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Enterprise Concepts Solution for Logistics Management

Enterprise Concept teamed up with Carrefours CFO and stakeholders from various departments to optimize and automate the logistics litigations process, respectively to solve disparities between warehouses delivery and stores reception.

Business Context
In the Retail Industry, competition has shifted from the company level to the supply chain level. To facilitate being competitive and profitable, retailers such as Carrefour now have to rely on their supply chain partners: this requires enhanced trust and real time communication between the retailer and its suppliers. Limitations and concerns with Carrefours Supply Chain Management System included, but were not limited to: Cost competitive operations: the inability to plan effectively the supply chain operations which resulted in increased cost during their function Matching resources to requirements assigning human, financial and material resources to requirements affected both cost and efficiency of the supply chain. Tied up capital in the inventory: the need to decrease the tied up capital in the inventory derived from the traditional Build to Forecast production planning where finished products were placed in the warehouse until they were dispatched. Increased lead-time in procurement: a result of the lack of real time communication between the supply chain partners and visibility through the supply chain resulted in delays in procurement.

Why Business Process Management?

BPM increases visibility across suppliers and partners because it understands process, it understands which of the suppliers already have quotes in process can find trading partners who can supply specific products in the allotted time. BPM improves communication with trading partners. BPM offers an actual diagram of the process the retailer can share with its trading partners, thus facilitating the ability to have conversations around the supply chain and make it better. BPM helps with logistics. For retailers, returns are a huge problem. With a BPM system, however, they can track each shipment from the time it was handed off to their third-party logistics provider. BPM systems can scale and be modified to meet your supply chain challenges. BPM grows along with the supply chain and can be modified to integrate with the trading partners systems. That ability to easily scale change and diversity among various suppliers is a massive value proposition. BPM helps retailers streamline workflow and capture early payment discounts. By adding BPM to the supply chain, retailers combine relevant content and intelligent workflow to create an effective decision-making environment that is fit-for-purpose. BPM increases efficiencies and reduces costs. A BPM system, by streamlining workflow, can also help eliminate decision-making roadblocks by integrating departments and help businesses process invoices move faster.

Giving this context, the client realized that in order to obtain competitive advantage it had to achieve effective collaboration with its supply chain partners. This required all members of Carrefours supply chain to be actively involved in the project by changing their processes and adopt the BPM solution implemented by Enterprise Concept.

Logistics Management Retail Industry

Enterprise Concept Solution

The Enterprise Concept Logistics Management Solution provided Carrefour with a tool to improve the relationship between stores and warehouses, thus having a direct impact on the relationship with customers and the company performance indicators.

Value Proposition
The solution aimed to optimize and automate the logistics litigations process, respectively to solve disparities between warehouses delivery and stores reception. There were several types of litigations in this process: 1. Qualitative 2. Quantitative 3. Expired items 4. Anomalies 5. Faulty reception The solution solved these types of litigations by: Matching invoices with pro-forma invoices (receptions) Automating validations and internal communication Using reporting tools and statistics for process overview

Views and solves the tasks (along with information about reception and related products) Views sent notifications Keeps a history of the decisions Generates reports and statistics Views and modifies user information Provides technical support for solving the problems and tasks associated with each user.

Phases - Approach
1. 2. 3. 4. 5. 6. Business Analisys Invoicing Module Compensation Module Reports UAT Go LIVE

Return on Investment (ROI)

1. Value of resolved litigations / Markets: 594 179 RON 2. Value of resolved litigations / Warehouses: 75 290 RON 3. 830 receptions manually checked; 4. 95 cases including 248 litigations were managed using Mail, Cell, Excel files 5. Corrective Actions: ! 73 command changes; ! 52 new invoices; ! 190 stock regularization. ! 882 Exported Invoices.

Defined the accuracy of litigations from the first steps of the process Created a database in which all information is stored. Optimized and automated litigations communication methods (Excel tables elimination, dozens of email addresses elimination, etc.) Reduced the risk of failure in forwarding the e-mail to the intended recipient Automated invoices and stock corrections (changes pro-forma invoices, stock regularization, etc.) Resolved disputes through accountability operations, validation, etc. Empowered staff (reporting, traceability) Reduced manual work and integrates it into an efficient process based on validations and decisions, at user level Streamlined the route of the invoice from issuance to registration in accounting systems (automated accounting for invoices / proforma invoices) Logistics Management Retail Industry Before implementing the solution: Duration 1 day at least Resources Involved 3, 4 persons By using the solution: Duration 7 minutes Resources Involved 0 persons Measurements: ! ! ! ! ! ! 118,263 invoices and receptions 19,793 litigations 2,124 bills created 5,090 command changes 15,673 stock adjustments 61,325 invoices exported