Super U Supply Chain Management

which activities are managed is significant for a company's success. Moreover, the supply chain management is crucial within a firm's processes since it incorporates activities in which intermediate goods and final products are given to consumers through a distribution system. It is important to analyse it and take into consideration that this subject matter has a great impact within business procedures.

The main objective of our project is to study System U North West's supply chain management. This analysis could be made because of an interview with the Product Manager, Mr. Ledu. Also, it is intended to use the concepts and knowledge learned in Operations Management and apply them into real life. It is significant to note that we decided to choose this company since it is a major one in France. Moreover, its market chain (Marchй U, Super U and Hyper U) is well recognized within the major French cities. The importance of our research will permit the reader to understand different elements that are crucial part of the supply chain of this business. In addition to this, the project is going to be divided in the following sections: general information, purchasing, logistic process, information system, barriers and conclusion.

GENERAL INFORMATION

System U is a purchasing center for the market chain (Hyper U, Super U, Marchй U). The firm is an intermediary between suppliers and stores. Also, the company has an annual turnover of 13.79 billion of Ђ what is equivalent to 8% of market shares. It has to provide all products that are sold in more than 800 stores. Furthermore, the main objective of System U is to satisfy their consumers through price and high quality service-products. Moreover, this firm is composed by 4 regional purchasing centres: Systиme U Ouest, Systиme U Sud, Sytиme U Est and Systиme U Nord Ouest.

System U North West is the youngest of the 4 purchasing centers. It has to provide 120 stores in 19 departments. Also, it represents 1.1 billion Ђ meaning that it has around 9% of the total turnover of the firm. In spite of its weak turnover, this purchasing center is the more dynamic with an annual increase of 10% since 2000.

SYSTEM U NORTH WEST

PURCHASING

Choice of suppliers

Salesmen are in charge of choosing the suppliers. However, since System U is a famous and recognized brand, most of the suppliers get in touch with the sales department because they want to offer it their products. Also, it is important to note that entering and being part of the System U catalogue is significant because it serves as a great promotion.

Right source: Which are the selection criteria for choosing the suppliers?

- According to System U's needs (regarding the product areas and the store department) and to the consumer's demand. These needs are determined by:

o National polls

o Market research

o SWOT analysis in relation to the new products and the successful product areas: economic intelligence.

- They have to respect the time, quantity and quality conditions.

- No special norms are required (ISO for example), but precise criteria are taken into account for fresh products: delivery time and sell-by date.

- Price negotiation

Choice of products

There are different ways of purchasing. Moreover, it depends on the importance of the brand, if it is a national brand or a small supplier.

* With national brands: Some products are exclusive for System U stores because of negotiations and partnerships (U: dairy products).

* System U tries to focus on regional products and firms. For example, "Les Produits Malo", dairy products or Breton products in the West of France. Also, System U makes some offers at a regional level to complete or to widen a range of products. In addition to this, it has created an MDD, « Saveurs des saveurs » in System U stores.

Right price:

- Salesmen are also in charge of price negotiation. Price is important, but for System U product quality is more significant.

Right quality:

- Each supplier owns the goods transportation. They are in charge that the products maintain a high quality. Therefore, they are responsible that the fresh products arrive on time, at a good temperature and with a solid packaging. Also, they have to make sure that the sell date has not been exceeded and that expired products should be destroyed.