8/12/2019 Enterprise Concept Logistics Management

1/2Logistics Management Retail Industry

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

Enterprise Concepts Solution for Logistics Management

Business Context

In the Retail Industry, competition has shifted from thecompany level to the supply chain level. To facilitatebeing competitive and profitable, retailers such asCarrefour now have to rely on their supply chainpartners: this requires enhanced trust and real timecommunicationbetween the retailer and its suppliers.

Limitations and concerns with Carrefours Supply ChainManagement System included, but were not limited to:

Cost competitive operations: the inability to planeffectively the supply chain operations whichresulted in increased cost during their function

Matching resources to requirements assigninghuman, financial and material resources torequirements affected both cost and efficiencyof thesupply chain.

Tied up capital in the inventory: the need todecrease the tied up capital in the inventory derivedfrom the traditional Build to Forecast productionplanning where finished products were placed in thewarehouse until they were dispatched.

Increased lead-time in procurement: a result of the

lack of real time communication between the supplychain partners and visibility through the supply chainresulted in delays in procurement.

Giving this context, the client realized that in order toobtain competitive advantage it had to achieve effectivecollaboration with its supply chain partners. This requiredall members of Carrefours supply chain to be activelyinvolved in the project by changing theirprocesses andadopt the BPM solution implemented by EnterpriseConcept.

Why Business Process Management?

BPM increases visibility across suppliers and partners -because it understands process, it understands which ofthe suppliers already have quotes in process can findtrading partners who can supply specific products in theallotted time.

BPM improves communication with trading partners.BPM offers an actual diagram of the process the retailercan share with its trading partners, thus facilitating theability to have conversations around the supply chain

and make it better.

BPM helps with logistics. For retailers, returns are ahuge problem. With a BPM system, however, they cantrack each shipment from the time it was handed off totheir third-party logistics provider.

BPM systems can scale and be modified to meetyour supply chain challenges. BPM grows along with thesupply chain and can be modified to integrate with thetrading partners systems. That ability to easily scalechange and diversity among various suppliers is amassive value proposition.

BPM helps retailers streamline workflow and captureearly payment discounts. By adding BPM to the supplychain, retailers combine relevant content and intelligentworkflow to create an effective decision-makingenvironment that is fit-for-purpose.

BPM increases efficiencies and reduces costs. A BPMsystem, by streamlining workflow, can also helpeliminate decision-making roadblocks by integratingdepartments and help businesses process invoicesmove faster.

8/12/2019 Enterprise Concept Logistics Management

2/2Logistics Management Retail Industry

Enterprise Concept Solution

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

Value Proposition

The solution aimed to optimize and automate the

logistics litigations process, respectively to solvedisparities between warehouses delivery and storesreception.There were several types of litigations in this process:

1. Qualitative2. Quantitative3. Expired items4. Anomalies5. Faulty reception

Fuctionalities

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. Business Analisys2. Invoicing Module

3. Compensation Module4. Reports

5. UAT6. Go LIVE

Return on Investment (ROI)

1. Value of resolved litigations / Markets: 594 179 RON2. Value of resolved litigations / Warehouses: 75 290 RON3. 830 receptions manually checked;

4. 95 cases including 248 litigations were managed using Mail, Cell, Excel files5. Corrective Actions:

! 73 command changes;! 52 new invoices;! 190 stock regularization.! 882 Exported Invoices.

The solution solved these types of litigations by: Matching invoices with pro-forma invoices

(receptions)

Automating validations and internalcommunication

Using reporting tools and statistics forprocess overview

Benefits

Defined the accuracy of litigations from the first steps of theprocess

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 theintended recipient

Automated invoices and stock corrections (changes pro-formainvoices, stock regularization, etc.)

Resolved disputes through accountability operations, validation,etc.

Empowered staff (reporting, traceability)

Reduced manual work and integrates it into an efficient processbased on validations and decisions, at user level

Streamlined the route of the invoice from issuance to registrationin accounting systems (automated accounting for invoices / pro-

forma invoices)

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