Supply Chain Management of Carrefour Wholesale Cash and Carry


Amitava Manna


Executive Summary Cash and Carry business started in India in the year 1997 when the Government of India allowed 100% Foreign Direct Investment (FDI) in the Cash and Carry business. Carrefour has plans to expand aggressively and show their presence even in South India. The purpose of this paper is to discuss Carrefour in India. The significant foreign investment was noticed when Metro entered India in the year 2003. The company also delayed its retail plans to focus on launching cash and carry (wholesale) operations. Findings – Carrefour needs time to tie up with an Indian partner to start retail operations in India and how they are meeting the whole sale operations in India. By using resource-based theory. Carrefour had opened just two stores in India. retailers and mall owners. Another major entry in to this sector was done by Wal-Mart which entered India in the year 2009 in collaboration with Bharti. Over the last one and half years. But in the coming years. 2|Page . It was during late 2010 that Carrefour entered in to this segment. The world’s second biggest supermarket group by sales is negotiating with over six Indian companies including diversified business groups. one in Delhi and the very recent one in Jaipur. the company’s supply chain strategies are studied and analyzed.

...................................................................................................................................................Table of Contents Table of Contents...................................................8 Scope of the Study................................................................................................................................................................................................................................................................7 Objective of the Study........................16 3|Page ...............................................................................................................................................................................9 Existing System.........................................................................................................................................................................13 Proposed System.........................5 Cash and Carry Business Model..................................................................................10 Data Collection...............................................................................................................................................................................................................................................................................................15 Recommendations.........................................................................................................................11 Data Analysis.......................4 The rise of Cash and Carry Wholesaling in India..................................8 Methodology.................................3 Introduction/Background of the study...........................

(2) Carrefour India Master Franchise Co Pvt Ltd which will choose an Indian company as partner to be able to create franchised shops under the Carrefour brand. wholly-owned subsidiaries of Carrefour: (1) Carrefour Wholesale Cash and Carry India Pvt Ltd (Carrefour WC&C India Pvt Ltd). To better understand how the Group Carrefour functions. Carrefour opened up its second Wholesale Cash & Carry in Jaipur. mergers and acquisitions and govt. core competence. and created two companies. Carrefour Wholesale Cash & Carry in Seelampur. headquarters. the possible competitive analysis of customer base. near Seelampur Metro Station. Having studied the Indian market for many months. To prepare its implementation. Since the FDI policy in India does not allow foreign companies to open multi-brand retail stores in the country. especially in terms of interactions with suppliers. Since the late 1990s. the French company opened in 2007 an office in Gurgaon (in the national capital region of Delhi) with 50 people. The store in Jaipur is almost the same size as Delhi.000 selling points. infrastructure. which is dedicated to the wholesale trade. competition. Hindustan Unilever Ltd (HUL) to send some of its key executives to Carrefour S. the group asked India’s largest consumer products company. New Delhi is spread across 5. this paper aims to study “Supply Chain Management of Carrefour Wholesale Cash and Carry”. new opportunities. L’Oreal has sold its shampoos since 1996 in small flasks and in bags in 200. according to a senior HUL executive who did not want to be named. restaurants and local retailers. because he was not authorized to speak with the media (Malviya and Roy. customer needs. Carrefour is also planning an entry into Agra and Meerut. relevant effects of globalization. The manufacturers of consumer goods had not waited for the big representatives of modern retailing to become established in India.000 stock-keeping units to cater to professional businesses. HUL executives spent nine months at the Paris headquarters. technology. supply chain and distribution network. Therefore. 4|Page . mangoes and coconuts.Introduction/Background of the study The new store. global retailers have opted for the cash-and-carry route to establish their presence here. We summarize a conceptual framework that identifies the specific marketing research data requirements pertaining to the continuity and change forces.A. institutions. This branch realizes a turnover of US$450 million and has a growth rate of 15 per cent per year. policy and legislations We also show how this information can be utilized to improve various tactical and strategic decisions that can be made based on this knowledge.2008). culture and performance.200 square meter and will house over 10. the French group has been present in India with an office that buys clothes. In this paper we outlined an approach that can determine how external factors might affect the development of Carrefour operations in Indian market.

This presents a win-win scenario for the economy. These new Cash and Carry operations stimulate the Indian economy. the many stages of the supply chain also cause a hike in prices. Moreover. 5|Page . The Cash and Carry wholesale business model is becoming an unconventional means of entering this emerging market. mostly due to the many levels of commission at each chain link. offices and institutions”. caterers.The rise of Cash and Carry Wholesaling in India Retail giants from the west are keen on entering the Indian market. while still paying competitive wholesale prices. With the Indian government imposing a FDI cap of 51% in single brand retail. Carrefour entered and they now operate two cash and carry stores. hoteliers.155. The presence of Cash and Carry operations in India is currently minimal. with a population of approximately 1. This is hardly surprising. Wal-Mart entered the market in 2007 by forming a joint venture with Bharti Enterprises to create “Best Price Modern Wholesale”. but it is rapidly growing. Carrefour and other retailers are unable to conventionally enter this market. This situation has forced global companies such as Metro. India offers lucrative opportunities to these global retailers. as well as larger businesses. Cash and Carry wholesalers not only create higher margins for the kirana shopkeepers. Roughly 70% of Carrefour’s sales go directly to small traders. entering this lucrative market has proven to be an extremely challenging endeavor for foreign retailers. The Cash and Carry model is different from traditional wholesaling in that it involves paying at the time of the transaction. The current retail market in India is mainly composed of kirana “mom and pop” type stores. small local shops. and have a limited selection of products. and make the supply chain more efficient.678 and an ever-rising GDP. Carrefour Wholesale has adapted their merchandise to meet the “day-to-day needs of restaurant owners. given that India accounts for over a sixth of the world’s population accompanied by increasing levels of economic development. The local kirana owners do not benefit from economies of scale. These crippling restrictions do not apply to wholesalers. and therefore global retailers are using “Cash and Carry” wholesaling as an indirect way to enter India’s high-growth market. hotels. other retail store owners. With India supporting such a huge portion of the global population. given the Indian government’s extensive regulations limiting Foreign Direct Investments (FDI). a wholesaler can help get rid of these high distribution inefficiencies. Yet. The 2006 Global Retail Development Index even named India as the most appealing country worldwide to enter the trade and retail market. It allows them to shop for a great variety of commodities and intermediate goods. Metro was first to enter the Indian market in 2003. fruit and vegetable resellers. It caters to traders. but also indirectly lead to lower prices for the end consumers. kiranas. Wal-Mart and Carrefour to get creative. and they now operate six cash and carry stores. reduce waste. with the remaining going to other Indian businesses such as restaurants. and now has five units in operation. which occupy close to 98% of the industry.347. and offices. Lastly. and does not include any delivery services. They even make a point to source approximately 90% of its merchandise locally.

In summary. the influx of Cash and Carry operations has minimized the middlemen in the supply chain. With forecasters predicting that India has the potential to be forty times larger by 2050. there is abundant scope for continued expansion and development. 6|Page . allowing cheaper goods for wholesalers and retailers.

medium and large-sized producers. Why companies showing their interest in this segment It is the only retail format where 100% FDI is allowed and Indian Government also recognized the benefits it brings to economies and for various player. On top of that. small restaurants & canteens. farmers. By creating demand through high margin among small and medium business. a South Africa based retail major. with the dispersed community of hotels. Though Indian retailers like Future Group and Reliance Retail have evinced interest in this business. and a large number of farmers and small and medium business as suppliers to the industry. traders. one of the earlier movers in the country ran out of steam in late 2000. cash and carry operates able to buy in bulk quantities which give advantages to its customers. 7|Page . caterers. currently has four stores and is opening a fifth one in Kolkata soon. The cash & carry segment in India is a relatively in small fraction of modern trade. UK retailer Tesco is the latest player to enter the business. the retail landscape is littered with carcasses of C&C players who lost the race. under one roof. but on-ground they don’t have much to show. even before it started for some. agricultural cooperatives and manufacturers. cash & carry operators able to make shorten supply chain (decrease the number of channel member) and reduce the high costs associated with a fragmented supply chain (estimated as high as 25% in India). Even international players like Carrefour and Tesco and Wal-Mart had also tested the soil of Indian retail market Metro Cash and Carry India. The Tata group’s Trent. But somebody say that cash & carry retailer directly buys product from producer and manufacturer and then sell to ultimate consumers. Retailer will also be benefited from it. a 100 per cent subsidiary of Metro Cash and Carry International GmbH. retailers and small to medium business enterprises. after Wal-Mart declared an exclusive tie-up with Bharti Retail last year. Although wholesalers buy primarily from manufactures and sell mostly to retailer. Modern trade in India makes up just about 10%-12 % of the $ 350 billion retail trade in India and there are no benchmark estimates on the potential of cash & carry formats in India. In this way. As they directly buy from producer which leads to high margin and high profits. “The potential of the business is huge given the fact that the country has a very large number of kiranas. Germany. restaurants. the first to foray into the country more than five years ago with a store in Bangalore. Cash & Carry is a wholesale model. Because this business model brings together small.Cash and Carry Business Model Cash and Carry model was developed by Lawrence Bately (he was entrepreneur and philanthropist) from Huddersfield. Shoprite.

Objective of the Study Carrefour in India deals with four different store formats: Hypermarts. furniture and appliances. In India wholesale cash and carry format has been implemented as of now. points out Mr Vedamani. apparels. entrepreneurs and retailers in Tier-II and Tier-III cities would have access to the entire range of products available in the market. Retailers' Association of India. as big as the retail sector in addition to the demand from hospitality players. in fact. Cash and Carry. small restaurants & canteens. traders and farmers. “The potential of the business is huge given the fact that the country has a very large number of kiranas. Supermarts. customer retention rate and current market share Infrastructural requirements: the facilities and stores Technology implemented to efficiently manage the supply chain The core competence of Carrefour in the Indian market. In addition to this. 2010. The cash and carry model brings the small retailer into the organized channel by helping them buy in an organized manner. and a large number of farmers and small and medium business as suppliers to the industry. the structure and the core values To analyze the performance in terms of customer satisfaction. The cash and carry business intends to reduce several layers in the wholesale business. The product categories include FMCG.“The market potential for the cash and carry business is huge. Retail giant Carrefour announced its entry into the Indian market by opening its first cash and carry store for wholesale distribution in Dec. The objective of the study is to  Study the FMCG supply chain of Carrefour India. he says. to understand the differentiating factors The distribution system adopted The organizational culture.” said Mr Gibson Vedamani.” a Metro spokesman said. quality and the profitability Competitive landscape for Carrefour in Indian market The government policies and legislation in terms of the FDI in the Indian retail industry The target segments and the adopted strategies Inventory management practices Customer retention policies and the type of the supply chain implemented 8|Page . CEO.  Understand the Carrefour’s presence in various stages of supply chain.  To analyze the various systems implemented and the possible areas of improvement Scope of the Study To understand the supply chain of Carrefour India with respect to the following attributes:             Customer base in terms of revenue growth. Convenience.

Culture and Performance. K. Competition. Apart from primary research. resource and authorization constraints. interviewing and detailed analysis. there was extensive secondary research which was done in order to understand the global functioning of the various Carrefour outlets and also to validate its Supply chain execution in India. Customer needs. a detailed interview was conducted with the Supply Chain manager of Carrefour India. Darpan was obtained from Dr. Technology. Supply chain and Distribution network. Infrastructure. the categories under Change Factors were Globalization. Under the Continuity Factors fell the categories such as Customer base. Similarly. Due to obvious time. V. Instead. New opportunities.Mrs. the Supply chain models used by multi-brand chains such as WalMart were studied while brainstorming for a possibly improved Supply chain system for Carrefour India. Also. Mergers and Acquisitions and Government policy and legislation. Darpan Khurana as part of the crucial primary research which is critical for studying such activities. 9|Page . The questionnaire which was utilized for interviewing Mrs. Gupta and contained 51 questions which broadly fell under Continuity Factors and Change Factors. Core competence. it was not possible for the authors to conduct similar exercises to analyze the Supply chain.Methodology In order to do a detailed study on the Supply Chain Management of an entity as huge as Carrefour would take months of observation.

But direct marketing (i. This helps to keep the costs low as well as shorten the supply chain. The client mix of a cash and carry mainly constitutes HoReCa and mom and pop stores which typically purchase goods in bulk. Major share of investments are needed in sourcing and warehousing and logistics. Sudden Increase in sales. Customer retention is being focused on by 10 | P a g e . This is where the actual delivery is carried out. Carrefour’s Cash and Carry also distributes products of private labels. is strictly followed by CCC. Currently the inventory costs in Carrefour’s Cash & Carry are very high. capital costs are quite high. better inventory management. Stock Out happens due to Less Buying from Manufacturers. Some star products keep on changing but some stay consistent. ERP systems are being implemented almost everywhere in CCC. Stock out & Sales Loss are two major concepts in this stage of SCM. Carrefour’s cash and carry operations shorten/optimize the supply chain and eliminate the high costs associated with a fragmented supply chain. Almost 90% of the goods are locally produced. Seasonal Factors etc. a C & C model entails huge investments in inventory as it has to stock a wide assortment across verticals and brands under one roof. restaurants. it is crucial for the companies to: • optimize inventory levels • minimize stock levels and • improve working capital management Some of the technologies used to attain the above by C & C operators across the world are Radio Frequency Identification (RFID) and smart sensors. and leads to higher profitability. even though these products don’t have a high growth rate in India as people are very brand conscious. Carrefour is present in the fourth stage of the Supply Chain Management – Buying-ProductionWarehousing. sourcing directly). In order to reduce stock—outs and also to improve customer service levels. It procures the food products and other goods from local manufacturers. Hence. Since the organized wholesalers and retailers are in a position to directly procure goods from the source. Sales Loss is a result of Stock Out. low-margin business and their clientele include hotels. By doing this.Distribution.Existing System The Indian government permits 100 per cent FDI in wholesale cash and carry (C & C) operations wherein players are allowed to sell goods only for business purposes and not personal consumption. It is a high-volume. do away with middle men and thereby eliminate multiple profit points. they assist unorganized retailers to increase their margins. There is a lot of logistics involved in this phase. where above light consists of warehouses and below lights consist of shelves/products. caterers. Planogramming which is an inventory control and merchandise display technique that enables a retailer to maximize shelf-space utilization. A C&C business is a business-to-business model where the size of operations is much larger than a hypermarket retailer and hence. Cash & Carry is aB2B wholesale format where goods are purchased in cash.e. reducing wastage and transaction costs (which leads to higher prices). corporates and mom-and-pop stores. It has the above light and below light concept.

high promotions.passing on the benefits. push other products during unavailability of star products. It is difficult to comment on the employee satisfaction in the organization as it has been just one and a half years since CCC opened in India. but it can be highlighted that none of the employees have left the company since its inception. Diagrammatic representation of the Existing Supply Chain at Carrefour India: Data Collection 11 | P a g e . down rate the products etc.

c) Technology – Research & Development expenditure. e) Supply Chain and Distribution network – Stages of SCM in which the organization is present. HR skills and training expenses on current technology. Profitability. c) Competition – Type of competition in the industry. e) Technology – Industry spend. g) Performance – Customer Satisfaction Ratings. customer retention rate and customer management investments. substitute products available. number of patents. legal barriers and government support for promotion of the industry. Quality performance and Delivery performance. 12 | P a g e . revenue growth rate. g) Government Policy and Legislation – Extent of FDI allowed. Among the CHANGE factors.The continuity and change factors were analyzed with respect to Carrefour’s Cash & Carry. d) Core Competence – Degree of differentiating advantage and future core competencies. import and export trade tariffs. Among the CONTINUITY factors. Vertical Integration (VI) potential and level of existing entry barriers for global players. global & domestic brand equity and brand liquidation costs. d) Customer Needs – Knowledge of customer about CCC’s products and services. ERP/SCM investment. f) Culture – Organizational structure. f) Mergers & Acquisitions – JV/Alliances and domestic & global mergers and acquisitions in the industry. the following were analyzed: a) Customer Base – Current market share (for key offerings). b) Infrastructure – Fixed assets and other facilities owned by organization. number of companies owned. the following were analyzed: a) Globalization – Extent of globalization of the industry and extent of globalization of the organization b) New Opportunities – Availability of new opportunities with existing technology & maturity of the existing technology. changes in customer’s requirements and customer loyalty ( if measured). level of clear definition of strategy and core values of organization. industry adaptation and possible implementation regarding new technology. supplier development expenditure and inventory costs in terms of percentage of revenue.

Inventory Costs are believed to be very high. of patents and training expenses are also below average. Overall the Infrastructure is for now not a major issue as the Organization has very deep pockets. • Infrastructure: Fixed assets & other facilities as perceived by their responses are adequate.Data Analysis Continuity Factors • Customer Base: Carrefour till date believes that they have a medium share of the market they’re targeting. It’s been less than 4 years in sustaining the above advantage. also realizes this as a pain point. • Technology: R&D expenses are significant and the HR skills comprehended presently are perfect. although leveraging it could be a tedious job. is present in only one. Summing up they believe they have a good penetration of their cash n carry target market in India. although they have the realized the need for more company owned service outlets. Core competence is maintained presently but for steady survival in Indian Market the key will be to sustain and develop core competences in the future. The technology constraints are understandable as the future market prospect can’t be predicted. Fewer no. • Supply Chain and Distribution Network: The stages in supply chain are higher than 4 but the Org. Investment on supply chain as a percentage of the revenues is around 15% which needs to be increased and the Org. but to sustain core competence it is justified. The cost and effort in cultural transformation is significant which falls in line with the present • 13 | P a g e . knowing this they have a good revenue growth rate and a customer retention rate. Future core competencies identified are insignificant. CRM expenses as a percentage of the revenue are around the industry average. Culture: Organizational structure is because of late entry more process based. Brand equity because of various accolades abroad signifies the strength they possess. • Core Competence: Differentiation advantage is high as the perceived value to customer is high.

Legal Barriers for the same reason have a stronghold on the industry. profitability. New Opportunities: Availability of Technology is an advantage with Carrefour and the industry is still immature in terms of Technology. Govt. Govt. As per the above mentioned competition in the market there are 3-4 substitutes to their key offering . Entry barriers are neutral owing to the fact that FDI may be the regulatory factor. support is insignificant. quality performance and delivery performance is sustainable in the present scenario. like Europe and Asia (Hong Kong etc. • Performance: Performance in terms of Customer satisfaction ratings. except a few. Policy and Legislation: Extent of further FDI in the industry is almost nil. Mergers and Acquisitions: JV and alliances in the industry are almost none. Change Factors • Globalization: Owing to the fact that Global brands like Wal-Mart are working the same market the extent of Global brands is high. • Customer Needs: Knowledge level of customers is mediocre and requirements by the customer are under a check. • • • 14 | P a g e . Clear strategy is being followed and they have a clear vision ahead.immaculate HR skill. Competition: Type of Competition in the industry is ranging towards only 3 or 4 major players. Vertical Integration is visible all throughout the industry. Carrefour itself has immense presence all over the world markets. Core values for the whole organization are focused. though Globally Carrefour has used local players to establish in the market.). though loyalty could be attracted by customizing the product.

• Carrefour can set up regional Warehouses pan-India whereby their outlets which are in and around the 150km radius can be replenished by the warehouses. for example. the stock requirement can be identified and stock can be sent to these retail stores on a weekly or twice-in-a-week basis using a ‘milk route’ travel by a supply truck of Carrefour. Carrefour believes that this flexibility of purchasing strategy does not only cater the needs of local customers. The goods which are imported. a warehouse shortage.Proposed System Organizing the Retail Sector Since the Indian consumer is price centric. Carrefour could set up value in supply chain by making huge investments to counter the expensive real estate. From the regional warehouse. the inventory requirement for them can be stored at certain CnC stores which have close proximity but a large enough storage space. • *‘Similar to Wal-Mart. Zhejiang Province. the products will be taken via road to the respective outlets. from where it can be taken by air/train/truck to the regional warehouses for distribution. For smaller retail stores. They need to set up joint ventures with local producers and thus ensure supply chain proficiency. but also can lower the purchasing costs. already established 11 sourcing bases in big cities in China since 1995 and plans its 12th sourcing base in Yiwu. • • The food. However. the 15 | P a g e . Carrefour need to be foresighted to make relevant local connections and set up logistics to manage its operations to implement top performing formats. can be send to a central warehouse near the port. and congested roads by spending at least 20 billion rupees ($382 million) on supply systems and force local retailers to do cash purchases and give shorter credit periods wherever economically viable and thus enjoy higher discounts on the bulk purchases and pass on the advantage to the end consumer. vegetables and other such fast expiring products can be stored in-house itself for each outlet. Carrefour also purchases most of its goods within India. Carrefour has. Setting Up Base for Post Reforms Period Once 100% FDI is allowed by the Government. In addition. Using ERP systems or similar communication tools. each store of Carrefour abroad has around 85% of its stock procured locally and has them distributed directly to each store.

reduction in transportation and handing costs. Utilization of local suppliers Similar to how Carrefour in China obtains about 85% of its products from local suppliers. However. Cui (2003) argues that this imperfect physical distribution systems and delay of information system development in China brings higher costs and difficulties to large retailers as most suppliers are still at the stage of workshop that are unable to provide accurate and complete services on delivering. However. can be send to a central warehouse near the port. lower prices and fresher products. Carrefour India can also work on similar lines thereby ensuring close proximity to the product source and also ensuring a better understanding about the supply status. having a centralized distribution system will not be that advisable especially if they decide to expand in South India also. This facility location is 16 | P a g e .empowerment also reflects Carrefour’s flexibility in management. The disadvantage would be that the various inventory holding cots would increase due to multiple warehouses thereby decreasing the efficiency of the whole system but this is balanced due to the exponential increase in the responsiveness to the needs of the clients which is critical to the successful functioning of any multi-brand retailer. This helps reduce overall costs through economies of scale and utilization of local resources. Strategic establishment/renting of a warehouse near port The goods which are imported. this lack of centralized sourcing and distribution systems is considered to be problematic. as the special conditions of Chinese provincial autonomy and selfsufficiency. it would be recommended that Regional warehouses be created so as to act as inventory storage units for all outlets nearby (maybe to a proximity of 150kms). the products will be taken via road to the respective outlets. vegetables and other such fast expiring products can be stored in-house itself for each outlet. a centralized procurement system is difficult and costly to operate. Therefore. Carrefour’s flexible sourcing and logistic strategies enable Carrefour to save costs on distribution as well as catering the different needs of stores in each location. Therefore. It would be very difficult to supply products to all outlets within a specified time and the transportation cost will also be significantly high especially with the frequency of transportation of supplies to the various outlets which geographically scattered.’* Recommendations Establishment of Regional Warehouses based on the expansion With Carrefour India planning to increase their presence pan-India. The food. From the regional warehouse. by relying on the distribution systems of suppliers. Reverse supply chain integration might have to be done here wherein the local supplies be bought in bulk and distributed from the regional warehouse which acts as the primary distribution center for the particular product and it is transported from there to the other regional warehouses and outlets. from where it can be taken by air/train/truck to the regional warehouses for distribution. And delay in supplying products can lead to discontent both among the retailers as well as the customers which could be a setback for Carrefour India.

Offering on-call order placement & stock delivery services to key distributors Though the basic ideology behind such a move would seem to be for a good Customer Relationship. Conclusion Carrefour is one of the biggest multi-brand retailers in the world and India would be an ideal market to expand in. Utilization of Cash n Carry stores as storage units For smaller retail stores. 1. transported and send to the required distributor so as to reach the designation within the requisite time. Carrefour India will have to come out with a detailed mapping of its future activities with respect to Supply Chain Management. loaded. Using ERP systems or similar communication tools. With expansion planned in India from 2 outlets to over 15. In such instances. the Supply Chain in India will not be the same as in most of the European nations due to the lack of infrastructure. a vehicle should be allocated. Timely delivery is of essence in such instances as they become measuring rods while assessing retailers such as Carrefour. Carrefour’s Cash and Carry outlets which are bigger and if having a close proximity to the retail stores. It also reduces the transportation costs and increases the responsiveness of the system. can be used as storage units of buffer stock for the retail units. 17 | P a g e . This would be beneficial especially in India as the retail stores in the major metros do not have much floor space and so it would be difficult to use too much of their space for storage purposes. it also has an Operations perspective as it implies that on obtaining a worthy order from a distributor via telephone. Based on the forecasted necessity of the stored products. It is hoped that the above report will help in analyzing and identifying of such a suitable network and activities. The regional warehouses can also use this ERP system to keep a tab on the inventory of all products and supply/order products as per the forecasted requirements. the model implemented elsewhere has to be tweaked accordingly in order to suit the Indian environment. the inventory requirement for them can be stored at certain CnC stores which have close proximity but a large enough storage space. the products can be supplied. Thus.strategic in nature as having a warehouse near to the port itself ensures that the products are stored safely and can be re-packed so as to be swiftly transported to the regional warehouses. the stock requirement can be identified and stock can be sent to these retail stores on a weekly or twice-in-a-week basis using a ‘milk-man route’ travel by a supply truck of Carrefour which will help reduce the transportation cost through its increased efficiency.

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