Carrefour in talks with JDA Software for cash-&-carry biz

Written by Mona Mehta | Mumbai | Updated: Sep 17 2009, 05:56am hrs
Multi-brand retailer Carrefour, which has 15,000 stores in 33 countries across the world, is planning to enter into licence transaction with JDA Software to optimise inventory, space and supply chain management for its upcoming cash-and-carry retail format in India. Globally, Carrefour is already utilising the same with JDA Software, Vineet Singhal, national sales director, JDA Software, told FE.

According to Singhal, "The talks are currently on between the companies. The new move comes at a time when Carrefour is planning to open its first cash-and-carry outlet in Delhi."

Amid the revival of growth in the Rs 40,000-crore Indian organised retail sector during the first and second quarters of 2009-10, retailers have been evaluating plans to adopt cost-effective measures be it in IT space, people, inventory and supply chain management and earn quick returns on investment.

Interestingly, Future Knowledge Services, IT arm of Future Group, has recently started implementation of optimisation solutions in space and inventory across all its retail formats, which include Big Bazaar, Pantaloon, Central, among others in India. Meanwhile, Future Group is currently carrying out final tests for rolling out space optimization, Ushir Bhatt, head, Future Knowledge Services, said. Prior to the move, Future Group had entered into licence transaction with JDA Software in February 2008.

According to BS Nagesh, vice-chairman, Shoppers Stop, We are using JDA Software in managing costs across all Shoppers Stop retail formats. We are planning to upgrade the software across various retailing formats in a phased manner, as we feel that adoption of optimised solutions instead of the core transaction system helps retailers get return on investments (ROI) in three to six months." Thus, investing in the core transaction system does not really help retailers recover ROI at a faster pace which is the need of the hour for the retail sector post revival, Singhal said.