In the general framework of an all-out redefinition of organizational processes (accounting, orders, merchandise acquisition, follow-up on purchases and sales, billing, supplier negotiations, unification and standardization of information systems), Carrefour MAF was looking for modular and open-ended solutions, which could take up a key role in the restructuring task.
“INCREASING PROFITABILITY THROUGH REORGANIZATION,
COHERENCE AND PERFORMANCE ENHANCEMENT.”
- Set up a group referential; in fact until then:
- Each country had its own referential.
- Listed data lacked uniformity.
- Consolidations at various structure levels were laborious if at all possible.
- Redefine a purchase monitoring process based on "mixed" organization:
- Purchases management is decentralized; each country or even each store manages its own negotiation. It is not possible for the group to exercise any influence in international negotiations.
- The group has no visibility on store actions:
- It is not possible to follow on negotiations based on store's real turn over.
- No margin or purchase turnover analyses are available.
- Information exchanges among the various organizational levels are not fully reliable.
- Manual invoicing.
This result in three major issues:
- Lower profitability as money is left on the table.
- Lower profitability as different business units fail to obtain best terms.
- Regulatory non-compliance due to an inability to identify the true position with suppliers.
- Implement an automatic invoicing
process through an interface to the accounting system:
- Define complete visibility and transparency of the negotiation and invoicing process.
- Optimize the vendor negotiation conditions to increase the gain and profit.
- Multiple levels of negotiation:
- Build a multiple-country organizational structure.
- Setting a budget:
- Having a strategic view on the projection during the year.
- Having a strategic view on the real negotiations made and the budget.
- Comparison during the whole year for the negotiation results with the budget to reach all levels.
- Set Objectives from a global perspective down to micro level.
- Upstream and downstream analysis:
- Build a series of detailed reports analyzing deviations from objectives, supplier group agreements and performance indicator.
- Allows analysis on regular basis and anticipate future negotiations.
Benefits achieved through core process improvement: