SUPPLY CHAIN

MANAGEMENT
LULU

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 Supply Chain Process Map

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 Supply Chain Analysis
 The main moto of reduced cost with quality products
 Lead time strategy is reduced but not at an expense of greater cost
 This is achieved by locating their warehouses near the port
 Their strengths in operations is that no part of Lulu’s supply chain
process is outsourced which makes it work in a centralised way with
more control over their supply chain
 Ordering system is automated, it leads to less out-of-stocks with higher
sales and lower inventory costs.
 Cycle-counting for instance, reduces their labour costs
 In Dubai itself the trucks at the retail warehouse carry out a hundred
trips daily with around 10,000 SKUs issued to Lulu stores daily
 From the analysis of their supply chain it can be said that their strategy
leans towards an efficient supply chain

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 Key Issues In Designing And Implementing
The Lu-Lu Supply Chain

The hypermarket sector in UAE has been notably overblown by the

strategies developed and operating of the LuLu hypermarket. The
LuLu hypermarket has been leading the market of the merchandising
chains in UAE.
1. Over 120 outlets worldwide.
2. Import around 275 containers.
3. Stocks in the country comprise over 100,000 SKU.
4. Largest warehouse in UAE 1mn.sq.ft.
Designing The Supply Chain :
1. Determine the supply chain network
2. Identify the levels of actions required.
The Optimization Of Supply Chain :
1. The main streams from suppliers to the end users should be
clearly decided (Cycle from the raw material sources to customer
markets).
2. Recognizing restrictions at vendors, plants and distribution
centers.
3. Obtaining full view of processes.
4. Plan procurement production in long periods.
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 Drivers for Lulu’s supply chain
 Facilities: The Lulu logistics caters to the demand of the middle east
diligently. It has 4 large warehouses
 Transportation: What makes Lulu logistics so effective is the speedy and
in time shipment. They own their own fleet of transportation which has
143 trucks
 Information: Lulu claim to be one of the early adopters of new
technologies thereby facilitating more convenience to their customers.
They are the “Customer Centre for Expertise” and have developed and
enhanced the Group strategic move of SAP ERP suite
 Sourcing: Lulu have multiple suppliers located globally, with their own
manufacturing and outsourcing facilities across East and Southeast Asia,
the Indian subcontinent and Africa
 Innovation: Supply chain innovation – WMS to have automated store
replenishment to Distribution centre using Mobile Computers and Pick to
Voice technologies

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 Major benefits, risks/cost of the practice

Risks
Supply Chain is a one of the key issues of Lulu’s success and important way to
follow goods in real-time. Despite the successful operation of Lulu supply chain,
there are several supply chain risks that Lulu may face due to the strategy of
enlargement and developing.
 Costs
 Food Safety
 Demands 
 Globalization 
 Market growth 
 Inventory 

Benefits
There are many different benefits of Lulu supply chain management.
 High Efficiency
 No Delays
 Business Profit
 Cost Decrease
 Cooperation

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 Trends in UAE/GCC that are
successfully using the practice
including best practices

Carrefour Supply Chain

 On-Shelf Availability (OSA) 

 Increase of product rotation 
 Information sharing 
 Shelf Ready Packaging (SRP) 
 Logistics costs vs logistics discounts
 Uses 3 PL when venturing into countries outside Europe.
 Move to “River and Rail” transport to reduce truck mileage
and safeguard the environment.
 Average inventory is 37 days
 Minimizing Pallet size for effective inventory management
 ERP Systems implemented by Carrefour backed by EDS
 Generix is the main Supply Chain Software provider.
Integration of 3PL and logistics capabilities of Carrefour and
suppliers.
 Warehouse Management System Provided by Generix

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 Carrefour and Lulu strength review
Carrefour

1. Global Presence and a popularity among the world.

2. World’s second largest and Europe’s retailers of groceries and

consumer goods in terms of revenue with over 9900 stores
worldwide
3. Multi Format Strategy:

Hypermarkets

Supermarkets

Express Stores

4. Own popular private- own brands

5. Pioneer in Hypermarket format

6.High Quality maintenance

Lulu

1. Wide Market Presence

2. One of the largest hypermarket chain in GULF

3. Multi Format Strategy:

Hypermarkets

Supermarkets & Dept. Stores

Express Stores

Shopping Mall

Food Processing

Private Label

4. Own popular private-label brands

6.High Quality maintenance

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