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Carrefour Inspection Plant

Product introduction： Carrefour Inspection Plant一、Introduction to Carrefour GroupFounded in 1959, Carrefour Group is the pioneer of hypermarket business, the largest retailer in Europe and the second largest international retail chain group in the world. We currently have over 11000 operating retail units, with a business scope covering 30 countries and regions around the world. The group leads the market with three main business formats: large supermarkets, supermarkets, and discount stores. In addition, Carrefour has also developed convenience stores and membership based mass merchandisers in some countries. 二、The golden law of Carrefour's operationCarrefour's success lies in fine and scientific management, mainly in six aspects: scientific site selection, strong commodity management organization, strong computer support function, simple organizational structure, business philosophy and efficient on-site management, complete corporate culture and strong sense of loss prevention.（一）、Scientific site selection1. Drive at an intersection. Carrefour's first store (meaning crossroads in French) was opened in 1963 at the crossroads of a small town in the south of Paris. It was so popular that everyone said they went to the crossroads and forgot the store name. Crossroads have become the first criterion for Carrefour's site selection.2. 3-5 kilometer radius of commercial district. This is the standard of Carrefour's site selection in the West. The general standard in China is an 8-kilometer bus ride, with no more than 20 minutes of psychological endurance.3. External companies conduct market surveys. Generally, two companies need to be selected separately for sales calculation, as they are independent companies outside the group.4. Flexibly adapt to local characteristics. Carrefour stores can be opened in the basement or four or five floors, but the best ones are the first and second floors on the ground, the first floor underground and the first floor above the ground. Carrefour usually occupies two floors, not three.（二）、Strong commodity management organization1. Procurement of goods globally. When a commodity enters Carrefour, the manufacturer must first negotiate with the headquarters to obtain approval, and each branch will place orders through the system without entering the system and settlement. Carrefour has an international commodity department, which is responsible for finding resources around the world and introducing them to the purchasing departments of Carrefour stores in various countries. The purchasing departments place orders with them. Carrefour is usually a commodity for global sales.The quality requirements of Carrefour for global suppliers are:Manufacturers or exporting companies with export rightsCompetitively pricedGood quality assurance (not brand)Mass production and supply capacityHave a willingness to learn new knowledge2. Establish a strong commodity management organization. Commodities are the center of store operation, and Carrefour attaches great importance to commodity management. The company has established a Director of Commodity Department to manage 5 commodity departments. Each commodity department, including fast-moving consumer goods, fresh food, daily necessities, household appliances, and textiles, has a director who manages seven functional departments, namely Sales Development Department, National Negotiation Department, Business Development Department, Price Department, Brand Department, Development Department, and Training Department.（三）、Powerful computer support featuresThe biggest gap between Chinese and foreign retail enterprises is system management, mainly manifested in the completeness of information systems and the way in which on-site management is guided. The on-site management is mainly based on computers, with people rotating around them.1. Computer functions. Carrefour computer plays 11 major functions, namely order management, automatic replenishment, receipt, return to manufacturer, price change, warehouse transfer between stores, warehouse transfer between departments, inventory adjustment, inventory checking, inquiry and report.2. Query and reporting functions. Utilizing computer query and reporting functions for corresponding analysis can greatly help improve performance.(1) Sales query (real-time): sales volume, sales volume (thus calculating the average price), and number of customers.(2) Product flow report: A report (single item record) of a product from birth to death, indicating the specific direction of these products. It is a tool for finding the cause of wear and tear.(3) Automatic replenishment report: Provide suggested orders, supplier code, order quantity, purchase price, selling price, gross profit margin, number of complimentary items, number of days ordered, current inventory, quantity of goods in transit, average monthly sales per day, current monthly sales volume, and suggested purchase quantity.(4) Promotion analysis report: Promoted products, prices, daily sales volume, sales volume, and average sales volume for the first four weeks.(5) Maximum sales analysis report (how to manage 20% Class A products): single item, price, ranking, percentage of the first four weeks in the entire store (the top 500 products account for less than 50-52% of the store's revenue, and there are issues with the variety).(6) Daily price change report: product, sales volume, old price, new price, lost money on price reduction, promotion name, and time. （四）、A concise organizational structureThere are three things to do before opening a store: location selection, location selection, and location selection; After opening a store, there are three things to do: establish an organization, establish a business philosophy, and conduct on-site management.1. Establish a concise organization. The store manager of Carrefour is responsible for the management of the store. If the store manager has a store manager, he will designate a director to be responsible for it. In addition, there is a duty manager (director or service department head).2. Establish Carrefour's unique business philosophy. Carrefour's business philosophy has five items: one time purchase, ultra-low price, free parking, self-service and fresh quality. Having these 5 items is a supermarket, and if you want to succeed, make these 5 items smaller. Not every product has a super low price, some have zero gross profit, while others can reach up to 15%. Supermarkets are not department stores or five-star hotels, but they must provide self-service conditions to facilitate customers to find products and prices without speaking up. Promotional products have at least two price tags. If 60% of customers or employees ask about the product and 40% ask about the price, it indicates that there is an issue with the product listing. There are no waiters in the supermarket, only tallymans.3. On site management. The on-site management of Carrefour stores is mainly manifested in patrol management.(1) Patrol management. Using a checklist for control can be divided into two standards: good, poor, and need for improvement. The specific items include: whether the high priced product store is locked, whether it is unpacked, whether the store is out of stock, who is good at the warehouse board, whether the products without barcodes are placed in the processing area, whether the lighting is wasted, and whether the hygiene and safety are not.(2) The manager of the commodity department must do daily: detailed inspection of shelves; The barcode matches the price; Whether the product is out of stock; Check the system report; Order promotional products separately; Develop promotions and orders based on monthly reports; Check the price tags and instructions; According to the guidance of the headquarters computer, change the display surface and increase the display surface with high sales. No more than 3 replenishment times for 100 varieties; Check safety and cleanliness.(3) Detailed inspection: cleaning, out of stock and ordering, important products, promotional areas, display standards, scanning testing, safety, etc. （五）、Corporate culture of Carrefour1. Carrefour's corporate culture expression. Our mission: All our efforts are to satisfy customers. Our retail activity is to meet the diverse needs of customers by selecting products and quality, providing the best price.2. Four major policies of Carrefour. In 1979, Carrefour summarized four major policies:Asset Policy Human Resources Policy Commodity Policy Financial PolicyBusiness Philosophy Organizational Category BudgetPay attention to customer training quality investmentPrice cost of corporate image promotionProfessional Skills Salary Layout Design ManagementTurnover and market share management procurement proceduresCommunication process between stores（六）、Strong awareness of loss prevention1. Daily loss prevention (security) team.(1) Three meter principle: Every employee greets customers within three meters of you. Non thieves will consider it polite, while thieves will worry and give up stealing.(2) Back warehouse management: No unboxing or substitute boxes are allowed, otherwise the financial code is invalid; Above the average price of goods, high unit price goods are locked and witnessed by security personnel.(3) Barcode management: Barcode swapping is an important cause of loss. It is dangerous for suppliers to purchase barcodes at the same time.(4) Cash management: Allow short and long amounts up to 40 yuan per month, and free shipping for long amounts exceeding short payments. Every time I check the bottom of the box and the bottom of the pipe, I miss scanning for more than 1000 yuan per day, and there is still something that hasn't been checked; The whole box needs to be opened.(5) Magnetic code principle: Textile, shoes, CD/VCD, cigarettes, and alcohol are all labeled, with a cost of 2-25000 yuan per mall.(6) Principle of bag control: adopt a bag storage system. Provide anti-theft bags, ladies are welcome.2. Cycle counting/large inventory points. Make reports on non current items (such as incorrect or lost barcodes), negative inventory reports (investigate thoroughly to find the cause), and implement free gift control (separately controlled).3. Audit system. Regularly verify the main links of the daily operation of the mall. Report to the CEO instead of the store manager. To maintain the operational standards of the mall and provide on-site training guidance. In fact, the biggest loss is that the mall system has not been implemented. Therefore, Carrefour registers the empty boxes every day and enters the system as the loss of the day; The bottles overturned by customers every day enter the system as daily losses; Fresh food has a loss of 1.5-2%, which enters the system as the daily loss. 三、Documents required for Carrefour system audit1. Work card or attendance record (past 12 months)2. Payroll Table (Last 12 Months)3. Personnel roster and personal files4. Labor contract5. Social insurance receipts, roster, and qualification documents, etc6. Business License7. Fire inspection report or qualification certificate document8. Records of fire drills, emergency evacuation plans, and work-related injury records, etc9. Environmental proof documents10. Factory regulations or employee manuals11. Government documents regarding local minimum wage regulations12. Equipment safety license (such as elevator use license, kitchen hygiene license, etc.)13. Special workers on duty (such as elevator workers, electricians, kitchen workers' hygiene permits, etc.)14. Approval from the local labor bureau on extending overtime15. Medical examination and labor bureau registration records for underage workers16. Factory floor plan17. Other documents (depending on the audit situation) 四、 Carrefour Factory Self assessment Questionnaire1、What is the lowest salary paid in the factory? For which position? 2、According to your best knowledge what is the legal minimum wage applicable in your country,region or district? 3、Are wage slips provided to all workers when they receive their month salary? 4、Has every employee from the factory signed a formal working contract? 5、Is paid maternity leave provided to pregnant women? 6、Are workers covered with medical insurance or any other benefits? 7、What is the normal working hours applicable in the factory? 8、How many hours of overtime workers usually do every day?(during low and during high season). 9、Is there any extra bonus paid for the overtime?Give details. 10、Do workers have at least one day of rest per week? 11、How many days of annual leave workers can enjoy? Is this annual leave paid? 12、What is the age of the youngest worker employed in the factory? 13、According to your best knowledge what is the legal minimum age? 14、How do you check the age of workers newly employed in the factory? 15、What is your policy concerning children or young workers? 16、Are any penalties deducted from the workers salaries in case of poor behavior,low productivity,quality problems? 17、Do workers have to give a deposit when they are employed(for equipment,uniforms provided…)？ 18、Do your keep original copies of work permit,ID papers,cards or professional certificates for the workers? 19、Do you feel your factory complies with Carrefour Suppliers Social Charter? 20、Do you feel your factory complies with the mational or local Labor Code? 21、Is the factory regularly audited(social audits) by customers or by local labor bureau ? (If yes give details). 五、Carrefour CAP Improvement Action RequestCarrefour sign Factory nameFactory location RepresentativePosition Supplier nameProducts Principla namePrincipal location Audit companyAudit date-s Type of auditCritical violation-s …No…YES sections: CORRECTIVE ACTION PLAN This Corrective Action Plan summarizes the critical violations(rated D in the completed&Audit Questionnaire)and non-conformities(rated C).These findings are valid for the site/date-s covered by the audit and are subject to the limited number of interviews and documentary checks imposed by time constraints,as well as the accuracy of data and information provided by the factory. This Corrective Action Plan is the basis for the audit closing meeting with the factory management.It should be issued in the local language,signed by the factory management representative and the lead auditor and a copy given to the factory representative.If the factory management cannot make an immediate commitment to a corrective action and/or target date,the reasons invoked should be indicated by the auditor under“Comments of factory representative”.The duly signed Corrective Action Plan in the local language as well as the typed, English translation have to be sent to the principal together with the other reporting documents. The principal who ordered this audit may reconsider certain reported conclusions and corrective actions and pursue their implementation directly with the factory, as appropriate. The principal can return the Corrective Action Plan with his confirmation/comments as appropriate. Reliable and sustainable implementation of corrective actions are crucial for the continual improvements. SECTION TITLE/NOCRITICAL VIOLATION And/or NON-CONFORMITYD CRECOMMENDED CORRECTIVE ACTIONTARGET DATES RESPONSIBLECOMMENTS OF FACTORY MANAGEMENTCOMMENTS OF PRINCIPALAUDITOR NAME:FACTORY REPRESENTATIVE NAMEPRINCIPAL REPRESENTATIVE SIGNATURESIGNATURESIGNATURE DATE:DATE

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Certification application

Carrefour Inspection Plant

一、Introduction to Carrefour Group

Founded in 1959, Carrefour Group is the pioneer of hypermarket business, the largest retailer in Europe and the second largest international retail chain group in the world. We currently have over 11000 operating retail units, with a business scope covering 30 countries and regions around the world. The group leads the market with three main business formats: large supermarkets, supermarkets, and discount stores. In addition, Carrefour has also developed convenience stores and membership based mass merchandisers in some countries.

二、The golden law of Carrefour's operation

Carrefour's success lies in fine and scientific management, mainly in six aspects: scientific site selection, strong commodity management organization, strong computer support function, simple organizational structure, business philosophy and efficient on-site management, complete corporate culture and strong sense of loss prevention.

（一）、Scientific site selection

1. Drive at an intersection. Carrefour's first store (meaning crossroads in French) was opened in 1963 at the crossroads of a small town in the south of Paris. It was so popular that everyone said they went to the crossroads and forgot the store name. Crossroads have become the first criterion for Carrefour's site selection.

2. 3-5 kilometer radius of commercial district. This is the standard of Carrefour's site selection in the West. The general standard in China is an 8-kilometer bus ride, with no more than 20 minutes of psychological endurance.

3. External companies conduct market surveys. Generally, two companies need to be selected separately for sales calculation, as they are independent companies outside the group.

4. Flexibly adapt to local characteristics. Carrefour stores can be opened in the basement or four or five floors, but the best ones are the first and second floors on the ground, the first floor underground and the first floor above the ground. Carrefour usually occupies two floors, not three.

（二）、Strong commodity management organization

1. Procurement of goods globally. When a commodity enters Carrefour, the manufacturer must first negotiate with the headquarters to obtain approval, and each branch will place orders through the system without entering the system and settlement. Carrefour has an international commodity department, which is responsible for finding resources around the world and introducing them to the purchasing departments of Carrefour stores in various countries. The purchasing departments place orders with them. Carrefour is usually a commodity for global sales.

The quality requirements of Carrefour for global suppliers are:

Manufacturers or exporting companies with export rights

Competitively priced

Good quality assurance (not brand)

Mass production and supply capacity

Have a willingness to learn new knowledge

2. Establish a strong commodity management organization. Commodities are the center of store operation, and Carrefour attaches great importance to commodity management. The company has established a Director of Commodity Department to manage 5 commodity departments. Each commodity department, including fast-moving consumer goods, fresh food, daily necessities, household appliances, and textiles, has a director who manages seven functional departments, namely Sales Development Department, National Negotiation Department, Business Development Department, Price Department, Brand Department, Development Department, and Training Department.

（三）、Powerful computer support features

The biggest gap between Chinese and foreign retail enterprises is system management, mainly manifested in the completeness of information systems and the way in which on-site management is guided. The on-site management is mainly based on computers, with people rotating around them.

1. Computer functions. Carrefour computer plays 11 major functions, namely order management, automatic replenishment, receipt, return to manufacturer, price change, warehouse transfer between stores, warehouse transfer between departments, inventory adjustment, inventory checking, inquiry and report.

2. Query and reporting functions. Utilizing computer query and reporting functions for corresponding analysis can greatly help improve performance.

(1) Sales query (real-time): sales volume, sales volume (thus calculating the average price), and number of customers.

(2) Product flow report: A report (single item record) of a product from birth to death, indicating the specific direction of these products. It is a tool for finding the cause of wear and tear.

(3) Automatic replenishment report: Provide suggested orders, supplier code, order quantity, purchase price, selling price, gross profit margin, number of complimentary items, number of days ordered, current inventory, quantity of goods in transit, average monthly sales per day, current monthly sales volume, and suggested purchase quantity.

(4) Promotion analysis report: Promoted products, prices, daily sales volume, sales volume, and average sales volume for the first four weeks.

(5) Maximum sales analysis report (how to manage 20% Class A products): single item, price, ranking, percentage of the first four weeks in the entire store (the top 500 products account for less than 50-52% of the store's revenue, and there are issues with the variety).

(6) Daily price change report: product, sales volume, old price, new price, lost money on price reduction, promotion name, and time.

（四）、A concise organizational structure

There are three things to do before opening a store: location selection, location selection, and location selection; After opening a store, there are three things to do: establish an organization, establish a business philosophy, and conduct on-site management.

1. Establish a concise organization. The store manager of Carrefour is responsible for the management of the store. If the store manager has a store manager, he will designate a director to be responsible for it. In addition, there is a duty manager (director or service department head).

2. Establish Carrefour's unique business philosophy. Carrefour's business philosophy has five items: one time purchase, ultra-low price, free parking, self-service and fresh quality. Having these 5 items is a supermarket, and if you want to succeed, make these 5 items smaller. Not every product has a super low price, some have zero gross profit, while others can reach up to 15%. Supermarkets are not department stores or five-star hotels, but they must provide self-service conditions to facilitate customers to find products and prices without speaking up. Promotional products have at least two price tags. If 60% of customers or employees ask about the product and 40% ask about the price, it indicates that there is an issue with the product listing. There are no waiters in the supermarket, only tallymans.

3. On site management. The on-site management of Carrefour stores is mainly manifested in patrol management.

(1) Patrol management. Using a checklist for control can be divided into two standards: good, poor, and need for improvement. The specific items include: whether the high priced product store is locked, whether it is unpacked, whether the store is out of stock, who is good at the warehouse board, whether the products without barcodes are placed in the processing area, whether the lighting is wasted, and whether the hygiene and safety are not.

(2) The manager of the commodity department must do daily: detailed inspection of shelves; The barcode matches the price; Whether the product is out of stock; Check the system report; Order promotional products separately; Develop promotions and orders based on monthly reports; Check the price tags and instructions; According to the guidance of the headquarters computer, change the display surface and increase the display surface with high sales. No more than 3 replenishment times for 100 varieties; Check safety and cleanliness.

(3) Detailed inspection: cleaning, out of stock and ordering, important products, promotional areas, display standards, scanning testing, safety, etc.

（五）、Corporate culture of Carrefour

1. Carrefour's corporate culture expression. Our mission: All our efforts are to satisfy customers. Our retail activity is to meet the diverse needs of customers by selecting products and quality, providing the best price.

2. Four major policies of Carrefour. In 1979, Carrefour summarized four major policies:

Asset Policy Human Resources Policy Commodity Policy Financial Policy

Business Philosophy Organizational Category Budget

Pay attention to customer training quality investment

Price cost of corporate image promotion

Professional Skills Salary Layout Design Management

Turnover and market share management procurement procedures

Communication process between stores

（六）、Strong awareness of loss prevention

1. Daily loss prevention (security) team.

(1) Three meter principle: Every employee greets customers within three meters of you. Non thieves will consider it polite, while thieves will worry and give up stealing.

(2) Back warehouse management: No unboxing or substitute boxes are allowed, otherwise the financial code is invalid; Above the average price of goods, high unit price goods are locked and witnessed by security personnel.

(3) Barcode management: Barcode swapping is an important cause of loss. It is dangerous for suppliers to purchase barcodes at the same time.

(4) Cash management: Allow short and long amounts up to 40 yuan per month, and free shipping for long amounts exceeding short payments. Every time I check the bottom of the box and the bottom of the pipe, I miss scanning for more than 1000 yuan per day, and there is still something that hasn't been checked; The whole box needs to be opened.

(5) Magnetic code principle: Textile, shoes, CD/VCD, cigarettes, and alcohol are all labeled, with a cost of 2-25000 yuan per mall.

(6) Principle of bag control: adopt a bag storage system. Provide anti-theft bags, ladies are welcome.

2. Cycle counting/large inventory points. Make reports on non current items (such as incorrect or lost barcodes), negative inventory reports (investigate thoroughly to find the cause), and implement free gift control (separately controlled).

3. Audit system. Regularly verify the main links of the daily operation of the mall. Report to the CEO instead of the store manager. To maintain the operational standards of the mall and provide on-site training guidance. In fact, the biggest loss is that the mall system has not been implemented. Therefore, Carrefour registers the empty boxes every day and enters the system as the loss of the day; The bottles overturned by customers every day enter the system as daily losses; Fresh food has a loss of 1.5-2%, which enters the system as the daily loss.

三、Documents required for Carrefour system audit

1. Work card or attendance record (past 12 months)

2. Payroll Table (Last 12 Months)

3. Personnel roster and personal files

4. Labor contract

5. Social insurance receipts, roster, and qualification documents, etc

6. Business License

7. Fire inspection report or qualification certificate document

8. Records of fire drills, emergency evacuation plans, and work-related injury records, etc

9. Environmental proof documents

10. Factory regulations or employee manuals

11. Government documents regarding local minimum wage regulations

12. Equipment safety license (such as elevator use license, kitchen hygiene license, etc.)

13. Special workers on duty (such as elevator workers, electricians, kitchen workers' hygiene permits, etc.)

14. Approval from the local labor bureau on extending overtime

15. Medical examination and labor bureau registration records for underage workers

16. Factory floor plan

17. Other documents (depending on the audit situation)

四、 Carrefour Factory Self assessment Questionnaire

1、What is the lowest salary paid in the factory? For which position?

2、According to your best knowledge what is the legal minimum wage applicable in your country,region or district?

3、Are wage slips provided to all workers when they receive their month salary?

4、Has every employee from the factory signed a formal working contract?

5、Is paid maternity leave provided to pregnant women?

6、Are workers covered with medical insurance or any other benefits?

7、What is the normal working hours applicable in the factory?

8、How many hours of overtime workers usually do every day?(during low and during high season).

9、Is there any extra bonus paid for the overtime?Give details.

10、Do workers have at least one day of rest per week?

11、How many days of annual leave workers can enjoy? Is this annual leave paid?

12、What is the age of the youngest worker employed in the factory?

13、According to your best knowledge what is the legal minimum age?

14、How do you check the age of workers newly employed in the factory?

15、What is your policy concerning children or young workers?

16、Are any penalties deducted from the workers salaries in case of poor behavior,low productivity,quality problems?

17、Do workers have to give a deposit when they are employed(for equipment,uniforms provided…)？

18、Do your keep original copies of work permit,ID papers,cards or professional certificates for the workers?

19、Do you feel your factory complies with Carrefour Suppliers Social Charter?

20、Do you feel your factory complies with the mational or local Labor Code?

21、Is the factory regularly audited(social audits) by customers or by local labor bureau ? (If yes give details).

五、Carrefour CAP Improvement Action Request

Carrefour sign

Factory nameFactory location

RepresentativePosition

Supplier nameProducts

Principla namePrincipal location

Audit companyAudit date-s

Type of auditCritical violation-s …No…YES sections:

CORRECTIVE ACTION PLAN

This Corrective Action Plan summarizes the critical violations(rated D in the completed&Audit Questionnaire)and non-conformities(rated C).These findings are valid for the site/date-s covered by the audit and are subject to the limited number of interviews and documentary checks imposed by time constraints,as well as the accuracy of data and information provided by the factory.

This Corrective Action Plan is the basis for the audit closing meeting with the factory management.It should be issued in the local language,signed by the factory management representative and the lead auditor and a copy given to the factory representative.If the factory management cannot make an immediate commitment to a corrective action and/or target date,the reasons invoked should be indicated by the auditor under“Comments of factory representative”.The duly signed Corrective Action Plan in the local language as well as the typed, English translation have to be sent to the principal together with the other reporting documents.

The principal who ordered this audit may reconsider certain reported conclusions and corrective actions and pursue their implementation directly with the factory, as appropriate. The principal can return the Corrective Action Plan with his confirmation/comments as appropriate. Reliable and sustainable implementation of corrective actions are crucial for the continual improvements.

SECTION

TITLE/NOCRITICAL VIOLATION

And/or

NON-CONFORMITYD

CRECOMMENDED

CORRECTIVE ACTIONTARGET DATES

RESPONSIBLECOMMENTS OF

FACTORY

MANAGEMENTCOMMENTS OF

PRINCIPAL

AUDITOR NAME:FACTORY

REPRESENTATIVE NAMEPRINCIPAL

REPRESENTATIVE

SIGNATURESIGNATURESIGNATURE

DATE:DATE

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