Carrefour: Managing the Global Supply Chain

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Case Details:

Case Code : OPER033
Case Length : 12 Pages
Period : 1990 - 2003
Organization : Carrefour
Pub Date : 2004
Teaching Note :Not Available
Countries : France
Retail ing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Managing the Supply Chain


Carrefour usually followed a 'direct procurement strategy' acquiring food products and other goods directly from the manufacturers. The company purchased goods from local manufacturers in all the global markets in which it operated. Approximately 90% of the goods at Carrefour stores in developing markets were procured locally. Explaining the rationale, Daniel Bernard (Bernard), Chairman and CEO of Carrefour said, "Retail is the image of the country in which it lives. You have to adapt your food and other products to the local culture." Local purchases enabled the company to keep its costs low as well as shorten its supply chain. However, in a few countries, for instance, in Japan, Carrefour depended on wholesalers for almost 40% of the items supplied to it.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Carrefour used the Electronic Data Interchange (EDI) for procurement, which required electronic linking of stores, warehouses and suppliers through computer networks. The company initially used EDI to receive orders from the stores and receive dispatch notices...

The New Initiative

Through the application of modern technologies, Carrefour was able to significantly improve its supply chain operations over the years. In late 2003, in its efforts to integrate its global supply chain operations, Carrefour tied up with See Beyond to install Integrated Composite Application Network (ICAN) software. This was a part of Carrefour's strategy to adapt itself to the local conditions by customizing its operations, the merchandize mix and even store formats. By implementing ICAN, Carrefour aimed at integrating its stores, distribution centers and supply chain partners in various countries...


Exhibit I: Carrefour's Financial Performance (2000-02)
Exhibit II: Carrefour's Sales by Format & Region (2001)
Exhibit III: Carrefour's Operations & Brand Names
Exhibit IV: Types of Cross Docking
Exhibit V: Performance Indicators for Evaluation of Suppliers

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