Operations Management in Carrefour Hypermarket Qatar

[School]
[Course title]
CARREFOUR HYPERMARKET QATAR

1 INTRODUCTION
Operations management can be defined as an organization and planning of resources that are
required to the distribution and manufacture of services to consumers. The operational
management processes of Carrefour Qatar hypermarket have been analyzed in this report in
order to determine the strategies, objectives, and problems faced by it during its execution.
Carrefour is one of the famous multinational retailers that transforms the vision of
entertainment and shopping all across the world. In the current scenario, Carrefour
hypermarket operates in more than thirty countries such as Asia, the Americas, Qatar, India,
Indonesia, China, Iran, Iraq, Oman, Saudi Arabia, Lebanon, Jordan, Japan, United Arab
Emirates, Belgium, Armenia, etc. Carrefour Hypermarket offers a variety of products to
consumers in Qatar such as Microwave oven, smartwatch, tablet, laptop, mobiles, dish wash,
vegetables, fish, chocolates, chicken, fish, food items, butcheries, etc. The report aims to
analyze the production system of Carrefour Hypermarket Qatar. This report is summarized
how well the assets and inventories within the production system of Carrefour Qatar have
been managed. Along with this, the key business operations involved in the selected
production system are presented with the use of logical operational flow. This report
investigates whether the delivery system of the company properly aligns with the operational
performance measures or not. In this report, lean project management approaches have been
suggested to Carrefour hypermarket that will help to reduce the failings in the production
system.
2 CARREFOUR HYPERMARKET QATAR
Hypermarket is a combination of both departmental store& supermarket. Carrefour
Hypermarket Qatar allows customers to buy all required products or services in a single trip.
Presently, there are 10 Carrefour stores in Qatar in different locations such as Palm Mall,
Mirqab, Mall of Qatar, Dar AI Salam, Ezdan Mall, etc. The production, distribution, and
inventory management systems of all Carrefour market are similar. Products are the core
business of the Carrefour group and it guarantees the diversity, dynamics, and freshness of
affordable fresh produces (Carrefour, 2019). The quality of fresh fruits, vegetables, and other
products depends on the expertise of cheesemongers, fishmongers, pork butchers, bakers, and
growers. Baby care products, food products, non-food products (textiles, small household
goods, home appliances such as multimedia equipment, sound equipment, photo equipment,

and DVDs), etc. are main product service categories which have been provided by Carrefour
Qatar to its valuable consumers at lower prices.
3 INVENTORY MANAGEMENT IN THE PRODUCTION SYSTEM
OF CARREFOUR HYPERMARKET QATAR
In context to operations management theory, all production processes & business operations
should be performed by Carrefour Qatar in an efficient way. People skills, technological
knowledge, rational analysis, and creativity are critical aspects of successful operations
management. Customer demand is the main ingredient that likes up the production capacity
of the Carrefour market for an efficient and effective manufacturing process. The company
has deployed an effective supermarket model for managing production in order to streamline
the basic manufacturing and inventory management business operations. The organization
has used continuous production system in which material handling is fully automated which
supports a higher rate of production in less cycle time. Carrefour Qatar is acquiring 90% of
the food products and consumer goods directly from its local manufacturers in order to keep
the product cost low. Instead of waiting for customers, Carrefour Qatar hypermarket involved
all its suppliers in its product production plans and also help them for quality control and new
product research. The organization has relied on 3Pls (third-party logistics providers) in order
to perform supply chain operations at the global level in an effective way. Carrefour
hypermarket and stores in Qatar are used equipment and machinery for producing tangible
Carrefour brands. The produced items have been stored in the warehouse unit in order to
meet consumer’s demand. In the production system, there is an availability of fuel,
refrigeration, steam, and gas which have been used for the production and preservation of
food products. Along with this, cooling racks, scales, mixers, oven and various other types of
equipment and machinery have been provided to bakery staff for producing delicious food
items as per the demand of consumers. All business stakeholders including suppliers,
manufacturers, vendors, and other business stakeholders are working collaboratively as they
have to fulfill the demands of various stores in Qatar.
By critically analyzing the production operations of Carrefour Qatar, it has been found that
all stores of the Carrefour group compete with each other for the same food and non-food
products. To accomplish all requirements of their customers, Carrefour organization has
decided to implement technological solutions such as the deployment of an ERP system in
order to identify and track key consumption requirements and facilitate efficient business

operations. With the use of ERP software, the Carrefour staff can send notifications to
suppliers regarding the delivery of required raw materials. The suppliers are shipping the
ordered products directly to the production unit and warehouse of the company. Moreover,
the organization has used EDI (Electronic Data Interchange technology) to enhance business
communication with its suppliers.
Figure-1 inventory management in Carrefour (lleonliao, 2011)
The following presented order management model has been used by the Carrefour Qatar
organization for order management (Carrefour, 2017):
Figure-2 order management model (Carrefour, 2017)
It has been found that Carrefour Qatar is currently using an ERP system and 3PLs system for
improving the efficiency and effectiveness of its overall business processes. There is no doubt