersOutsource purchasing to Li&Feng for cost reductionWal-MartBuying agent independently to purchase for individual store.Saving cost based on target priceLocal resource.Less differentiation in products.Return goods very convenient for direct contact with vendor,less oversto
16、ck or stock out.CarrefourProcurement and Vendor ManagementWal-mart:7.9 Carrefour 10.4 Industry:7.51To achieve the target that lowest total supply chain cost in the industry.23U.S market needs are huge and almost identity.3U.S enterprise pursue new technology and willing to take risk.Focus much on U.
17、S market as it account for 70%of the total sales turnover.1To build flexible and customer focused supply chain to compete in the global market.2Carrefour operates in three major markets:Europe,Latin America and Asia.With a presence in 34 countries,over 57%of group turnover derives from outside France.3Carrefours main market varies a lot as it comes from different country,culture,and purchasing power.3Europe enterprise are usually conservative and respect tradition.