CARREFOUR MAF

PROJECT details

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.”

BUSINESS NEEDS
  • 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.
DELIVERED SOLUTION
  • Implement a purchase-monitoring process based on a decentralized organization:
    • Centralized business management.
    • Centralized rebate and fee management.
  • Set-up a unique referential:
    • Unique version of truth.
    • Multiple countries and store format (hypermarket, supermarkets)
    • Manages information inputs such as purchases, sales, deals conditions.
  • 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.

Result => Increasing profitability through reorganization (centralized agreements and negotiations), coherence (one referential holding the unique version of the data) and performance enhancement (forecast management).

Benefits achieved through core process improvement:

  • Lower cost of goods.
  • Preserve a win-win relation with the supplier.
  • Improve assortment and supplier performance.
  • Reduce labor and operating costs.
  • Maintain highest standards of control and discipline.

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