Overview of Groupe Casino supermarket
Disucss about the global Supply Chain Management of Groupe Casino Supermarket.
This report describes the global supply chain management of Groupe Casino supermarket, a retailer industry in Congo country (Christopher, 2016). Groupe Casino is a leading player in the French non-food retailer market with Cdiscount and has established various basic need e-tailing arrangements under its standards. The report explains the main features, obstacles and challenges of the supply chain of the company, the methods which show the inter-organizational connections reinforce supply chain integration, and the utilization of advanced technology by companies to sustain competitive benefits. The main objective of this report is to accomplish effective satisfaction of requirements, drive good customer value, increase company responsiveness, establish organize strength, and encourage financial achievement.
Groupe Casino supermarket offers a full, competitively priced range of food items with an average of 13000 SKUs, including major goods, a big portion of the Company brand products and fresh items, and a determination of local specialists. According to Li and Jialing (2011), the highly expanded non-food line-up caters the daily requirements of local consumers. The banner's positioning of a company refers to a promise to delivering low costs, ensured quality and a shopping knowledge that makes life simpler. Casino supermarket wide offerings are depending on the main four characteristics which are explained as follows:
Pre-dominance of company level: According to Stadtler (2015), the Casino Group portfolio contains many private marks covering a board range of gourmet, family, natural, apparel, fair trade, board-based discount. The company brand is one of the outstanding selling private labels in France at the present time in terms of penetration rates such as company own-brand sales with respect to total store sales. The vast majority of the company private labels items for material, home, and nourishment categories are produced through its sourcing division and Casino Global sourcing which headquarter are situated in Hong Kong.
Augmentation and value-added presentation of products: According to Agrawal and Smith (2015), company strategy is based on the concept based differentiation in order to set the standard for delivering their product and services to the customer. The company returns to the traditional skill in fresh products with the powerful and distinct methods, and marketing value-added products and service remain in dramatic settings, for example, bakery butcher, fruit, fruits, and vegetables. The expansion of self-service segments makes the purchasing simple for the customers. The company concentrates on the item quality, originality and associated with changing customer conduct by categories and store.
Main features of Groupe Casino supermarket
Development of new non-food ideas: According to McCormick and Livett (2012), company idea is intended to make the innovative products for the customers, pleasurable experience, with motivated staff, pleasant format, quality fittings, clear signage that coordinates activity effectively and unique non-food offerings.
Low costs: The cost-cutting policy was an achievement for the Casino supermarket, which enjoyed a surge in both food and non-sustenance sales volume and an expansion in income in the final quarter. The banner is proud to be the co-value pioneer in the supermarket segment.
On the other hand, the main barriers faced by Casino supermarket in the supply chain are explained as follows:
Uncovering Technologies: According to Chkanikova and Mont (2015), Casino supermarket is driven by developing calls for transparency is starting to use new technologies to give provenance information to the marketplace. Uncovering technologies will become a necessary part of building trust and securing image. The key innovations are not new, but the company is developing and mixing to release new opportunities and threats (Sarac et al., 2010). Product labeling has been changed by microscopic electronic gadgets, genetic markers for agricultural items, and a new generation of standardized tags that can be read with standard cell phones.
For example The Casino Group will offer Lyon residents a new, fun approach to shop in a hurry. Utilizing their cell phone and the mCasino application, they will have the capacity to do their shopping rapidly and afterward either have it conveyed or get it at Casino Shopping stores in Lyon. Keeping in mind the end goal to make the administration available to as many individuals as possible, the mCasino application not just enables items to be chosen by means of the QR code, but also by means of NFC labels and picture acknowledgment.
Changing Marketing: As consumers take a greater interest in the origins and validness of the things they purchase, giving them with instruments to track provenance that will become an essential part of the marketing mix and will provide manufacturers and distributors new ways to expand on brand value. Casino supermarkets retailers have used creative services from France supply chain services.
For example: Casino group have used a creative service from Central Africa supply chain services. The frameworks empower grocery suppliers to gather and submit data about products, with an attention on ensuring that items are not produced from other retailers that were harvested with child labor. This information used internally, enabling the organization to be more certain about creating moral claims about their products.
Obstacles and challenges faced by Groupe Casino supermarket in the supply chain
Anticipating the risk: According to Papakiriakopoulos and Pramatari (2010), new innovations will give visibility into the modern framework of the industrial system. Even if the organization selects to hold their provenance information under wraps, they will have no certification that activist and campaign gatherings or even contenders will be so hesitant. The explosion of worldwide electronic communication empowers those who wish to pull down the corporate image just as it offers firms the opportunity to establish trust.
For example: The warning comes after Casino last week issued final quarter outcomes, which represent that it is continuing to endure in Latin America, especially in the recession which hit Brazil. The total sales in the final quarter dropped by 14.6 percent in Latin America as compared to a 1.5 percent increase in sales in France. Group sales for the final quarter fell 11.2 for every versus a year sooner as foreign trade developments also conflicted with the retailer. Despite the fact, the reasonable execution in Casino’s home market of France, S&P said it sees the organization overall execution as weak, with regards to the group high leverage using relative consolidation and its genuinely low scope measurements at the French operations, where most of the group's obligation sits.
According to Fernie and Sparks (2014), the main challenges faced by Casino supermarket are explained as follows:
Better communication: Communication is one of the main biggest organizational challenges that a company faces. As Casino supermarket begin changes to their business, effective communication among employees and supervisors will become an essential part of identifying whether or not those changes will be accomplished (Rushton et al., 2014).
For example, In order to overcome this challenge, Groupe Casino enabling the workers through online communication instruments could help employees with the data they require to enhance consumer benefit. The adoption of online communication enables the Company to keep their employees involved and connected
Operational inefficiency: According Lee et al. (2012), handling complexity and fast change is likely the most difficult thing for a retailer to do, but is it essential to maintaining an efficient operation. Lack of communication, cooperation, and consistency across the company are hampered by storehouses of data and absence of visibility across main supply chain activities (Ross, 2013). Dependency on manual and bulky procedures keeps organizations down and operations running on spreadsheets are not versatile.
For example, Casino group can establish a more effective supply chain which includes upgrading resources, accelerating product life-cycle, decreasing stock and empowering more communication and cooperation across inner and outside stakeholders. Supply chain procedure upgrades supported by best in class innovation allow the company to relate disparate functions and empower true end to end supply chain cooperation.
Quality and regulatory compliance: According to Akkerman et al. (2010), customers expect quality items regardless of whether they are branded, personal and restrictive label and they consider retailers responsible for provider quality. At the same time, consistence is expanding in complexity as governments and buyer bodies mandate larger legitimate measures and quality standards (Zhang et al., 2010).
For example, procedures and frameworks, which proactively handle, track, upgrade, and report on quality and consistence information relieve risks and protect downstream issues. The company approaches towards consistence of best in the class retailer in corporate, working with the providers, accomplices in order to construct administration capacity, preparing specialist and supervisors on labor rights, security conventions, and tracking performance indicators.
Supply Chain management is the synchronization of materials, information, and cash related streams all together to,in terms of time to market, dexterity, and decrease in prices. According to Tangpong,et al. (2010), in the present aggressive business condition, supply chain management is thus become an essential part of competitive edge for organizations. Supply Chain Management as well as the administration connection over different and complex systems of organizations that while lawfully free is in reality independent. Handling the supply chain in a proficient and performing way enables the worldwide chain to enhance its competitiveness.
French accommodation and hypermarket retailer Casino's most squeezing challenge was to enhance information and availability over the whole supply chain. Its stock administration process was depend on the different, decentralized databases, engaging four store-level item administration frameworks, and a different product database for every warehouse in operation. As an outcome, because of diverse product level data such as quantity, quality, accessibility, and area, there were important special cases in product offerings. According to Sarkis et al. (2011), Casino required enhanced and simple access to the most recent product data, and the capability to rapidly and efficiently examine the information. The retailer chose to unite all its information together into one centralized source, for example, product specialist, and give an ordinary line and announcing customers as well as exchanging accomplice’s customers. The company also required to convince customers to leave the solace of departmental databases and spreadsheet with greatly customized interfaces and detailing facilities. Casino222 depends on its positive experience of accessing stock administration disparities in different business units, Casino supermarket select Aldata Gold answer for address its supply chain management requires and as the best course to utilizing information technology in order to support the further expansion internationally.
Aldata suggested a staged, instead of an all-at-once way to deal with executing another framework over the supply chain. In order to align information technology activities to set an new inner business procedure, Casino set up progression of controlling advisory to overlook distinct parts of the execution, counting stockroom operations, stock floor, and store operations. Every guiding council included a venture pioneer, programming customers, and administrators shows various departments (Cao and Zhang, 2011). The retailer builds an overriding standard during the execution that there can be no adjustment in programming if there is no change in the procedure. It indicates one day per week during the execution of the survey its venture administration practices. As well as change administration, there were the other barriers that required to be examined. The new software had not just to help enhanced procedures, as well as it must be in backward compatible as well. Aldata solution connected its set up Gold system, which refers that, during the establishment of an information technology solution, Gold specialist collaborates with the customer's personnel to empower the foundation of a concentrated and devoted team to effectively implement the task.
Aldata and Casino initially settled a list of essential information technology necessities, for example, the capability of new innovation to interface with the previous frameworks, while the change was made. After a close review of existing procedures, Aldata and Casino decided to start the item administration project with supermarket places, which responsible for 80 percent of entire hypermarket action. According to Cheng (2011), Aldata and Casino start execution of Gold WMS in warehouse operations, beginning with solidified nourishments and other product lines with few, restricted stock keeping units demands. The retailer then executes common merchandise places into the Gold centralized database solution. Casino and Aldata create various adoptions to the customized solution, based on the response of guiding groups, and employees from supermarket warehouse, and merchandise areas.
Benefits: By executing and incorporating supply chain management solutions form big business frameworks vendor Aldata, Casino has possessed the capacity to enhance its stock administration and satisfaction practices by building a separate, centralized, online product management solution. The casino had set up and executed the streamlined product administration procedure and the Gold supply chain solution in 26 out of 30 warehouses, 10 out of 260 supermarkets, and one out of the 4250 convenience stores. At these areas, the retailer has diminished product exceptions and mistakes, increased product data availability, and enhanced overall income. The solution has been executed stores in Europe, USA, Asia and Latin America.
Anticipating the risk
With the growing globalization of retailing, both as far as their purposes of-offer and their purposes of-supply, the advanced technology play an important role in the retail industry has expanded essentially. According to Liu et al. (2013), the advanced technology assumes an increasingly critical part in the administration of complex retail operations. New advancements continue to reshaping the retail industry and in unexpected ways. Supply chain management is concerned with the stream of items and information between supply chains person's associations. Latest improvements in advancements empower companies to access data without difficulty on their premises (Lee et al., 2010). These advancements are useful to organize the activities in order to handle the supply chain. The price of data is diminished because of the expanding rate of advancements. Therefore, the following advanced technology enables casino supermarket to maintain a competitive advantage:
Internet of things: According to Vermesan and Friess (2014), internet of things is a tool of interconnected computing equipment, mechanical and digital devices, things, or human being that are offered with special determiners and the capability to exchange information over a network without the need of an individual or any electronic device. The Casino Group will offer Lyon occupants a new, fun approach to shop on the go. Using their smartphone and the mCasino app, they will have the capacity to do their shopping fast and afterward either have it conveyed or get it at Casino Shopping stores in Lyon. For example, Casino is offering customers access to a world first with an inventive acquiring solution based on picture acknowledgment and NFC contactless payment, two advancements that empower consumers to use their smartphones to choose an item in a matter of seconds. The casino is also developing in the field of customer services by giving the following benefits:
Access to meal proposals planned by theme and with items cost prominently shown, making it simple to organize the evening meal and get detailed item data such as ingredients, structure, and nutrition.
The choice to pay for pick-up or delivered at home when the shopping is done.
Big Data Analytics: According to Chen et al. (2012), Big Data Analytics examines a lot of data which uncover concealed patterns, relationships, and distinct experiences. With today's technology, it is feasible to assess company information and find answers very quickly with more traditional business intelligence solutions. The Big data analytics enables the organization to handle their information and use it to determine new opportunities. This advanced technology also prompts for intelligent business moves, more productive operations, higher benefits and satisfied customers. The big data analytics also useful for organizations in various ways such as cost reduction, better decision making, and new items and services. Big data analytics assumes an imperative part of the price control.
Main challenges faced by Groupe Casino supermarket
For example, previously Casino group used to change their stock cost which is based on the changing demands of customers. The company having the presumption of less demand, and they used to decrease the cost. However, after executing big data, Company will have the data that are data-were driven and cost that are optimized based on the constant demand. With the updated and analyzed big data, prices can be modified any moment as per the requirement.
Cloud computing: According to Alshamaila et al. (2013), cloud computing is a data innovation paradigm that empowers universal access to shared pools of configurable framework resources and more elevated services that can be quickly provisioned with minimal administration exertion, often over the internet. Cloud computing is based on sharing of assets to achieve coherence and economy of scale, as a utility. It emphasizes companies to consume a computer asset, such as a Virtual Machine (VM), storage or a function as a utility. The utilization of cloud computing by Casino supermarket is very useful for the company in order to maintain their competitive advantage:
Better channel operations: According to Cusumano (2010), cloud-based solutions can enhance the system and deliver more customized consumer experience. Retail as a Service (RaaS) can incorporate the diverse verticals like stock and order preparing which make better restocking abilities. The main benefit of cloud computing for Casino supermarket is the lower price and higher efficiency.
For example, every Casino banner profits by a particular separated positioning to meet distinguished customer requirements. The expanded portfolio of casino supermarket deploys its net in France work of more than 10,500 stores by adjusting the outlets to various customers’ typologies, local lifestyle and the encompassing urban, rural environment.
Larger supply chain visibility: With cloud computing, the retailer can have an enterprise-wide supply chain visibility. This advanced technology helps companies to catches continuous status of consignments digitized records from providers, transporters, logistics suppliers, and dealers.
From this report, it has been concluded that supply chain management is the organized and the strategic coordination of management for providing goods and items required by the end consumer. This report explains the global supply chain management of Casino Supermarket. The report describes the various features of organization which make its superior in terms of retailers. The report also explains the challenges and barriers which organization faced in the supply chain management. Casino supermarket maintains a good relationship with the suppliers which make its supply chain more effective. The organization also used advanced technology in their supply chain management which helps the company to maintain the competitive advantages.
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