1. "Carrefour and Unilever deployment of a Global Supply Chain Strategy"

2. Carrefour, a global presence in 26 countries
n°1 France
n°1 Spain
n°1 Belgium
n°2 Italy
n°1 Greece
n°1 Brazil
n°1 Argentina
n°1 Taiwan
n°1 Indonesia
561 hypermarkets
1324 supermarkets
2611 deep discounts stores
788 other store formats
More than 9000 stores under banner

3. The second one, focus the brand portfolio, now this is a topic I personally could talk for three hours about, but I won’t, because Clive and Lex are going to deal with this in this conference.

4. Unilever at a glance
We sell our Home & Personal Care and Foods brands in 150 countries
Overall 1999 turnover of US$ 45,790 million
43rd by turnover in the Fortune 500 list of largest companies (August 1999)
Recent major acquisitions: Amora Maille (F), Ben&Jerry’s (USA), Slim Fast (USA), and Bestfoods (USA)

5. Carrefour objective The excellence of the supply chain:
No out of stocks on the shelf
Lowest total inventories
Faster cycle times
Automation of all information flows
Lowest total delivered cost (supplier to shelf)

6. Carrefour supply chain vision
The target organization:
Cross-docking
platform
Supplier
Store No
Backroom
inventory
Daily sales &
inventory data
Daily sales
& inventory data
per store
Integrated information system
EDI
Continuous replenishment (A to B delivery)

7. One of Carrefour’s Key Strategies
Collaborative approach with our suppliers
More sharing of information
Greater supplier involvement in the replenishment process
Greater accountability:
Shared objectives
Inventory levels
Cycle times
Service rates, etc, …
Performance indicators and score cards

8. Carrefour and Unilever scope of operations
Commercial relationship in all Carrefour Countries
Involvement of 57Unilever Companies
Across all Unilever categories
Mutually important business partners
With a shared ambition for growth and operational global excellence

9. Carrefour & Unilever - A mature Supply Chain in Europe
EDI rolled out at 100% in all major countries
CMI with common tools and processes
Building experience with ABC costing
… and Product Availability & Traceability
Results
Improvements in Service levels
Significant costs reduction
Robustness of operations
Better integration of work flows

10. Definition of a Global Common Supply Chain Strategy
Corporate commitment to promote process improvements globally
Use a standard scorecard to monitor current situation
Implement Best Practices
EDI
Co managed inventory
Global roll out plan for overseas regions (Latin America and Asia)
Close cooperation on plan management

11. Implementation of the strategy in Asia and Taiwan in particular
Asia is the fastest growing Carrefour region
Capabilities and openness on new technologies
Three priority countries:
Taiwan
Korea
Thailand
Taiwan the biggest Asian country for Carrefour
An adapted infrastructure for a facilitated roll out

12. Scorecard
SPECIMEN

13. Scorecard
SPECIMEN

14. Scorecard
SPECIMEN

15. Scorecard
SPECIMEN

16. Scorecard
SPECIMEN

17. Scorecard
SPECIMEN

18. Co-Managed Inventory (CMI)
PHYSICAL STOCKS
MOVEMENTS
FORECASTS + 
STOCKS & WHAREHOUSE MOVEMENTS 
ORDER
PROPOSAL
CLIENT
DELIVERY
ORDER
CARREFOUR STOCK 
ORDER
CONFIRMATION
LEVER STOCK C
ORDERS L I E N T
E.D.I.
Physical flow of products 12

19. Supply Chain optimization in Taiwan very promising results
Improved service from Unilever to Carrefour’s warehouse
on time deliveries = +7%
product availability = +20%
Increased service from Carrefour ’s warehouse to stores
product availability = +11%
While
Reducing stocks by 40%
Reducing delivery lead times by one day

20. What is: ? A stand-alone profit-oriented business :
with its own management team
focused on delivering efficiency to :
the retail community,
its suppliers
through the use of internet based transaction and collaboration tools.
A business whose services are available to all retailers, regardless of equity participation.
It is not a «central buying office ».

21. Pinault Printemps Redoute
The equity members
Pinault Printemps Redoute
A global purchase turnover > to US$ 200 billion
A member’s commitment to bring 70% of this purchase amount on GNX

22. The valuable services Additional Value Added Services
Sourcing Suppliers and Products
Applications
Workflow
Applications
Catalogues
Collaborative Product Development
Web-Enabled, Dynamic Trading
Communication Tools
Collaborative Planning, Forecasting and Replenishment (CPFR)

23. Unilever: one of the chosen partners involved in GNX design and implementation
Prove transaction capabilities on the Net
Set up a migration plan from existing EDI to GNX
Develop a standardized approach for the product catalog with the other GNX partners
Build supply chain optimization capabilities (CPFR)

24. Taiwan a GNX pilot country
Two pilot countries: France and Taiwan
Pilot objective: move EDI communication to internet enabled transaction on GNX
Steps:
Prove end to end communication based on new internet protocol
Migrate current EDI messages on GNX
Parallel run to test robustness
Go live

25. A view to the future of EDI communication
Potentially:
- All countries
- All suppliers

26. Expected benefits from GNX
Unify all current processes and tools
Reduce communication costs ( Internet Vs VAN’s)
Handle existing EDI flows
Promote the use of common worldwide standards
Use in the future an easily and universally understandable language (XML)
Enable access to other GNX functionality

27. GNX pilot next steps
Roll out of Unilever Carrefour learnings to all Carrefour countries
Pursue pilot developments
Product catalogue
CPFR
Carrefour to extend process roll out to all suppliers

28. GNX a new tool for our Global Supply Chain Strategy
Global transactional capabilities
Definition and use of a global communication standard
Global data alignment and synchronization
Ability to deploy standard processes globally
Automation of all information flows with suppliers (including smaller ones) –Web EDI
Advanced Supply Chain collaboration

29. Conclusion A successful and promising collaboration:
A common and consistent strategy
A global roll out
Key learning for further implementation (new partners, new countries)
GNX, a tool to accelerate such initiatives
Most advanced technology
Wild range of functionality enabling implementation of global best practices

30. Thank you for your attention