Q4

Carrefour entered the United Arab Emirates (UAE) market in 1995 and it has been actively performing in
the retail segment of the country. The company first entered into the country with a mission on
expansion to the rest of the Middle East. In Dubai, it relies on a joint venture with Majid Al Futtaim
group that allows it to grow rapidly and cover the entire country and its neighbors.

Objectives

The various objectives of Carefour are:

 The company has a global reputable brand and it will use the brand to increase its sales in the
UAE.
 It is also the most internationalized retailer in the emirates and this helps it offer a rich global
experience to its shoppers. It is able to attract local shoppers seeking to experience a global
shopping outing and get items from many countries around the world.
 The internationalized concept also helps the firm attract new and talented staffs from around
the world. It is able to sustain its position as preferred employer. The company dominates the
top three positions of retail chains in the UAE and the global market. Its hypermarket strategy
allows the company to offer a wide range of goods from all over the world.
 The company wants to offer quick response services to the customers
 The company intends to avoid any gaps or bottlenecks in the supply chain through working with
reliable sources. This is to ensure the the aboidance of any stock out even at a remote retail
store.

Elements of Supply Chain

The elements of a supply chain are discussed below in the light of the supply chain objectives of
Carefour:

Integration

For supply chain integration carefour is using EDI systems to share information between all the nodes of
the supply chain and is an essential and faster mode of communication between all setups of the supply
chain. This helps the supply chain work as a single setup instead of autonomous units.

EDI was originally conceived to target “zero paper” and for data processing. This allows carefour to have
rapid and reliable information. In practice, EDI allows to reduce considerably, human intervention in
data processing, and thus makes it faster and more reliable. This allows to fluidify the information flow,
and to reduce considerably processing costs while improving the security of transactions.

Operations

The company optimizes performance through various means such as:

The supply chain local Scorecard ensures that optimization plans are identified and their performance is
tracked. Measuring the efficiency of the supply chain allows them to identify opportunities for achieving
operational excellence. Also, the company uses an international Scorecard and has a dedicated team
that have to evaluate special indicators.

In addition to these warnings, the benchmark between the suppliers of this category is to determine the
best in class. However, the focus on the supply chain improvements is supported by the effective system
of response to the customers.

It should also be mentioned that the company uses ECR concept. This concept is a development of the
method of "Quick Response" (QR). The concept involves the use of manufacturers and retail stores of
computerized systems for automatic processing of orders when performing the same operations, which
allows you to monitor the movement of goods in the distribution network. An effective response to
customer feedback includes QR and focuses on the distribution, promotion and sale of goods.

Purchasing

A very important element of purchasing is forecasting the accurate demand. The best method used by
Carefour for this purpose is that they use general forecasts for better estimation of the number of
orders and replenishment of stocks.

Through a joint forecast of sales planning and replenishment, the suppliers and seller combine their
competencies and data to establish the most realistic replenishment planning. This sharing allows one to
improve availability on the shelf, reduce inventory and inventory of the catalog.This helps to reduce the
stockouts at various retail outlets and to manage the inventory.

The operating system for data collection consists in the exchange of fresh and detailed POS data to
initiate corrective actions in the supply chain such as identification or prediction of stock availability,
better management of production and delivery to launch or promote the product, better management
of time to market. It also contains the main information about sales and financial results.

Distribution

Carrefour uses three main distribution channels to reach its customers in the UAE. These include
hypermarkets, supermarkets, and discount stores. These channels are mainly used to sell consumer
goods and groceries. The company also uses convenience stores, foodservice stores, and virtual stores
to distribute its products. The convenience and foodservice stores are mainly used to distribute food
products. The company’s virtual store is an e-commerce platform that enables customers to shop online
through the company’s website rather than visiting the physical stores.

The virtual store improves shopping experience by enabling customers to make their purchases at their
convenience. Using several distribution channels has two advantages. First, it enables the company to
serve particular market segments. For instance, foodservice stores cater exclusively for customers who
are interested in purchasing food products. Second, the distribution channels improve the company’s
brand visibility by enabling it to serve as many customers as possible. Since the purchasing culture in the
UAE promotes shopping within malls, the company has established most of its stores in large malls in
order to increase its sales.

The company’s promotional strategy involves using adverts to create awareness about its products. The
adverts are placed in print and electronic media, as well as, the company’s stores and website. Given the
cultural diversity in the UAE, adverts can only be effective if they are adapted to the needs of the local
market. Thus, Carrefour has adapted its adverts in the UAE by writing them in both English and Arabic to
overcome language barriers. As a low price retailer, Carrefour uses discounts as a promotional strategy
to attract customers. For instance, holders of the company’s Najm card enjoy up to 4% discounts
whenever they purchase items at any of the company’s outlets.