"carrefour and unilever deployment of a global supply chain strategy"
TRANSCRIPT
"Carrefour and Unilever "Carrefour and Unilever deployment of a Global Supply deployment of a Global Supply
Chain Strategy"Chain Strategy"
Carrefour, a global presence in 26 Carrefour, a global presence in 26 countriescountries
n°1 France
n°1 Spain
n°1 Belgium
n°2 Italy
n°1 Greece
n°1 Brazil
n°1 Argentina
n°1 Taiwan
n°1 Indonesia
• 561 hypermarkets• 1324 supermarkets• 2611 deep discounts stores• 788 other store formats
More than 9000 stores under banner
Unilever at a glanceUnilever at a glance
• We sell our Home & Personal Care and Foods We sell our Home & Personal Care and Foods brands in 150 countriesbrands in 150 countries
• Overall 1999 turnover of US$ 45,790 millionOverall 1999 turnover of US$ 45,790 million
• 43rd by turnover in the Fortune 500 list of largest 43rd by turnover in the Fortune 500 list of largest companies (August 1999)companies (August 1999)
• Recent major acquisitions: Amora Maille (F), Recent major acquisitions: Amora Maille (F), Ben&Jerry’s (USA), Slim Fast (USA), and Ben&Jerry’s (USA), Slim Fast (USA), and Bestfoods (USA) Bestfoods (USA)
Carrefour objectiveCarrefour objective
• No out of stocks on the shelfNo out of stocks on the shelf
• Lowest total inventoriesLowest total inventories
• Faster cycle timesFaster cycle times
• Automation of all information flowsAutomation of all information flows
• Lowest total delivered cost (supplier to shelf)Lowest total delivered cost (supplier to shelf)
The excellence of the supply The excellence of the supply chain:chain:
Carrefour supply chain visionCarrefour supply chain vision
Cross-Cross-dockingdockingplatformplatform
SupplierSupplier StoreStore
NoNoBackrooBackroo
mminventorinventor
yy
NoNoinventorinventor
yy
Daily sales &Daily sales &inventory datainventory data
Daily salesDaily sales& inventory data& inventory data
per storeper store
Integrated information
systemEDI
Continuous replenishment (A to B delivery)
The target organization:The target organization:
One of Carrefour’s Key One of Carrefour’s Key StrategiesStrategies
• More sharing of informationMore sharing of information
• Greater supplier involvement in the replenishment Greater supplier involvement in the replenishment processprocess
• Greater accountability:Greater accountability:– Shared objectivesShared objectives
• Inventory levelsInventory levels
• Cycle timesCycle times
• Service rates, etc, …Service rates, etc, …
– Performance indicators and score cardsPerformance indicators and score cards
Collaborative approach with our suppliersCollaborative approach with our suppliers
Carrefour and UnileverCarrefour and Unilever scope of operations scope of operations
• Commercial relationship in all Carrefour CountriesCommercial relationship in all Carrefour Countries
• Involvement of 57Unilever CompaniesInvolvement of 57Unilever Companies
• Across all Unilever categoriesAcross all Unilever categories
• Mutually important business partnersMutually important business partners
• With a shared ambition for growth and operational With a shared ambition for growth and operational global excellenceglobal excellence
Carrefour & Unilever - A mature Carrefour & Unilever - A mature Supply Chain in EuropeSupply Chain in Europe
• EDI rolled out at 100% in all major countriesEDI rolled out at 100% in all major countries• CMI with common tools and processesCMI with common tools and processes• Building experience with ABC costingBuilding experience with ABC costing• … … and Product Availability & Traceabilityand Product Availability & Traceability
ResultsResults• Improvements in Service levelsImprovements in Service levels• Significant costs reductionSignificant costs reduction• Robustness of operationsRobustness of operations• Better integration of work flowsBetter integration of work flows
Definition of a Global Common Definition of a Global Common Supply Chain StrategySupply 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 Implementation of the strategy in Asia and Taiwan in particularin Asia and Taiwan in particular
• Asia is the fastest growing Carrefour regionAsia is the fastest growing Carrefour region
• Capabilities and openness on new technologiesCapabilities and openness on new technologies
• Three priority countries:Three priority countries:– TaiwanTaiwan– KoreaKorea– ThailandThailand
• Taiwan the biggest Asian country for CarrefourTaiwan the biggest Asian country for Carrefour»
• An adapted infrastructure for a facilitated roll outAn adapted infrastructure for a facilitated roll out
Row Nb
Fill in
IndicatorsIndicator
unitN-1
Target N
To date result
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
2 - Sales competitiveness21 C Purchase price indicator
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
4 - Logistic performance4.1 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 warehouse421 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
4.3 - Carrefour store431 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 benefitsC 5.1 - Real operational savingsC 5.2 - Estimated operational saving
* LC : local currency
Supplier ECR Score CardCarrefour - Unilever
ScorecardScorecard
SPECIMEN
Row Nb
Fill in
IndicatorsIndicator
unitN-1
Target N
To date result
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
2 - Sales competitiveness21 C Purchase price indicator
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
4 - Logistic performance4.1 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 warehouse421 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
4.3 - Carrefour store431 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 benefitsC 5.1 - Real operational savingsC 5.2 - Estimated operational saving
* LC : local currency
Supplier ECR Score CardCarrefour - Unilever
ScorecardScorecard
SPECIMEN
Row Nb
Fill in
IndicatorsIndicator
unit
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
Row Nb
Fill in
IndicatorsIndicator
unitN-1
Target N
To date result
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
2 - Sales competitiveness21 C Purchase price indicator
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
4 - Logistic performance4.1 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 warehouse421 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
4.3 - Carrefour store431 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 benefitsC 5.1 - Real operational savingsC 5.2 - Estimated operational saving
* LC : local currency
Supplier ECR Score CardCarrefour - Unilever
ScorecardScorecard
SPECIMEN
Row Nb
Fill in
IndicatorsIndicator
unit
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
Row Nb
Fill in
IndicatorsIndicator
unitN-1
Target N
To date result
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
2 - Sales competitiveness21 C Purchase price indicator
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
4 - Logistic performance4.1 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 warehouse421 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
4.3 - Carrefour store431 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 benefitsC 5.1 - Real operational savingsC 5.2 - Estimated operational saving
* LC : local currency
Supplier ECR Score CardCarrefour - Unilever
ScorecardScorecard
SPECIMENRow Nb
Fill in
IndicatorsIndicator
unit
4 - Logistic performance4.1 Supplier
411 C Product availability %
412 S Delivery lead time Nb of days
413 C On time deliveries %
414 C Proposal orders modif ied (CMI) %
Row Nb
Fill in
IndicatorsIndicator
unitN-1
Target N
To date result
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
2 - Sales competitiveness21 C Purchase price indicator
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
4 - Logistic performance4.1 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 warehouse421 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
4.3 - Carrefour store431 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 benefitsC 5.1 - Real operational savingsC 5.2 - Estimated operational saving
* LC : local currency
Supplier ECR Score CardCarrefour - Unilever
ScorecardScorecard
SPECIMENRow Nb
Fill in
IndicatorsIndicator
unit
4 - Logistic performance4.2 - 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
Row Nb
Fill in
IndicatorsIndicator
unitN-1
Target N
To date result
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
1 - Logistic volumes11 S Turnover M LC(*)
12 S Number of parcels x1000 parcels
13 S Number of orders
14 S Number of parcels per order parcels
2 - Sales competitiveness21 C Purchase price indicator
3 - Administrative performance31 S Billing accuracy %
32 S Number of operationnal EDI messages
4 - Logistic performance4.1 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 warehouse421 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
4.3 - Carrefour store431 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 benefitsC 5.1 - Real operational savingsC 5.2 - Estimated operational saving
* LC : local currency
Supplier ECR Score CardCarrefour - Unilever
ScorecardScorecard
SPECIMEN
Row Nb
Fill in
IndicatorsIndicator
unit
4 - Logistic performance4.3 - 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(*)
+
PHYSICAL STOCKS
MOVEMENTS
FORECASTS
CARREFOUR STOCK
CLIENT
CLIENT
E.D.I.
ORDERSLEVER STOCK
Physical flow of products
Co-Managed Inventory (CMI)Co-Managed Inventory (CMI)
STOCKS & WHAREHOUSE
MOVEMENTS
DELIVERY ORDER
ORDER
CONFIRMATION
ORDER
PROPOSAL
Supply Chain optimization in Taiwan Supply Chain optimization in Taiwan
very promising resultsvery promising results• Improved service from Unilever to Carrefour’s Improved service from Unilever to Carrefour’s warehousewarehouse– on time deliveries = +7%on time deliveries = +7%– product availability = +20% product availability = +20%
• Increased service from Carrefour ’s warehouse to Increased service from Carrefour ’s warehouse to storesstores– product availability = +11%product availability = +11%
WhileWhile•Reducing stocks by 40%Reducing stocks by 40%
•Reducing delivery lead times by one dayReducing delivery lead times by one day
What is: ?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 Pinault Printemps RedouteRedoute
• A global purchase turnover > to US$ 200 billionA global purchase turnover > to US$ 200 billion
• A member’s commitment to bring 70% of this A member’s commitment to bring 70% of this purchase amount on GNXpurchase amount on GNX
The valuable services
Sourcing Suppliers Sourcing Suppliers and Productsand Products
Collaborative Collaborative Product Product
DevelopmentDevelopment Web-Enabled,Web-Enabled,
Dynamic TradingDynamic Trading
Collaborative Collaborative Planning, Planning,
Forecasting and Forecasting and Replenishment Replenishment
(CPFR)(CPFR)
Additional Value Additional Value Added ServicesAdded Services
Communication Tools
CataloguesA
pplic
atio
ns
WorkflowApplications
Unilever: one of the chosen Unilever: one of the chosen partners involved in GNX design partners involved in GNX design
and implementationand implementation
• Prove transaction capabilities on the NetProve transaction capabilities on the Net
• Set up a migration plan from existing EDI to GNXSet up a migration plan from existing EDI to GNX
• Develop a standardized approach for the product Develop a standardized approach for the product catalog with the other GNX partnerscatalog with the other GNX partners
• Build supply chain optimization capabilities (CPFR)Build supply chain optimization capabilities (CPFR)
Taiwan a GNX pilot countryTaiwan a GNX pilot country
• Two pilot countries: France and TaiwanTwo pilot countries: France and Taiwan
• Pilot objective: move EDI communication to Pilot objective: move EDI communication to internet enabled transaction on GNXinternet enabled transaction on GNX
• Steps:Steps:– Prove end to end communication based on new internet Prove end to end communication based on new internet
protocolprotocol– Migrate current EDI messages on GNXMigrate current EDI messages on GNX– Parallel run to test robustnessParallel run to test robustness– Go liveGo live
Potentially:
- All countries
- All suppliers
A view to the future of EDI A view to the future of EDI communicationcommunication
Unileverprivate network
Unilevergateway
Internet
Carrefourprivate network
Carrefourgateway
GNX
SupplierEDI
platform
Supplier
Browser
access
WebEDI
WebEDI
ClassicEDI
ClassicEDI
B2B Hub
Expected benefits from GNXExpected benefits from GNX
• Unify all current processes and toolsUnify all current processes and tools
• Reduce communication costs ( Internet Vs VAN’s)Reduce communication costs ( Internet Vs VAN’s)
• Handle existing EDI flowsHandle existing EDI flows
• Promote the use of common worldwide standardsPromote the use of common worldwide standards
• Use in the future an easily and universally Use in the future an easily and universally understandable language (XML)understandable language (XML)
• Enable access to other GNX functionalityEnable access to other GNX functionality
GNX pilot next stepsGNX pilot next steps
• Roll out of Unilever Carrefour learnings to all Roll out of Unilever Carrefour learnings to all Carrefour countriesCarrefour countries
• Pursue pilot developmentsPursue pilot developments– Product catalogueProduct catalogue– CPFRCPFR
• Carrefour to extend process roll out to all Carrefour to extend process roll out to all supplierssuppliers
GNX a new tool for our Global GNX a new tool for our Global Supply Chain StrategySupply Chain Strategy
• Global transactional capabilitiesGlobal transactional capabilities
• Definition and use of a global communication Definition and use of a global communication standardstandard
• Global data alignment and synchronizationGlobal data alignment and synchronization
• Ability to deploy standard processes globallyAbility to deploy standard processes globally
• Automation of all information flows with suppliers Automation of all information flows with suppliers (including smaller ones) –Web EDI(including smaller ones) –Web EDI
• Advanced Supply Chain collaborationAdvanced Supply Chain collaboration
ConclusionConclusion
• A successful and promising collaboration:A successful and promising collaboration:– A common and consistent strategyA common and consistent strategy– A global roll outA global roll out– Key learning for further implementation (new partners, Key learning for further implementation (new partners,
new countries)new countries)
• GNX, a tool to accelerate such initiativesGNX, a tool to accelerate such initiatives– Most advanced technologyMost advanced technology– Wild range of functionality enabling implementation of Wild range of functionality enabling implementation of
global best practices global best practices
Thank you for your attentionThank you for your attention