School of Business & Accountancy
Logistics Management Course
Warehousing and Storage System
1. Introduction and Overview
Carrefour Corporation, the founder of hypermarket, the first largest retailer in Europe, and the second largest retailer in the world, was founded in 1959. In 1963, Carrefour opened the first hypermarket in France. Today, Carrefour has opened more than 11,000 retailers, its business range cover 30 countries and districts.
The Corporation has three main types of operating which lead the market: Hypermarket, Supermarket and discount store. Besides, Carrefour also developed convenience and member stores in some countries. In 2004, total sales amount of Carrefour arrive at 72.668 billion euro, more than 430 thousand employees. In 2005, Carrefour ranked 22nd in the global top 500 enterprises.
In China, Carrefour began to enter its market in 1995, using international advanced supermarket management model, focusing on providing high quality and service with low price to all of customers, which praising it. Some theories of Carrefour are deeply in to people’s mind such as “Happy shopping Carrefour”, “one stop shopping service” and so on. At present, Carrefour has opened 109 stores, and hired about 30,000 employees in China. 2004, Carrefour (China) had been rated one of “the most influential enterprise in China” by domestic media.
The success of Carrefour due to its Precision and scientific Management, the factors are performed in 6 aspects: 1)
Location selection scientific;
Strong item management system
Powerful function supported by computer
Efficient field management
Complete enterprise culture and strong loss prevention consciousness.
However, any enterprise want to achieve good operation on above 6 factors, it must have a good enough warehousing and storage system to support it.
In this article, we decide to research the storage and warehousing system in Carrefour, find some characteristics, strengths and weakness of it, then make some recommendations which can improve the operation about the current system.
3.2.1 Warehousing and Storage System (From Wikipedia) Warehousing and storage system refers to the mix of devices and operation strategy during the process of goods sorting storing, or receiving. It consists of Capacity, goods, equipments, facilities, labour, operation and management system and so on.
3.2.2 Barcode (From 《WHSS》CHAPT 7)
The most commonly used automatic identification system today. The bar code itself consists of a sequence of thick and narrow coloured bars separated by thick and narrow spaces separating the bars. The pattern of bars and spaces is coded to represent alphanumeric characters in a machine-readable form. There are many types of bar code, each with its own characteristics. A bar code has a specific symbology. 3.2.3 RF (radio frequency) Technology (From 《WHSS》CHAPT 7) Radio-frequency (RF) systems use low power (ranging from few mW to 7W) radio frequency signals for interactive exchange of information, including on-line inquiries and record and file updates, between a host computer and a user operating a portable or mobile RF terminals. A RF system consists of:
a) Host computer
b) System network controller (SNC)
c) Radio local area network controller (RLC)
d) RF terminal.
3.2 Application (Warehousing management and Logistics model of Carrefour in China) There are several types of logistics distribution methods:
1) Third party logistics model (3PL): suppliers sign the contract with third party Logistics Company, goods will be sent to Carrefour by the company. 2) Suppliers’ distribution directly: suppliers will use own resources to distribute goods to Carrefour. 3) Suppliers’ joint distribution: for reducing cost, more...
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