Presented at the National School of Business and Management

of Dakhla

Internship defense of S10 Spring season course .

Branch : IC

Under the topic of :

Optimization of the supply and storage policy in large-

scale distribution companies .

(Marjane Holding as a case study.)

BY :
Abdelhamid MESNAOUI

Presented on : 06/06/2023 before the Jury :

Pr(e) Houssein SOUSSI ENCG– Dakhla President
Pr(e) ENCG– Dakhla Reporter
Pr(e) ENCG– Dakhla academic supervisor
Mr /Mme Prenom Nom Raison-Sociale Professional supervisor
 ACKNOWLEDGEMENTS

Before I begin, I would like to thank several people who have contributed
to the realization of this work. First, I would like to thank all the
administrative staff of the National School of Commerce and Management of
Dakhla for their continuous contribution to our training.
A special thank you to my academic supervisor Pr. Houssein SOUSSI for the
time he gave me and for his patience and advice during the process of
realizing this report.
I would like to thank our dear judges for their time and contribution to the
evaluation of my work. I would like to thank both my professional
supervisors.
Mr. Driss Belkouhia head of merchandising department at MARJANE
HOLDING (Marrakech Massira Branche),Ms. Asmaa Zoual EM section
manager And Mr. Najib Midafi head of merchandise flow for giving me the
opportunity to
learn about the workspace of Marjane Massira Marrakech and help during
my internship within the organization.
I am extremely grateful to the staff members of my department, family and
friends
who helped me to succeed in this internship.

2
 ABSTRACT :
The retail sector is confronted with important logistic challenges to ensure
an efficient management of the supply and storage of products. The
objective of this memoir is to analyse the supply and storage policy of the
company Marjane Holding, a leading retail company in Morocco, and
suggest improvements to optimize their logistics costs. To achieve this
objective, we will conduct an analysis of the supply chain of Marjane by
identifying the different logistics flows and evaluating the associated costs.
We will also examine the inventory management methods used by the
company, highlighting the breakpoints in the supply chain and the
associated costs. Finally, we will propose solutions to improve the
company's supply and storage policy, taking into account the logistical
constraints and the company's objectives. This case study will provide
practical recommendations for the optimization of the supply and storage
policy of large retail companies.

KEY WORDS :
Supply Chain, Inventory Management, Storage, Merchandise ,Warehousing ,Optimization.

3
 RÉSUMÉ
Le secteur de la grande distribution est confronté à des enjeux logistiques
importants pour assurer une gestion efficace de l'approvisionnement et
du stockage des produits. L'objectif de ce mémoire est d'analyser la
politique d'approvisionnement et de stockage de l'entreprise Marjane
Holding, et de proposer des solutions pour optimiser les coû ts logistiques.
Pour atteindre cet objectif, nous allons procéder à une analyse de la chaîne
logistique de l'entreprise en identifiant les différents flux logistiques et en
évaluant les coû ts associés. Nous allons également examiner les méthodes
de gestion des stocks utilisées par l'entreprise Marjane Holding, en
mettant en évidence les points de rupture de la chaîne logistique et les
coû ts associés. Enfin, nous proposerons des solutions pour améliorer la
politique d'approvisionnement et de stockage de l'entreprise, en prenant
en compte les contraintes logistiques et les objectifs de l'entreprise. Cette
étude de cas permettra de fournir des recommandations pratiques pour
l'optimisation de la politique d'approvisionnement et de stockage des
sociétés de grandes distributions.

4
 Summary

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5
 List of illustrations and figures

Figure 1 .Generic value chain………………………………………………………...……………………………...…….18

Figure 2 .typical product flows in a warehouse………………………………………………………...………….26
Figure 3.Technical sheet of Marjane Holding. ………………………………………………………….………….33
Illustration 1 .Inside Marjane's distribution warehouse………………………………………….……………33
Figure 4. organizational chart of Marjane Massira store. ……………………………………………………39
Figure 5. The tasks of the merchandise controller. ………………………………………………..…………….44
Figure 6.the merchandise flows in the store. ………………………………………………..………..…………….47
Illustration 2.Yellow zone in the reception area…………………………………………………………………. 48
Illustration 3. Red zone in the reception area…………………………………………………….……………….48
Illustration 4.the yellow straps are the tags of the Racks in the warehouse ………...………………49
Illustration 5. A PDA ( Personal Digital Assistant ) ……………………………………………..……………….49

6
 List of tables

Table 1.The supply flows in Marjane's chain…………………………………………………………………..36

Table 2.The five big sections in Marjane store ………………………………….…………………………….37
Table 3 . The results after dashboard analysis for the breakage rate ………………………………51

Liste of acronymes
Abbreviation Full Text
CSCP Certified Supply Chain Professional
SCM Supply Chaine Management
RFID Radio Frequency Identification
GLA Gross leasable area
PGC Produit de Grande Consommation
PF Fresh products
EM Electro Ménager
ECR Efficient Consumer Response
CAR Computer Aided Replenishment
KPI Key performance indicators
POS Point of Sale
CRM Client Relation Manager
MR Merchandise Reception
DM Department Manager
PDA Personal Digital Assistant
FSE Free Service Employee

7
 General Introduction
In the retail industry, the logistics and supply chain management play a vital role in
ensuring that products are delivered to customers in a timely and efficient manner. This
report focuses on the logistics and supply chain management of a hypermarket which is a
large retail store that offers a wide range of products, including groceries, clothing,
electronics, and home appliances. The report will cover various aspects of logistics and
supply chain management, including procurement, inventory management, transportation,
and distribution.
Faced with the demands of the market, companies are confronted with the need to
question their processes and in particular their inventory management, in order to satisfy
their customers and the market’s needs. To do so, most companies have resorted to the
optimization of the existing flows within their structures, as much at the level of the
piloting system as at the level as well as in the management of supply and inventories.
We will try to answer these following questions :
1. One of the main questions to answer in the subject matter is how does inventory
management work in a retail company such as Marjane. Hypermarkets and retail
businesses deal with a vast range of products, which makes inventory management a
crucial aspect of their operations. The challenge is to ensure that products are available
when customers need them while minimizing overstocking, which can lead to high costs.
2. Another key question to address is what the new methods are optimize the distribution
processes. Hypermarkets and retail businesses rely on transportation and distribution
networks to move products from suppliers to stores and ultimately to customers. The
challenge is to ensure that products are delivered on time, efficiently, and cost-
effectively.
3. Finally, another question to consider is how to manage supplier relationships effectively.
Hypermarkets and retail businesses rely on their suppliers to provide them with high-
quality products at competitive prices. The challenge is to maintain good relationships
with suppliers while ensuring that products are delivered on time and to the required
specifications.

Plan:

8
To lay the foundation for understanding supply chain and inventory management in
hypermarkets, this report will begin by examining the supply and storage policies
implemented by retail companies. By exploring industry best practices, regulations, and
innovative approaches to storage management, we aim to highlight the importance of an
efficient and well-organized storage system as a fundamental element of successful supply
chain operations.
For a comprehensive understanding of supply chain and inventory management in
hypermarkets, this report will delve into relevant literature reviews. By reviewing
scholarly articles, industry publications and textbooks we aim to explore current theories,
trends, and best practices in supply chain and inventory management within the
hypermarket industry. This literature review will serve as a foundation to deepen our
knowledge and provide a comprehensive overview of the subject matter.
One of the key aspects of this report will be an in-depth analysis of Marjane Holding's
supply chain and stock management practices. By examining Marjane's approach to supply
chain optimization, demand forecasting, supplier management, and distribution network,
we aim to evaluate the effectiveness of their current strategies. This analysis will shed light
on the strengths and areas for improvement within Marjane's supply chain and stock
management processes.
Drawing upon my own internship experience in Marjane Holding, this report will provide
firsthand insights into the company's supply chain and inventory management practices.
As an intern, I had the opportunity to observe and contribute to various aspects of
Marjane's operations, including inventory control, stock replenishment, and coordination
with suppliers. By reflecting on my internship experience, I will provide an evaluation of
Marjane's supply chain and inventory management practices, highlighting strengths and
areas for improvement based on real-world observations.
By combining theoretical knowledge from literature reviews with practical insights gained
from analyzing Marjane Holding's supply chain and stock management, this report aims to
provide a comprehensive understanding of supply chain and inventory management in
hypermarkets. Furthermore, the evaluation and recommendations derived from my
internship experience will contribute to enhancing the efficiency and effectiveness of
supply chain and inventory management practices in the hypermarket industry, with a
specific focus on Marjane Holding .

9
PART 1 : CONCEPTUAL
FRAMEWORK /REVIEW
OF RELATED RESEARCH

10
 Chapter 1 - Supply chain management :

Introduction :

Supply Chain Management is a very lively field of research. Many economies want to see their
companies work together to develop competitive skills and conquer global markets. To facilitate
this collaboration, supply chain practitioners need a synthetic approach that facilitates the
implementation of supply chain management practices.
To do so, a literature review of the main references in the field of Supply Chain Management
was carried out to identify the management levers on which companies can rely on in order to
improve their supply chain management practices.
The Supply Chain is a network of companies that exchange flows upstream and downstream to
serve the same end customer . Supply chain practicing is a collaborative interaction between two
or more organizations in the same line of business. This interaction leads to the emergence of
new competitive skills that can generate better profitability and more adapted answers to the
customer's needs. Nowadays it has become a critical process in modern business operations that
involves the planning, execution, and monitoring of all activities involved in the creation and
delivery of goods and services to customers. The importance of supply chain management has
increased in recent years as companies have become more globalized and customers have
become more demanding.

Section 1. Identification of the five levers of management :

In order to formulate our hypothesis, we are based on APICS' and CSCP program which consists
of four modules designed and intended for Supply Chain practitioners. A synthesis developed by
members of the association of logisticians of Morocco who followed this training resulted in a
five-year modeling of management levers to have a comprehensive and independent
representation of the supply chain Management, these levers are defined as follows:

11
 Information Performance
Process
Technology measurement

Human
Organization
resources
From a practical point of view, considering these levers in the design of supply chain
coordination led to the success of several large-scale projects in Morocco .At this stage, it seems
important for us to specify that taking these levers into account assumes that the company
already has the necessary pre-requisites necessary to implement Supply Chain Management
practices. Among the pre-requisites that we consider important ,we cite the awareness of the role
of Supply Chain Management, confidence in the partners, a shared vision between the members
of the Supply Chain and their long-term commitment.

1.1. Processes:
The general standard defines a process as a set of interrelated or interactive activities that
transform inputs into output elements.
The implementation of Supply Chain Management requires the integration of all supply
chain processes from purchasing to manufacturing and distribution of products .Well-
defined and controlled processes are essential for better Supply Chain Management . We
can’t deny that logistics are essential for planning a framework that aims to create a
complete plan for the company's product and information flows , but Supply Chain
Management is based on this framework, and it aims to establish links and coordination
between the processes of other entities in the chain .

1.2. Information Technology:

The mutual sharing of information between members of the Supply Chain is required to
implement the Supply Chain philosophy, this sharing is particularly important for planning
and process monitoring. Technology and artificial intelligence have never been more
applied than now to improve supply chain performance. POS scanners allow companies to

12
capture the voice of the customer, EDI allows all levels of the supply chain to listen and
react to the behavior of the customer using flexible manufacturing, automated warehouses,
and fast logistic tools.
The use of information technology to share data between the customer and the supplier is
in fact the creation of a supply chain, this type of supply chain is information based rather
than inventory. Successful companies have one thing in common: the use of information
technology to improve customer responsiveness. The use of information systems has the
potential to convert supply chains into demand chains, the system can now respond to a
known demand without having to anticipate it through forecasts .

1.3.Performance Measurement :

The performance measurement system consists of collecting, measuring, and comparing a

measurement to a standard against a specific criterion .Performance measurement shapes
behavior; this is particularly the case for organizations where formal measurement
systems drive the business .It is natural for each participant in the supply chain to take
actions that optimize the performance measures to which they are assessed .
Many companies have failed in maximizing the potential of their supply chain metrics
because they have often failed to develop the performance measures and indicators
required to fully integrate their supply chain in order to increase efficiency and
effectiveness .

1.4. Organization:
Organization is the nature of the entity capable of interacting with the members of the
Supply Chain. The organizational compatibility between the companies in an alliance has a
very positive impact on the effectiveness of the relationship. It is generally accepted that
the main obstacle to implementing logistics is organizational.
In other words, a major obstacle to the development of this management area is the rigid
and entrenched organizational structure that plagues most companies . Companies that
focus on process management have recognized that they are best managed by
multidisciplinary teams. These teams will integrate specialists drawn from functional areas
that are now becoming centers of excellence, and will be led by "integrators" whose role
will be to focus the team's effort on the achievement of the objectives related to the
market .
1.5. Human Resources:
It seems clear that companies that have been able to design better supply chain
management are also based on the involvement of their human resources. The importance
of the company's culture and its compatibility throughout the supply chain cannot be
underestimated. The mesh of cultures and attitudes of individuals is time-consuming but
necessary for the network to operate as a chain. Information technology is made up of
13
hardware, software but also the people throughout the supply chain who capture, analyze
and execute on the basis of the information. Effective process management requires
multidisciplinary skills . Given the rapid changes in the market and in technology , a major
challenge for companies is to ensure that they have access to knowledge in terms of
product and process innovation potential .A challenge as critical as the first one is to find
human resources capable of exploiting this knowledge.

Section 2. Literature review "Supply Chain Management: A Logistics

Perspective. (2021) ":
Over the past decade, companies have begun to realize the need to integrate their
customers and suppliers into their strategies. The objective of this integration is to improve
the competitiveness of the organization. Therefore, the decompartmentalization of the
different departments has become a necessity. It is even recognized in the literature that
the literature that the supply chain must be considered as the central unit of the
competitive analysis. The supply chain has therefore become a subject of interest for
academics, consultants and managers of companies.
"Supply Chain Management: A Logistics Perspective." It is a well-known and widely used
textbook in the field of supply chain management. The book, authored by John J. Coyle, C.
John Langley Jr., Brian J. Gibson, and Robert A. Novack, in its 11th Edition (2021) provides a
comprehensive overview of supply chain management principles, concepts, and practices.
The book covers various topics related to supply chain management, including logistics,
inventory management, transportation, facility design, information technology, sourcing,
and more. It offers insights into the strategic and operational aspects of managing supply
chains and provides real-world examples and case studies to illustrate key concepts.
Specifically tailored to the retail industry, we can provide practical insights into successful
strategies and best practices implemented by retail companies. Analyzing these examples
will offer valuable lessons that can be applied to our research, helping us identify
optimization opportunities and potential strategies for improving retail supply chains.

The book is divided into 4 main parts , we will delve into the most important section of
each part to them into a more cohesive view of the topic.

2.1. Role of logistics in the supply chain :

The authors provide a detailed examination of the role of logistics in the supply chain. They
emphasize that logistics plays a crucial function in facilitating the efficient movement,
storage, and flow of goods and information throughout the supply chain network.
They also underscore the significance of logistics in achieving supply chain objectives such
as customer satisfaction, cost reduction, and operational efficiency. It highlights that

14
effective logistics management is vital for enhancing customer service levels, ensuring
timely deliveries, and minimizing lead times. By optimizing logistics activities, companies
can gain a competitive edge in the marketplace. They discuss transportation as a
fundamental aspect of logistics, encompassing the selection of transportation modes (such
as road, rail, air, or sea) and carriers. They also provided insights into optimizing
transportation routes, consolidating shipments, and implementing strategies to reduce
transportation costs and enhance delivery reliability .

Warehouse management and inventory control are other crucial aspects of logistics
covered in the book. It examines efficient warehouse design, layout, and operations to
maximize storage capacity, improve order fulfillment, and minimize handling costs. The
authors discuss inventory management techniques, such as just-in-time (JIT) or vendor-
managed inventory (VMI), to optimize inventory levels, reduce carrying costs, and
minimize stockouts.
Moreover, the book emphasizes the role of information technology in logistics. It explores
how technology, such as warehouse management systems (WMS), transportation
management systems (TMS), and electronic data interchange (EDI), enables real-time
visibility, accurate tracking, and efficient communication across the supply chain. The
authors highlight the importance of information sharing and collaboration among supply
chain partners to enhance logistics operations and overall supply chain performance.
The book also addresses emerging trends and challenges in logistics, such as the
integration of e-commerce and omni-channel distribution. It discusses the impact of e-
commerce on logistics processes, including order fulfillment, last-mile delivery, and reverse
logistics. The authors emphasize the need for agile and flexible logistics operations to adapt
to changing customer expectations and market dynamics.
2.2. Demand Management:
The authors emphasize the importance of effectively managing and forecasting demand to
ensure efficient operations and customer satisfaction.
The book explores various techniques and strategies for demand management, including
demand forecasting, demand planning, and demand shaping which highlights the
significance of accurate demand forecasting in aligning production, inventory, and logistics
activities to meet customer requirements.
The authors discuss different demand forecasting methods, such as time series analysis,
causal forecasting, and collaborative forecasting. They emphasize the use of historical data,
market trends, and customer insights to develop reliable forecasts. Additionally, the
integration of demand forecasting with sales and operations planning (S&OP) processes to
achieve a more holistic view of demand and improve supply chain coordination.
Demand planning, another aspect covered in the book, involves translating demand
forecasts into actionable plans. It entails making decisions on production volumes,
inventory levels, and resource allocation based on anticipated demand. The authors discuss
techniques for demand-driven material requirements planning (MRP), distribution

15
requirements planning (DRP), and capacity planning to align supply capabilities with
demand expectations.
Furthermore, the book addresses the concept of demand shaping, which involves
influencing customer demand through pricing strategies, promotions, and product
differentiation. It explores how companies can use pricing elasticity, market segmentation,
and promotional campaigns to stimulate demand, balance supply and demand, and
enhance overall profitability.
The authors emphasize the importance of collaboration and information sharing with
supply chain partners to improve demand management. They discuss the role of
technology and data analytics in demand sensing, demand shaping, and demand-driven
replenishment.
Demand management is very significance in supply chain optimization. It covers demand
forecasting, demand planning, and demand shaping techniques, highlighting the integration
of technology and collaboration with supply chain partners.

2.3. Distribution- Managing Fulfillment:

The section focuses on the pivotal role of distribution in achieving supply chain
optimization, particularly in terms of efficient and effective order fulfillment for customers.
The authors underscore the significance of adept distribution management in ensuring
punctual delivery, precise order processing, and overall customer satisfaction. They delve
into key elements of distribution management, including order processing, picking,
packing, and shipping.
The book emphasizes the importance of streamlined order processing to expedite
distribution operations. It delves into techniques such as order aggregation, batching, and
sequencing, which minimize processing time and enhance order accuracy. The authors
highlight the integration of advanced technologies, such as Order Management Systems
(OMS) and Enterprise Resource Planning (ERP) systems, to automate and streamline order
processing while improving end-to-end visibility across the distribution network.
Furthermore, the authors explore the intricacies of the picking process, encompassing the
systematic retrieval of items from inventory to fulfill customer orders. Various picking
methods, such as zone picking, batch picking, and wave picking, are examined to optimize
efficiency and reduce errors. The book underscores the role of technology integration, such
as barcode scanning and voice picking systems, in augmenting picking precision and
velocity.
The packing process, another vital component discussed, involves the careful packaging of
items for shipment. The book elucidates strategies for optimizing packing operations,
including right-sizing packaging, employing sustainable materials, and automating packing
procedures. The authors underscore the significance of efficient packing to minimize waste,
lower shipping costs, and ensure the secure transportation of goods.
Additionally, the authors address the shipping process, encompassing the selection of
optimal transportation modes and the coordination of delivery logistics. Strategies for
16
optimizing transportation, such as carrier selection, route optimization, and load
consolidation, are explored. The book emphasizes the integration of Transportation
Management Systems (TMS) and real-time tracking technologies to enhance visibility and
ensure reliable delivery performance.
Furthermore, the book acknowledges emerging trends in distribution management, such as
the prominence of e-commerce and omnichannel fulfillment. The associated challenges and
opportunities are discussed, including the need for accelerated order processing, flexible
fulfillment options, and seamless inventory management across diverse channels.
Overall, the section on "Distribution: Managing Fulfillment" offers a professional
exploration of optimizing the distribution process within the supply chain. Through its
coverage of order processing, picking, packing, and shipping, the book underscores the
integration of advanced technologies and industry best practices to enhance efficiency,
accuracy, and customer satisfaction. Researchers will find valuable insights and strategies
for advancing distribution management in the context of retail companies.

2.4. strategic challenges and change for supply chains:

The section "Strategic Challenges and Change for Supply Chains" delves into the intricacies
of managing supply chains in the face of evolving dynamics and the need for strategic
adaptation.
The authors emphasize that supply chains operate in a dynamic environment characterized
by rapid changes in technology, market trends, customer expectations, and competitive
forces. They highlight the strategic challenges that organizations face and discuss how
proactive management and strategic decision-making can enable supply chains to thrive in
such an environment.
One significant challenge explored in the book is globalization. With expanding markets
and interconnected economies, supply chains have become more complex and
geographically dispersed. The authors discuss strategies for managing global suppliers,
coordinating operations across borders, and ensuring compliance with international
regulations. They address the complexities of sourcing raw materials, navigating customs
procedures, and establishing efficient transportation networks to optimize global supply
chain performance.
The authors also delve into the impact of changing customer expectations on supply chains.
In an era of heightened customer demands, organizations must develop strategies to meet
evolving preferences for faster delivery, product customization, and seamless experiences.
The book explores concepts such as demand-driven supply chains and customer-centric
logistics, highlighting the importance of supply chain agility and flexibility in adapting to
changing customer needs.
The authors discuss the transformative potential of technologies such as artificial
intelligence, the Internet of Things (IoT), and blockchain in revolutionizing supply chain
17
management. They explore how these technologies can enhance visibility, optimize
inventory management, enable predictive analytics, and improve supply chain
collaboration. The book emphasizes the need for organizations to embrace technological
innovations and integrate them strategically into their supply chain operations.
Sustainability is a growing concern in supply chain management, and the book addresses
the associated strategic challenges. It explores sustainable sourcing practices, green
logistics initiatives, and the integration of circular economy principles. The authors
emphasize the importance of developing environmentally conscious supply chains that
minimize waste, reduce carbon emissions, and promote social responsibility.
Risk management is also a critical aspect discussed in the book. The authors highlight the
importance of identifying and mitigating risks that can disrupt supply chain operations,
such as natural disasters, geopolitical instability, supplier disruptions, and cybersecurity
threats. They explore strategies for developing resilient supply chains through proactive
risk assessment, contingency planning, and robust supply chain networks.
This section provides a detailed exploration of the multifaceted challenges faced by supply
chains in a dynamic business landscape. It offers insights into strategic considerations, such
as globalization, changing customer expectations, technological advancements,
sustainability, and risk management. By understanding and addressing these challenges,
organizations can adapt their supply chains strategically and drive positive change to stay
competitive and meet the evolving needs of customers and markets.

Section 3. Types of supply chain models:

The Book I mentioned before has provided a model which really caught my attention and
found interesting , a newly developed a generic value chain model visually represents all
activities with equal weight within the supply structure of a company or companies :

Figure 1.Generic value chain model

18
The generic value chain model visually represents all activities with equal weight.
However, value chain analysis emphasizes the real needs of the company. For example, a
company that assists after the sale, such as for copiers or air conditioners, has a larger
service activity set than a company that performs little follow-up action, such as FedEx or
UPS.
When using Porter’s value chain, you must identify whether you are trying to differentiate
or lower costs, prioritize the changes you identify during analysis, and consider how
changes will benefit the entire organization.
 
Porter’s Five Forces That Influence Competitive Advantage
Prior to writing on value chain models, Porter developed a unique competitive analysis tool
called Porter’s Five Forces. This tool takes a critical look at competitive market forces in an
effort to identify opportunities or risk —  it is similar to a SWOT (strengths, weaknesses,
opportunities, and threats) analysis. Porter’s tool analyzes changing conditions in order to
provide a structure for proactive improvement.
Below are the five forces:
1. Competitive rivalry within the industry
2. Threat of new market entrants
3. Bargaining power of customers
4. Bargaining power of suppliers
5. Threat of substitute products

The way supply chain management is implemented varies depending on the company. Each
business's SCM process is unique due to its specific objectives, limitations, and advantages.
A corporation can generally use one of six major models to direct its supply chain
management procedures.

19
 The continuous flow
Agile Model Fast Model
model 
one of the more This model is best for This model places an
established supply companies with emphasis on a
chain strategies, works unpredictable demand product's rapid
best for developed or consumer-ordered turnover due to its
sectors. The goods . This approach brief life cycle. A
continuous flow model places an emphasis on corporation uses the
assumes that a adaptability because a rapid chain model to
producer will business may have a try to take advantage
consistently produce particular requirement of a trend, produce
the same good and that at any given time and products quickly, and
customer demand will must be ready to make sure the product
be relatively stable. change course is completely sold
accordingly. before the trend ends.

Flexible approach Efficient Model Custom Model

Businesses that are Businesses that compete A corporation can always

touched by seasonality in sectors with extremely turn to a custom model if
do well using the flexible slim profit margins may one of the
approach. During the try to gain an edge by aforementioned models
busiest times of the year, optimizing their supply doesn't work for its
certain businesses may chain management requirements. For highly
have very high demand procedures. This entails specialized sectors with
requirements and very making the best use of demanding technical
low volume gear and equipment, as standards, like an
requirements. A flexible well as effectively automobile factory, this
supply chain managing inventories is frequently the case.
management model and processing orders.
ensures that ramping up
or shutting down
production is simple.

Example of SCM :
Understanding the importance of SCM to its business, Walgreens Boots Alliance Inc.
decided to transform its supply chain by investing in technology to streamline the entire
process. For several years the company has been investing and revamping its supply chain
management process. Walgreens was able to use big data to help improve its forecasting
capabilities and better manage the sales and inventory management processes.

20
This includes the 2019 addition of its first-ever Chief Supply Chain Officer, Colin Nelson. His
role is to boost customer satisfaction as the company increases its digital presence. Beyond
that, in 2021, it announced it would be offering free two-hour, same-day delivery for
24,000 products in its stores.

Chapter 2 –  Storage policy in retail companies :

Introduction:

Storage policy is a crucial aspect of retail companies as it governs how the goods and products are
stacked in stores or warehouses. The storage policy of a retail company defines the guidelines and
procedures for managing inventory, ensuring the availability of products for customers, and
maintaining the quality of the products. A well-planned storage policy ensures that the products are
stored in a way that maximizes their shelf life and minimizes the risk of damage or spoilage. It also
ensures that the products are easily accessible for the staff to quickly restock and retrieve products
for customers. Retail companies need to consider several factors while formulating their storage
policy, such as the nature of the products, their demand and supply, storage capacity, and
environmental factors such as temperature, humidity, and lighting.
A good storage policy can help retail companies optimize their inventory management, reduce waste,
and enhance customer satisfaction by ensuring that the products are always available, fresh, and in
good condition. It is, therefore, essential for retail companies to have a well-defined storage policy
that is regularly reviewed and updated to ensure optimal performance.

Section 1. Logistic performance as a main contributor to the

company's success:
1.1.Definition:
Logistics performance is the measure of the relationship between the service provided to the
customer and the resources consumed. Efficient logistics ensures customer satisfaction while
consuming fewer resources.
Logistics performance is about ensuring the delivery of the products of the right quality, in the
right quantity, at the right time, in the right place, while consuming fewer resources. This
means controlling the operational functions described between the supplier and the
distributor: production, transport, storage, exposition at the point of sale.
The progressive recognition of logistics allows for an increasing integration in the management
of the value offer. Thus, the quality of logistics services (level of service and delivery time)
allows for real differentiation from competitors and therefore the development of a

21
competitive advantage. This is particularly visible in the case of e-commerce but traditional
sectors are also concerned.

2.2. Why measure logistic performance ?

The logistics industry generates huge amounts of data every day from warehousing
processes, order transport, picking and packing, and more. That said, the companies that
benefit from logistics analytics solutions to improve their performance are the ones that
will succeed in the long run. For companies to achieve this kind of success, there is a set of
professional logistics measures that will not only ensure the smooth running of operational
processes but will help them optimize costs while maintaining quality service. If one wants
to extract more in-depth information from these metrics, they should be aggregated into a
logistics dashboard using a professional dashboard tool and take advantage of powerful
data visualizations.

In procurement, successful logistics is characterized by:

● A security of supply,
● Reliability of supplies,
● An optimized stock of raw materials and/or components.

In the production area, efficient logistics is characterized by:

● A reduced throughput time,
● A continuous and non-stop production process,
● An optimized safety stock of work in progress.

In distribution, efficient logistics is characterized by:

● Deliveries to customers on the expected dates,
● Deliveries without disputes.
● An optimized stock of finished products

The following is a complete list of the most important logistics KPIs and metrics:

● Shipment time: identify potential problems in your order fulfillment process.

● Order accuracy: monitor the degree of incidents.
● Order Picking Accuracy: how many orders are picked without error?
● Delivery time: track your average delivery time in detail.
● Pick and pack cycle time: track how long it takes to pick and pack your orders.
● Equipment utilization rate: Is your equipment sufficient for your staff?
● Transportation costs: analyze all costs from order placement to delivery.
● Warehousing costs: Optimize your warehouse expenses.

22
 ● Pick & pack costs : Control all costs related to your pick and pack process.
● Packaging material usage: Optimize your material usage.
● Number of shipments : Understand how many orders are being shipped.
● Inventory accuracy: Avoid problems due to inaccurate inventory
● Inventory Turnover: Track the number of times your entire inventory is sold
● Inventory-to-sales ratio: Identify potential overstock

Section 2. Review of related research ( Optimization of

warehouse configuration and allocation of products with a high
demand )

The presented research develops a model to optimize the configuration of a warehouse in order
to evaluate the space requirements and to find the allocation of products across the different
storage areas. This methodology was carried out with data from a major retailer in Taiwan,
evolving in an environment with dynamic demand, also provides solutions for outsourcing the
storage of a part of its merchandise. This literature review will focus first on the topics related to
the definition of the optimal size of a warehouse, in a second time on the policy of allocation of
the products through the zones of storage areas .

1.1.Size of the storage space:

The number of resources, including storage capacity, is a major factor in estimating the
investment costs of a warehouse(Rouwenhorst et al., 2000). Therefore, the choice of space, due
to its cost requires an optimal estimation of the factors influencing the space needed for
operations to function properly to avoid situations of disruption or under-utilization of capacity
(Mohsen et al, 2002).
The type of demand is then a crucial element to achieve a planning of the storage space in
adequacy with the latter. When the demand is static, it is necessary to determine a single space
that can satisfy the objectives set while minimizing costs. On the other hand, a dynamic demand
requires a capacity of space which can evolve through time while considering the possibility of
expansion or outsourcing (Cormieret al., 1992 ).
Finally, it is also important to note that the estimate of storage space is likely to vary depending
on whether the control of the inventory level has been decided by the warehouse or externally
(Gu et al., 2010).

- Optimal warehouse size :

Concerning the problems of sizing the storage capacity of a warehouse, we can first cite Cormier
et al. Using a derivative, the author was able to estimate the optimal size of a storage facility for
a single item, operating in an environment with constant demand. In solving this problem, the

23
method employed also allowed the evaluation of the allocation policy giving the best results.
Finally, the combination of these two objectives brings a decrease in construction and inventory
costs while avoiding a possible break in space capacity. space capacities. This is made possible
by the implementation of a constraint whose consideration forces to meet the whole demand. The
resolution of the scenario including several products could be reached thanks to a Lagrangian
multiplicative method executed using Newton's method.

Subsequently Huang et al, (2015) will address the optimal size problem incorporating.
A function related to the location of the facility to reduce transportation and operation costs. The
operation costs include the fixed costs related to the installation of the building and variable costs
that depend on the amount of storage space needed to meet service level objectives. To do this,
the authors will use integer linear programming with constraints that ensure that the entire
demand is served while choosing only one size option.

2.2.Assignment Policies :
If we were to popularize the definition of merchandise allocation strategy, we could refer to a method for
determining the location of products in the different storage areas of the warehouse (Van den Berg et al.,
1996). This allocation However, this allocation must lead to optimal results for a number of performance
measures (Kovács et al., 2011). The goal of this approach is to reduce the storage material costs as well as
improving space utilization (Gu et al., 2007). Indeed, the choice of the product placement method will
define the amount of storage space required and will in turn influence the level of inventory. (Lee et al.,
2005). It is therefore essential that the allocation of products first allows for the use of the minimum
amount of storage space possible, as well as for the reduction of the total displacement (Hsieh et al., 2005).

-The problem of product allocation :

Research into merchandise allocation policies dates back to the early days of warehouse
automation, which increasingly turned to computerized control systems for STD1 stacker cranes.
This technology, although expensive, has many advantages , such as lower labor costs, better
space utilization and better inventory control. To plan and configurate these systems, a study
comparing three allocation policies was conducted to determine which one is best in terms of
operational results.

The three policies are:

Random Sales-based Class-based

Assignment Assignment Assignment.

24
It is important to note that this research assumes that the size of all storage cells is identical, and
that each pallet contains only one product reference. However, it is shown that the turnover-
based assignment policy is the most efficient in terms of crane travel time. Regarding our study,
this text presents an added value which lies in the fact that this policy, under certain conditions
can provide a better trade-off between throughput and storage capacity in relation to size and
storage capacity in relation to the size and number of racks (Hausman et al., 1976).

-The problem of storage costs:

This type of problem was first studied by (Rosenblatt, 1984), who developed a procedure to
obtain the optimal configuration of a distribution center. The formulation of the problem takes
into account the following criteria:
(1) initial investment costs such as construction costs
(2) Storage costs
(3) the costs of choosing an allocation policy.

The twelve-step computerized procedure will simultaneously address the following issues,
namely the size of the internal configuration and the merchandise allocation strategy and the
problem of reducing the required storage space which is also addressed by Geraldes et al.
Geraldes et al, (2008). The author applies the model developed by Heragu et al, (2005), in order
to find the allocation of products as well as the size of the storage areas in order to minimize the
handling and storage costs. The application of the model on a real company's warehouse allowed
a decrease of about 40% of the storage space resources.

-Heragu's model :
The goal of the Heragu et al. heuristic (2005) is to define the size of each storage area in a
facility through the optimization of product assignment through these areas. The objective of this
assignment of products across zones is to minimizing the total costs of handling of storage. The
author in his research considers four types of flows presented as follows.

25
 Figure 2 .typical product flows in a warehouse

It is important to specify that in flow 3 the pallets of products are first stored as they are in the
Reserve area and will then be divided into smaller loads and sent to the sent to the Forward zone.
In our study we cannot take into account such a type of flow, because we do not have the
information about which is the average percentage of time that a product load spends in the
Reserve zone if the product is assigned to stream 3.
The minimization of total costs will come about through a binary variable choosing the
assignment of products, according to their handling and storage costs. The model also contains
several constraints to ensure that products can only be stored in only one type of flow. Other
constraints will ensure that the space capacities of each storage area are respected, that the
totality of the available space is allocated to them, and that each product is assigned to a storage
area. Our research, although inspired by the model developed by Heragu et al (2005), will differ
in several respects.

Conclusion :

Supply chain management and stock optimization have emerged as critical success
factors in the retail sector's quick evolution. Retailers must continually adapt to fulfill the
needs of their customers while staying ahead of the competition due to technological
improvements and the growth of e-commerce. There are many interesting changes in store

26
for the supply chain and stock optimization industries in retail. Cost savings and improved
efficiency are two key goals of supply chain and stock optimization in retail. This can be
done by putting automated processes in place and using data analytics to make wise
decisions. Retailers may prevent overstocking and stockouts by utilizing predictive
algorithms to forecast demand, ensuring that they always have the proper quantity of
inventory on hand.
Another goal of supply chain and stock optimization is to improve the customer
experience. By optimizing the supply chain, retailers can ensure that products are delivered
quickly and efficiently, providing customers with a seamless shopping experience. This can
be achieved through the use of technologies such as RFID, which allows for real-time
tracking of inventory, and machine learning algorithms that can optimize shipping routes
and delivery times. Walmart, Amazon, and H&M are some of the biggest names in the retail
industry, and they have all implemented innovative supply chain and stock optimization
strategies to improve their operations.

Walmart has made significant investments in automation and robotics to improve their
supply chain operations. They have implemented automated systems in their warehouses
and stores to improve the efficiency of their inventory management. For instance, they use
robots to scan shelves and alert employees when products need to be restocked. Walmart
also uses machine learning algorithms to optimize their delivery routes, reducing delivery
times and improving the customer experience. Additionally, they have implemented a
variety of technologies, such as blockchain and RFID, to improve inventory tracking and
reduce waste.

Amazon is another company that has been at the forefront of supply chain and stock
optimization in the retail industry. They have developed a highly efficient supply chain,
which is powered by advanced data analytics and machine learning algorithms. They use
predictive algorithms to forecast demand and optimize their inventory levels, ensuring that
they always have the right products in stock. Amazon has also developed an extensive
logistics network that includes their own delivery fleet and partnerships with other
logistics companies. By owning their logistics network, they have more control over the
delivery process and can ensure that products are delivered quickly and efficiently.

H&M is a global fashion retailer that has implemented fast fashion supply chains to quickly
respond to changing trends and customer demands. They have developed a highly agile
supply chain that allows them to move from concept to delivery in just a few weeks. This
has enabled them to reduce their lead times and quickly adapt to changes in the market.
H&M uses real-time data and predictive analytics to quickly adjust their production and
distribution processes to ensure that they always have the right products in stock. They
have also implemented RFID technology in their stores to improve inventory accuracy and
reduce out-of-stock.
27
Overall, Walmart, Amazon, and H&M are just a few examples of companies that are leading
the way in supply chain and stock optimization in the retail industry. By leveraging
advanced technologies and data analytics, they are able to improve their operations, reduce
costs, and enhance the customer experience. As technology continues to evolve, we can
expect to see even more innovation in the supply chain and stock optimization space,
which will drive further improvements in the retail industry.
The previous literature reviews that dove into the realms of inventory management and
supply chain management are paramount for research dedicated to optimizing the supply
chain. By immersing themselves in existing literature, researchers gain a comprehensive
understanding of current practices, allowing them to grasp the intricacies of inventory
management and the broader supply chain context. Additionally, such a review enables
researchers to identify the challenges that organizations face in effectively managing
inventory and streamlining supply chain operations. These challenges may range from
issues related to excessive inventory and stockouts to suboptimal order quantities and
inefficient distribution strategies.

Furthermore, these literature reviews brought to light emerging trends, technological

advancements, and innovative practices within the realm of inventory management and
supply chain optimization. These trends, which may encompass the adoption of
automation, analytics, and digital technologies, provide new avenues for enhancing supply
chain performance and achieving optimization objectives. By staying informed of these
emerging trends, researchers can incorporate the latest developments into their research,
ensuring its relevance and applicability.

28
 PART 2 :
PRACTICAL AND
EVALUATIVE
FRAMEWORK
(MARJANE HOLDING AS A
CASE STUDY)

29
Introduction:

In today's highly competitive business landscape, effective supply chain management and
inventory control are critical for organizations seeking to maintain a competitive edge.
Marjane, a prominent retail company, recognizes the significance of efficient supply chain
operations and stock management to ensure seamless customer experiences and
sustainable business growth. This section of the report focuses on analyzing Marjane's
supply chain and stock management practices, highlighting its approaches to inventory
management and the challenges it faces.
Marjane operates an extensive supply chain network that spans multiple locations and
involves various stakeholders, including suppliers, manufacturers, distribution centers, and
retail outlets. The company understands the importance of timely and accurate delivery of
goods to its stores to meet customer demands efficiently. By ensuring a well-optimized
supply chain, Marjane can minimize stockouts, reduce lead times, and improve overall
customer satisfaction. Effective inventory management is a crucial aspect of Marjane's
operations, as it directly impacts the company's financial performance and customer
experience.
As part of my internship experience at Marjane, I had the opportunity to gain firsthand
insights into the company's supply chain and stock management processes. Serving as a
merchandise receptionist and department managing assistant, I was able to observe and
contribute to various aspects of the supply chain, including receiving incoming goods,
coordinating with suppliers, and assisting in inventory control activities. This practical
exposure provided valuable knowledge and understanding of the challenges faced by
Marjane in its supply chain operations.
One of the critical objectives for any organization is to minimize costs associated with
supply chain operations and inventory management while maintaining service levels and
customer satisfaction. In this section, we will evaluate the costs involved in Marjane's
supply chain and inventory management processes. Furthermore, we will identify potential
challenges and propose strategic solutions to optimize supply chain costs, enhance
inventory control practices, and improve overall operational efficiency.
By thoroughly analyzing Marjane's supply chain and stock management practices, my
report aims to shed light on the company's strengths, areas for improvement, and potential
strategies for enhancing its supply chain performance. This assessment will provide
valuable insights for Marjane to refine its operations, ensure cost-effectiveness, and stay
ahead in an increasingly competitive marketplace.

Chapter 1 –Analysis of Marjane’s Supply Chain and

Stock Management :

30
Introduction :
Morocco has a thriving retail sector, with numerous local and international retailers operating
across the country. The sector has experienced significant growth over the years, driven by a
rising middle class, an increase in purchasing power, and changing consumer preferences. The
retail industry is highly diversified, with a wide range of products and services being offered,
including clothing, electronics, food and beverages, home appliances, and more.
Moreover, customers in Morocco have become increasingly price-sensitive, with many seeking
out discounts, promotions, and deals to save money. This trend has led retailers to adopt various
pricing strategies, such as offering loyalty programs, seasonal discounts, and limited-time offers,
to attract and retain customers. The retail industry in Morocco has undergone significant
changes, and these changes have had a considerable impact on customer behavior. Customers
have become more discerning and demanding, expecting an omnichannel experience, and
seeking out discounts and promotions. To remain competitive, retailers must continue to adapt to
these changes and meet the evolving needs of customers.
Marjane Holding is one such company that has recognized the importance of a well-managed
supply chain in achieving business success. As a leading retailer in Morocco, Marjane Holding
operates a complex supply chain network to ensure that its stores are well-stocked and able to
meet the needs of customers. In this chapter, we will analyze Marjane Holding's supply chain
management strategies, examining its sourcing, distribution, and inventory management
practices. We will also evaluate the effectiveness of these strategies and their impact on the
company's operations and customer satisfaction. By exploring Marjane Holding's supply chain in
detail, we can gain valuable insights into the best practices for supply chain management in the
retail industry and identify areas for improvement.

I. General Presentation of Marjane Holding:

1.1. Marjane in few words :

Marjane Holding is a well-known company in Morocco that operates in the retail sector. It is one
of the largest retail companies in the country and has a wide range of retail stores, including
hypermarkets, supermarkets, and specialized stores.

31
Marjane Holding was founded in 1990 and is headquartered in Casablanca, Morocco. The
company operates under various brand names, including Marjane, Acima, and Electroplanet.
In addition to retail stores, Marjane Holding is also involved in other business activities, such as
real estate development, financial services, and logistics. The company is known for its
commitment to providing quality products and services to its customers, as well as its focus on
sustainability and social responsibility.
In 30 years, the company has multiplied its distribution channels, opened 150 stores in 30 cities
of the Kingdom and contributed to the development of the purchasing power of Moroccans by
offering them quality products at affordable prices.
By continuously seeking to be closer to its customers and to meet all their expectations, in
particular by the development of its network, Marjane Holding is positioned as a leader of the
large-scale distribution in Morocco.
-Activities :
Marjane Holding operates on two main poles of activities, the "distribution" and "real estate"
poles.The distribution division includes the market leaders, Marjane, Marjane Market and
Electroplanet. The real estate division manages and develops the commercial assets which
include shopping centers, shopping malls and business parks.

Marjane Holding manages and develops an important commercial heritage. Its commercial
spaces welcome national as well as international brands. With a capital which amounts to more
than 441.000 m2 commercial GLA, Marjane Holding becomes a national socio-economic actor,
leader in its field.

32
 Founded 1990

Headquarters Casablanca, Morocco

Over 150 in more than 30 cities (including hypermarkets,
Number of stores supermarkets, and convenience stores)

16.6 billion Moroccan dirhams (approximately $1.8

Revenue billion USD) in 2020
370 million Moroccan dirhams (approximately $40
Net income million USD) in 2020
Approximately 16.8 billion Moroccan dirhams
Market capitalization (approximately $1.9 billion USD) as of May 2023

E-commerce platform Marjane.ma (launched in 2019)

Label'Vie (Marjane is a subsidiary of Label'Vie, a leading
Parent company retailer in Morocco)

figure 3.Technical sheet of Marjane Holding.

Figure 4. organizational chart of Marjane Massira store.

MR : Merchandise reception service .

DM : Department Managers.

33
1.2.Infrastructure:

Marjane Holding operates an extensive infrastructure that supports its retail operations in
Morocco. The company's infrastructure includes:
1. Stores:
The company operates more than 100 stores,
including hypermarkets, supermarkets, and
convenience stores, with a total retail selling space of
over 750,000 square meters. The stores are located
in various regions across Morocco, including urban
and rural areas, and serve more than 30 million
customers annually.

2. Warehouses and Distribution Centers:

To ensure efficient distribution of products to its stores, Marjane operates several
warehouses and distribution centers throughout Morocco. The company's main
distribution center is located in the city of Casablanca, and it operates additional
warehouses and distribution centers in other major cities such as Rabat, Marrakech,
and Agadir. These facilities are equipped with advanced technology and logistics
management systems to optimize inventory management, reduce delivery times,
and improve overall supply chain efficiency. Marjane's total warehousing space
exceeds 500,000 square meters, and the company employs over 2,000 people in its
logistics operations.

3. E-Commerce Platform:
In 2019, Marjane launched its e-commerce platform, marjane.ma, to expand its
digital retail operations. The platform offers customers the convenience of shopping
online, and the company has reported significant growth in online sales in recent
years. According to Marjane's 2020 annual report, e-commerce sales accounted for
5% of the company's total revenue in 2020, up from 2% in 2019.
4. Technology:
Marjane also invests heavily in technology to manage its retail operations. The
company uses advanced point-of-sale systems, inventory management software,
and logistics management systems to optimize operations and reduce costs. Marjane
has also implemented an RFID-based inventory management system in some of its
stores to improve inventory accuracy and reduce stockouts.
5. Transportation:
In addition, the company operates a fleet of more than 500 trucks and vans for the
transportation of products between its warehouses, distribution centers, and stores.

34
 The company also uses third-party logistics providers to optimize transportation
operations and ensure timely delivery of products.
Overall, Marjane's infrastructure is well-developed and designed to support its retail
operations in Morocco. The company invests heavily in technology and logistics
management to ensure operational efficiency, reduce costs, and provide high-quality
products and services to its customers.

II. Supply Chain in Marjane :

Marjane is a vertically integrated retail company, which means that it controls many
aspects of its supply chain, from sourcing products to distribution and retail operations.
The company has invested heavily in building a robust infrastructure to support its
operations across Morocco.This is a simplified representation of the supply flows in
Marjane Holding, and there may be additional steps or complexities in the actual process .
However, this should provide a basic understanding of how the company manages its
supply chain to provide products to its customers.

2.1.Identifying the supply flows:

This table provides a clearer and more organized representation of the supply flows in
Marjane Holding.

35
 Procurement
Marjane sources products from a variety of domestic and international suppliers. The company works closely with its
suppliers to ensure a wide range of products is available to customers.

Warehousing and Distribution

Products are transported to Marjane's warehouses and distribution centers located across Morocco to ensure efficient
distribution.

Inventory Management
Advanced inventory management software is used to track the movement of products within the supply chain. This
helps the company optimize inventory levels and reduce the risk of stockouts.

Store Operations
Products are delivered to Marjane's stores, where they are stocked on shelves for customers to purchase. The company
uses advanced point-of-sale systems to track sales and inventory levels in real-time.

Customer Sales
Customers purchase products from Marjane's stores either in person or through the company's e-commerce platform.
Marjane provides a high level of customer service and strives to offer competitive prices to its customers.

Returns and Exchanges

Marjane has a comprehensive returns and exchanges policy to ensure customer satisfaction. Products that are
returned or exchanged are processed through Marjane's supply chain to ensure proper accounting.

table 1.The supply flows in Marjane's chain.

Procurement is one of the many tasks of what we call " Department Manager " , in Marjane
each section of the store has its own flow of merchandise depending on the nature of it ,
usually the store is divided into 5 main Sections and each section is divided into different
departments , these sections are :

36
 PGC (High EM
PF (Fresh
consumption Bazaar Textile (Household
products)
products) appliances)

table 2.The five big sections in marjane store

Depending on the store’s operations , and the store needs in employees , Marjane either
hires Section managers or department managers to take care of the task, a manager needs
to follow these steps in order:

1. Identify Needs: The first step in the procurement process is to identify the needs of
Marjane's stores and customers. This is done by analyzing sales data, market trends,
and customer feedback.
2. Supplier Selection: Once the needs are identified, Marjane's procurement team
selects potential suppliers who can provide the required products. The team
evaluates potential suppliers based on their quality, pricing, and delivery
capabilities. Marjane sources products from both local and international suppliers.
3. Negotiation: After selecting potential suppliers, Marjane's procurement team
negotiates with them to finalize the terms of the agreement. This includes
negotiating pricing, quality standards, and delivery schedules. The team works to
ensure that Marjane gets the best value for its money while maintaining high quality
standards.
4. Purchase Order: Once the terms of the agreement are finalized, Marjane's
procurement team issues a purchase order to the supplier. The purchase order
includes details such as the quantity, price, delivery date, and payment terms.
5. Receiving and Inspection: When the products arrive at Marjane's warehouses or
distribution centers, they are inspected to ensure that they meet the required
quality standards. This includes checking for damage, expiration dates, and
compliance with regulatory requirements.
6. Inventory Management: Marjane's inventory management system tracks the
movement of products throughout the supply chain. This ensures that products are

37
 available when needed and minimizes the risk of overstocking or stockouts.
7. Payment: Marjane's accounting department processes payments to suppliers based
on the agreed-upon payment terms. This includes verifying that the products were
received and that they meet the required quality standards.

Overall, Marjane's procurement process is designed to ensure that the company can
efficiently source high-quality products from a range of suppliers.

2.2. Methods of replenishment:

Good inventory management and process improvement as well as the effectiveness and
efficiency of the services offered by Marjane, is to manage the replenishment well.
The Efficient Consumer Response ECR is one of the most efficient strategies that brings
together the distributor and the warehouse in order to offer the consumer a good quality
product to the consumer at a reduced cost, in real time, while reducing the costs associated
with delivery. To achieve this, the supply chain has been automated and one of the methods
to facilitate the compliance of information at each of the parties is Computer Aided
Replenishment (CAR).
The CAR is a tool fed by all the data collected on the sales, the outgoing
of the stored products and the modalities of replenishments predefined between the
warehouse/distributor and the supplier. Based on this data, it automatically establishes the
order sheets.

Benefits of CAR:

The adoption of CAR at the supply chain level helps avoid disputes due to poor information
flow. Due to poor information flow. It contributes to the reduction of the costs generated by
and traditional supply chain costs. The dynamization of the supply chain contributes to the
reduction of the out-of-stock periods, leading to increased sales and better customer
satisfaction. It also frees up staff for other tasks.

2.3. The Casablanca Distribution Center project:

The Casablanca Distribution Center is Marjane's main distribution hub and is considered to
be one of the largest and most advanced logistics centers in Africa. Here are some key
details about the center:

38
 illustration 1 .Inside Marjane's distribution warehouse

Location: The Casablanca Distribution Center is located in the Zenata industrial area,
which is approximately 25 kilometers from the city center of Casablanca.

Size: The center covers an area of over 100,000 square meters and includes 85,000 square
meters of storage space.

Capacity: The center has the capacity to store up to 25,000 pallets of goods.

Technology: The center is equipped with advanced technology and logistics management
systems, including automated storage and retrieval systems and conveyor belts, to
optimize inventory management and distribution operations.

Transportation: The center is strategically located near major highways and ports,
allowing for efficient transportation of products throughout Morocco.

Employees: The center employs over 1,000 workers, including logistics experts,
warehouse managers, and support staff.

Operations: The Casablanca Distribution Center serves as the central hub for Marjane's
supply chain operations, receiving products from suppliers and distributing them to over
100 Marjane stores throughout Morocco.

In addition to the Casablanca Distribution Center, Marjane operates several regional

warehouses and distribution centers throughout Morocco to ensure efficient distribution of
products to its stores across the country.
The Casablanca Distribution Center has been a crucial element in Marjane's supply chain,
contributing to the company's ability to efficiently manage its inventory and ensure timely
delivery of products to its stores.
Overall, the Casablanca Distribution Center has played a crucial role in Marjane's ability to
efficiently manage its supply chain operations and ensure timely delivery of products to its
stores. The center's advanced technology and logistics management systems, coupled with

39
its strategic location, have enabled Marjane to optimize inventory management and
streamline its distribution operations, ultimately resulting in improved customer
satisfaction and increased sales.

III. Inventory Management in Marjane:

3.1.Inventory valuation :

Marjane in its policy of valuation of the stocks adopts two principals.

methods of valuation, either the weighted average price WAP for any set of articles either
in the Food or Non-Food sector, and the catalog method for fresh products (PF)

The inventory is done twice a year, the first is during the month of June and the second
during the month of December. It is a general inventory of food and not food except for
fresh products. The inventory of fresh products is done every two weeks because of the
specifications of the
products sold.

The objectives of the inventory valuation are :

- Real valuation of the stock.
- Update of the "Gold" stock.
- Calculation of shrinkage by department.
- Store comparison in terms of inventory management.
- More realistic estimate of inventory depreciation ("markdown")

The physical inventory must not compromise :

- sales,
- the orders,
- storekeeping,
- customer service.

The inventory is based on a one principle is that it must allow for the valuation of a healthy
stock. Thus:
-no article in the "S" state must not exist in stock it must be identified before inventory,
isolated and marked "S status zero".
- Freebies:
o Referenced and saleable: are inventoried normally and valued at the last
purchase price,
o not referenced (lot for tombola) should NOT be inventoried, must be isolated and marked
"Free of charge".
- Returnable items must not be inventoried, must be isolated and marked "Zero value
returnable items".

40
-Markdowns must be fully reported prior to inventory. must be entered before midnight
when it is noted during the inventory.
- Supplier returns o Must be isolated and marked "S status zero".

-Retro Planning :

Retro planning is an important process in Marjane's inventory management, ensuring that

inventory is properly accounted for and organized. Here is an explanation of the retro
planning process:
1. Starting Point of Inventory: The retro planning process begins with determining the
starting point of the inventory. This is the reference point for counting and
reconciling inventory levels. It serves as a baseline for comparison during the
inventory process.
2. Validation by Store Manager: Approximately one month before the inventory date,
the Store Manager validates the inventory plan. This involves reviewing and
approving the inventory schedule, ensuring its accuracy and feasibility.
3. Communication by Management Controller: Once the inventory plan is validated, it
is communicated by the Management Controller to all relevant participants. This
ensures that everyone involved in the inventory process is aware of the schedule
and their responsibilities.
4. Retro Schedule: The retro schedule specifies the days and times for different stages
of the inventory. It sets specific dates for the reserve and hypermarket inventory. It
also outlines the different stages of the general inventory, along with corresponding
actions, start and end dates, responsible individuals, and controllers responsible for
overseeing the actions.
5. Separation of Tasks: To maintain the principle of separation of tasks and ensure
accuracy, different individuals are assigned to perform specific tasks. Counting and
control counting stages are carried out by different people, as are scanning and
scanning control stages. This helps prevent errors and ensures the integrity of the
inventory process.
6. Restocking Planning: Before starting the reserve inventory, department managers
must plan the restocking of store merchandise with

For Marjane to provide an accurate valuation, evaluating the inventory management of a

company involves assessing various factors, such as inventory turnover, carrying costs,
obsolescence, stockouts, and overall efficiency.
To evaluate the inventory management of Marjane, one would need to consider key
performance indicators (KPIs) such as:
1. Inventory Turnover Ratio: The inventory turnover ratio measures how efficiently
a company is utilizing its inventory. It indicates how quickly inventory is sold and
replaced within a specific period. A higher turnover ratio suggests efficient
inventory management and faster inventory turnover.
Formula: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

41
 The Cost of Goods Sold (COGS) is obtained from the income statement, representing
the direct costs associated with producing or acquiring the goods sold during a
specific period.
2. Stockout Rate: The stockout rate measures the frequency and duration of
stockouts, which occur when desired inventory is not available to meet customer
demand. A low stockout rate indicates effective inventory planning and
replenishment, ensuring that sufficient stock is available to fulfill customer orders.

Formula: Stockout Rate = (Number of Stockouts / Total Sales) * 100

3. Carrying Costs: Carrying costs refer to the expenses incurred in holding and storing
inventory. It includes costs such as storage, insurance, depreciation, and
opportunity costs. Analyzing carrying costs helps assess the financial impact of
holding inventory and highlights areas for potential cost reductions.
Formula: Carrying Costs = (Storage Costs + Insurance Costs + Depreciation Costs +
Opportunity Costs) / Average Inventory

4. Obsolescence Rate: This metric assesses the percentage of inventory that becomes
obsolete or outdated. Minimizing obsolescence is crucial to avoid losses and
improve inventory management efficiency.

Formula: Obsolescence Rate = (Obsolete Inventory / Total Inventory) * 100

The Obsolete Inventory represents the value of inventory that is no longer sellable
or has lost its value. Total Inventory refers to the overall value of inventory at a
specific point in time.

5. Accuracy of Inventory Records: This measures the accuracy of inventory data,

including tracking discrepancies between actual inventory and recorded inventory
levels. Accurate inventory records enable better decision-making and efficient stock
management.
It is essential to analyze these factors and compare them with industry benchmarks and
Marjane's own historical data to evaluate the effectiveness of their inventory management.
Accessing Marjane's financial reports or conducting a detailed analysis would provide more
specific and accurate insights into the valuation of their inventory management practices.

3.2.An insight at GOLD System :

The GOLD system is the solution used by Marjane, known for its comprehensive capabilities in
managing various aspects of retail operations. Here are some key points about the GOLD system:

1. Overview: The GOLD system is an integrated retail management software It offers a wide
range of functionalities to support retail operations, including point of sale (POS), inventory
management, customer relationship management (CRM), merchandising, pricing,
promotions, and more.

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 2. Point of Sale (POS): The GOLD system provides a robust POS module that handles sales
transactions, payment processing, and customer interactions at the store level. It supports
various transaction types, including cash, credit card, gift card, and loyalty program
transactions.
3. Inventory Management: The GOLD system offers comprehensive inventory management
capabilities. It enables retailers to track and manage inventory levels, replenishment, stock
movements, and stock transfers across multiple branches of Marjane. The system helps
optimize inventory levels, reduce stockouts, and improve overall inventory accuracy.
4. CRM and Loyalty: With its CRM functionality, the GOLD system allows retailers to capture and
analyze customer data, manage customer profiles, and execute targeted marketing
campaigns. It supports loyalty programs, enabling retailers to reward and engage with loyal
customers through personalized offers and promotions.
5. Merchandising and Pricing: The system assists retailers in managing product catalogs, pricing
strategies, promotions, and markdowns. It enables retailers to set up complex pricing
structures, manage promotions and discounts, and monitor sales performance.
6. Reporting and Analytics: The GOLD system provides reporting and analytics capabilities,
allowing retailers to generate various reports on sales, inventory, customer behavior, and
other key performance indicators. These insights help retailers make informed decisions and
optimize their business operations.
7. Integration and Scalability: The GOLD system is designed to integrate with other enterprise
systems, such as financial management, supply chain management, and e-commerce
platforms. It is scalable and can accommodate the needs of retailers with single stores or
multiple locations.

The GOLD system is widely adopted by retailers globally due to its comprehensive features, flexibility,
and ability to streamline retail operations. Its integrated approach helps retailers drive efficiency,
improve customer service, and make data-driven decisions to stay competitive in the retail industry.

Chapter 2 –Evaluation and internship in Marjane

Holding :
My internship in Marjane was 3 months long , it took place in Marjane Marrakech Massira
branch which has been functioning since 2003 , HR department since the day I applied for
the internship was very welcoming and very collaborative , which shows Marjane’s new
orientations and tendencies towards its social responsibility .To make the most out of my
experience I have decided to divide my internship into 3 main periods to make it
multidisciplinary so I kept changing departments each time and had to learn about
Marjane’s operations form different perspectives . In this section, we will delve into the
process of merchandise reception, merchandise flow , department managing in Marjane.
Merchandise reception plays a critical role in ensuring the smooth flow of goods from
suppliers to Marjane's stores. It involves various stages, including verification, inspection,
and documentation, to ensure that the received merchandise meets quality standards and

43
matches the corresponding purchase orders. We will explore the key steps involved in
merchandise reception and highlight the importance of efficient and accurate handling of
incoming goods for Marjane's operations. I have spent the first month of my internship in
this department with the track manager and litigation manager.

I. Reception of merchandise :

1.1.The process of reception:

Reception is the act by which the receiver of the goods takes full possession of the goods at
the time of delivery by the supplier or a designated third party.
The receiver is obliged to check the conformity of the delivered goods at the time of
delivery before signing the delivery note. Any anomaly concerning the delivery (damage,
missing product compared to the delivery order, damaged package.) must be imperatively
indicated on the delivery order, accompanied by the signature of the controller.

After control, the receiver takes delivery and registers different goods.
His/her work in a general way is summarized as follows:

Verify delivery Unpacking the

Supervising the Supervise the documents to goods to insure
unloading of storage of ensure that that they are Issue the
goods from goods in the what is written comform to the reception into
trucks or other receiving on them quantity and the documents
means of Platform; corresponds to the quality
transport the goods required
recieved

Figure 5. The tasks of the merchandise controller.

44
There are 2 types of reception:
- Receipts of warehouse deliveries ( from Casablanca’s distribution center) which require a
targeted control.
- Receipts of direct deliveries which require exhaustive control.

We can summarize the whole process as follows:

Placing the order :( D-1)
This is an operation entrusted to the sales assistant based on an order form
and signed by the department manager.
Reception of the goods : (D)
The supplier is responsible for unloading the merchandise from the trucks.
All unloaded merchandise must be received immediately.
Checking the delivered goods (quantity and quality):
The receiver must first check whether the quality standards predefined for each type of
product are respected (quantity and quality , temperature of the truck and the product,
expiration date, ...) then to proceed to the inventory of the quantity of goods delivered by
filling in the receipt form.
The receiver/Merchandise controller is obliged to return the goods immediately in
the following cases:
- Manufacturing defect, damaged or defective goods or close to expiration date.
- The quantity delivered is greater than the quantity received: the quantity not ordered is
refused.
- The code or the designation of an article is not in conformity with the receipt.
- The article is missing on the reception order( any unknown article or not foreseen on the
reception order is refused.)
The reconciliation between the delivery order and the reception order &
establishment of the Receiving note and Return note:
The reconciliation officer is required to verify the differences between what was received
and what was delivered by the supplier. Then establish the receipt note which includes a
certain amount of information:
- Delivery date.
- Number of the Delivery Note ( BL).
- Name of the receiver.
- Department concerned.
- Supplier's references(CNUF).
In the case of an anomaly noted at the time of the reception of the goods (cases mentioned
above),the reconciliation agent must establish an immediate return slip, which is given to
the supplier to be signed on the spot.
Receipt Entry:
45
After the reconciliation and the establishment of the receiving slips and the return slips,
the data entry agent is required to edit the list of receipts on the GOLD software, while
correcting the quantities received in the case of immediate return.
The GOLD Receipt List includes the following:
- Date.
- The department.
- Receipt number.
- The CF (supplier code).
- The supplier's name.
- The order number.
Once the merchandise has been labeled and checked, it is transported to the warehouse to
be stored on "racks", in the reserve of the department concerned. It is stored by
department.

- As far as my experience is concerned, I am glad I got to assist in all of these operations

mentioned above .

II. The Merchandise flow project :

The merchandise flow project was adopted by Marjane Massira in 2018 to optimize the
logistic operations of the whole store and get a better , smooth flow of information between
the whole employees of the store , the merchandise flow department operates in parallel to
the whole store from MR to the inside operations , but it mainly concerns the warehouse
since it is the spine of the store. I got to spend the second month in this department to
know more about the logistic operations of the store. In this section we will get to know
more about this project .
2.1.Overview:
Objective :

 To improve customer satisfaction by ensuring the availability of products on the shelves and by
offering a wide choice.
 To improve the productivity of the teams during the stocking of the reserves and the filling of the
shelves by establishing an effective organization and by guaranteeing safety at work.

Project performance is measured by the following indicators:

 Improvement of the detention rate.

 Decrease the rate of unfilled items.
 Reduce the shortfall on the top 1000 sold items.
 Improve the number of different items.

The Flow of merchandise inside the store :

46
 Merchandise Quantitative/
controling qualitative
Returns team reconciliation

Sales
operations Warehouse
team

Filling of the
shelves Flow management
(yellow/red zone/reserve
storage)
Palett
Filling team preparation
team

Restocking
and pallets
d+1

Figure 6.the merchandise flows in the store.

47
-Reception area organisation :

Yellow zone : 24 H zone

dedicated to local and imported
goods.
This merchandise will be
deposited in the shelves the next
day at 7am at the very latest by
the reserve team.

Illustration 2.Yellow zone in the

reception area

Red zone : Red zone for returned pallets for

storagethis overstock will be processed and
stored in the racksWith an address of each
item and each pallet.

Illustration 3. Red zone in the reception area

2.2.Flow control:

 Storage adress :
Tagging the racks with storage addresses by Zone and by box will help any employee of the
store to access any item at any time they need it . This saves the efforts of looking for the

48
article and reaching out to the Manager in order to get them , because when a customer
needs it the store employee has to immediately find it .

Illustration 4.the yellow straps are the tags of the Racks in the warehouse

Illustration 5. A PDA ( Personal Digital Assistant )

The use of the PDA will allows to :

1/ scan all the articles and paste the sequence number on the pallet (FSE reserve).

2/ put away the pallet in a free storage address (forklift operator)

49
3/ to inform on a register of follow-up the address corresponding to each sequence

4/ extraction of the sequence numbers and classification in an excel workbook

5/ Entering the EANs will indicate the location of each article in the reserve to save time
during pallet preparation.

Efficient merchandise flow within the store is crucial for maintaining customer satisfaction,
reducing stockouts, and optimizing sales. By implementing effective processes and utilizing
technology, Marjane ensures that products are properly managed, restocked, and easily
accessible to customers, contributing to a seamless and pleasant shopping experience.

3.The problems solved by the adoption of the project :

 Lack of urban transportation

- Delayed arrival of merchandisers.
- Disorganization of the teams at the reception.

 High concentration of staff in a limited space (Reserve)

- Risk of accidents.
- High waiting time to access the merchandise.
- Risk of breakage and markdowns.

 Dependence of the Marjane teams on the Merchandisers

- Lack of product knowledge.
- No storage of the reserves Frs.
- Lack of productivity.
- Expectations of Merchandisers to put away stock and fill up.

 Lack of technical means, pallet truck, forklift truck, and PPE (Personal Protective
Equipment)
- Delay of production.
- Stress of the teams.
- Lack of productivity and delay of execution.
- Deterioration of the technical material.
- Risk of accidents.

 Delay in store cleaning:

- High traffic of merchandisers.
- Poorly cleaned store at opening.
- Packaging scattered on the shelves.
- Crossing between the cleaning team and the merchandisers.

50
  High breakage rate:it’s when the merchandisers don’t fill up the sections before the
store opens , which means the need for items is higher than the ones exposed to the
clients due to bad management.
The analysis of the breakage allows us to highlight the following information:
 Number of items not filled
 Number of articles not ordered
 Number of articles on breakage supplier: All the articles whose order was placed but not
delivered by the supplier.
 Number of missing markup
The breakage follow up is done through a dashboard that calculates the breakage rates for
each department and it looks like this for the consumable products areas as an example :

Table 3 . The results after dashboard analysis for the breakage rate

III. Last month, internship as assistant to the electronics

department manager (new technology, Sound, and image
devices)

The department manager is responsible, with the help of his team, for the management and
animation of a specialized department with the objective of generating traffic and
increasing sales. He is therefore responsible for placing products in his department,
welcoming customers, and optimizing sales.

51
Especially in a department like this , the pressure is immense since the monthly objectives
for sales are too high compared to other departments but also the amount of money
invested into buying products . We can generalize the products in this department as
follows :
- TVs
- Phones and tablets
- Laptops and desktops
- Accessories such as : Chargers , gaming sets accessories , headphones , speakers ….

On the big scale , the Electronics department manager has a crucial role in the circulation of
information and the flow of products throughout the whole process of buying and selling ,
it is a challenge to maintain a good performance rate under variant circumstances .The
main job of the department manager in Marjane is to oversee and manage the operations as
they are responsible for ensuring the efficient and effective functioning of their
department, meeting sales targets, and delivering a positive customer experience. Some of
the key responsibilities the department manager of electronics include:

1. Team Management: The department manager is responsible for supervising and

leading a team of employees working in their department to ensure proper staffing,
provides guidance and support to team members, and fosters a productive and positive
work environment. The members also work as salesmen for their monthly income depends
on their performance ( commission )

2. Sales and Performance: The department manager is accountable for achieving sales
targets and driving the department's performance. They monitor sales trends, analyze data,
and implement strategies to maximize revenue and profitability.

3. Inventory Management: Department managers oversee the inventory within their

department, ensuring appropriate stock levels, proper storage, and timely replenishment.
They collaborate with the supply chain team to optimize inventory turnover and minimize
stockouts or excess inventory. The products of this department are more expensive and
sensitive to certain conditions of stocking , the products such as phones and laptops are
stacked in a cage that is closed and will not be opened unless there is a security agent
present to recess the situation.

4. Customer Service: Providing exceptional customer service is a priority for department

managers. They train and develop their team members to deliver excellent customer
experiences, address customer inquiries and complaints, and maintain high standards of
customer satisfaction.

5. Merchandising and Visual Display: Department managers are responsible for the
visual merchandising and display of products in their department. They ensure that
products are well-presented, attractive, and in line with the company's branding and
marketing strategies.

52
6. Performance Analysis: Department managers analyze sales data, inventory reports,
and other relevant metrics to assess the performance of their department. They identify
areas for improvement, develop action plans, and implement strategies to optimize
performance and achieve set goals.

We are going to focus on the supply and inventory performances parts since they are the
main key parts of my report.

- Supply methods in the electronics departments :

In the process of procurement , the department managers in Marjane adopted the Agile
Model (Page .20) , this model is best for this kind of department due to the changing rates
of consumption as well as the variety of products which always have new and updated
versions especially cell phones and televisions. As far as supply goes , there are two main
flows :

I. Central flow : the central flow Is when products are offered by the headquarter of Marjane in
Casablanca , the products are suggested to the department managers of all Marjane branches
throughout the country, they receive a monthly register through GOLD system which
compares their sales with the last orders , and suggests the quantity of products in need , all
the manager has to do is to confirm the suggestion to receive it , or deny it if the product is
not as good as others in terms of sales ;
II. Direct flow : it’s the normal method of procurement in which the manager orders according
to the demand or the shortage in products , what’s special about this department is that the
suppliers are always in contact with the managers concerning new versions of products and
new upgrades .

IV. Synthesis , evaluation, and suggestions :

Marjane, a prominent company in the retail industry, was the focus of this report, which
shed light on its supply chain, inventory methods, and the optimization of costs through the
implementation of new ways and systems. The report underscores the importance and
revolutionary nature of adopting such approaches for companies like Marjane, while also
highlighting the potential challenges that may arise due to its reliance on outdated supply
chain and inventory management practices. The report initiates by recognizing Marjane's
influential position in the market and emphasizing the critical role that an efficient supply
chain and inventory management play in driving customer satisfaction, profitability, and
overall business success. It emphasizes the significance of streamlining processes,
enhancing visibility, and making data-driven decisions in the context of supply chain and
inventory management.

To address the existing challenges, we need to highlight the need for Marjane to embrace
new ways and systems that leverage modern technologies. Automation, data analytics, and
advanced inventory management systems which are key tools that can optimize
operations, improve forecasting accuracy, and enhance overall efficiency. By implementing
these innovative approaches, Marjane can reduce costs, mitigate stockouts, and improve

53
inventory turnover rates, ultimately leading to improved profitability and customer
experience.

However, we have to acknowledge the potential problems that Marjane may face in the
future if it fails to modernize its supply chain and inventory management practices.
Marjane could struggle to meet evolving customer demands, compete with more agile
competitors, and maintain profitability.
These problems can hinder the company's operational efficiency, customer satisfaction,
and overall profitability. Some of the key issues that Marjane may face include:
1. Inaccurate Demand Forecasting: Marjane's reliance on manual or traditional
demand forecasting methods can lead to inaccuracies in predicting customer
demand. This can result in either overstocking or understocking of products, leading
to increased costs, inefficient inventory management, and potential loss of sales.
2. Excessive Inventory Holding Costs: Outdated inventory management practices
may result in excessive holding costs. This includes costs associated with storing,
handling, and managing inventory over prolonged periods. Inefficient inventory
turnover can tie up capital, increase storage expenses, and potentially lead to
obsolescence or wastage of products.
3. Stockouts and Lost Sales: Inadequate inventory management processes can result
in frequent stockouts, where popular products are unavailable to customers. This
can negatively impact customer satisfaction, erode customer loyalty, and lead to lost
sales opportunities. Stockouts also increase the risk of customers seeking
alternative shopping options.
4. Inefficient Replenishment Processes: Manual or inefficient replenishment
processes can lead to delays in restocking inventory. This can result in inconsistent
product availability, hamper the ability to meet customer demands promptly, and
impact sales performance.
5. Lack of Inventory Visibility: Limited visibility into inventory levels, especially
across multiple store locations, can hinder effective supply chain decision-making.
This can lead to challenges in coordinating supply and distribution efforts, resulting
in inefficiencies and potential stock imbalances.
6. Supplier Management Issues: Poor supplier management practices, such as
inadequate communication, delayed deliveries, or inconsistent quality, can disrupt
the supply chain and impact inventory management. This can result in stockouts,
lower product availability, and potential strain on customer relationships.
7. Limited Integration of Technology: A lack of integration of modern technology
solutions, such as inventory management systems, data analytics, and automated
processes, can hinder Marjane's ability to optimize supply and inventory
management. Without utilizing advanced tools, Marjane may struggle to improve
efficiency, reduce costs, and enhance decision-making capabilities.
Addressing these problems and transitioning towards more efficient supply chain and
inventory management practices is crucial for Marjane's long-term success. By
implementing advanced technologies, adopting automated processes, improving demand
forecasting accuracy, and enhancing supplier relationships, Marjane can overcome these
challenges, optimize costs, and deliver superior customer experience.

54
4.1.Qualitative approach :

One quantitative approach for addressing the supply and inventory problems faced by
Marjane is to implement a demand-driven inventory management system using advanced
forecasting techniques and data analytics. This approach involves leveraging historical
sales data, market trends, and customer behavior to optimize inventory levels and improve
supply chain efficiency. Here is a step-by-step quantitative solution:

1. Data Collection and Analysis: Gather at least 3 years of historical sales data, customer
purchasing patterns, and other relevant data sources. Analyze the data to identify trends,
seasonality, and demand patterns for different product categories. For example, analyze
monthly sales data for each product category to identify high-demand periods and
fluctuations.

2. Demand Forecasting: Utilize statistical forecasting models, such as moving averages,

exponential smoothing, or ARIMA (Autoregressive Integrated Moving Average), to generate
accurate demand forecasts for each product category. For instance, use a 12-month moving
average to smooth out seasonal variations and predict future sales. Consider factors such
as seasonality, promotions, and external market conditions in the forecasting process.

3. Inventory Optimization: Determine optimal inventory levels based on the demand

forecasts, service level targets, and cost considerations. Use inventory optimization
techniques such as economic order quantity (EOQ) models and reorder point calculations.
For example, set a service level target of 95% and calculate EOQ based on the average
demand and lead time for each product category.

4. Supplier Collaboration and Integration: Analyze historical supplier performance data to

identify areas for improvement. Collaborate with key suppliers to reduce lead times and
enhance the reliability of deliveries. Implement electronic data interchange (EDI) or other
technology solutions to streamline the ordering and replenishment process. For instance,
aim to reduce lead time from an average of 10 days to 7 days through improved supplier
collaboration.

5. Real-time Inventory Monitoring: Implement a real-time inventory tracking system using

barcode scanning, RFID technology, or other automated identification methods. This allows
for accurate visibility into inventory levels, enabling timely replenishment decisions. For
example, implement RFID technology to reduce inventory discrepancies and achieve an
inventory accuracy rate of at least 98%.

6. Continuous Improvement and Performance Measurement: Regularly review and refine

the forecasting models and inventory management strategies based on actual sales data
and performance metrics. Monitor key performance indicators (KPIs) such as inventory
turnover ratio, stockout rate, and customer satisfaction. Aim to increase inventory turnover
ratio from 4 to 6 times per year and reduce stockout rate from 10% to less than 5%.

55
7. Technology Adoption: Invest in advanced inventory management software or enterprise
resource planning (ERP) systems that integrate demand forecasting, inventory
optimization, and supplier management functionalities. For example, implement an ERP
system that reduces manual data entry errors by at least 50% and provides real-time
insights for decision-making.

By implementing this quantitative approach, Marjane can optimize its inventory levels,
reduce stockouts, minimize holding costs, and improve overall supply chain efficiency. For
instance, based on historical data and forecasting models, Marjane can reduce excess
inventory by 15%, resulting in cost savings of 500,000 DH annually. The use of data-driven
forecasting, inventory optimization techniques, and technology integration will enable
Marjane to make informed decisions, meet customer demands accurately, and enhance
profitability.

4.1.Qualitative approach :

The solutions that seem to be more acquainted with Marjane’s needs are more futuristic
and adapted to the needs of the new generation of customers and suppliers also :
1. Process Evaluation and Optimization: Conduct a comprehensive evaluation of Marjane's
supply chain and inventory management processes, utilizing process mapping and value
stream analysis. Identify inefficiencies, such as bottlenecks, excessive lead times, and
manual data entry. Optimize processes through the adoption of lean principles, such as
Just-in-Time (JIT) manufacturing and Kanban systems, to streamline operations and
minimize waste.

2. Cross-Functional Collaboration and Integrated Planning: Foster collaboration among

departments involved in supply chain and inventory management, such as procurement,
operations, logistics, and sales. Implement Integrated Business Planning (IBP) frameworks
that enable data sharing, synchronized decision-making, and alignment of demand and
supply. Utilize advanced collaboration platforms and cloud-based systems to facilitate real-
time communication and information sharing among stakeholders.

3. Advanced Analytics and Predictive Insights: Leverage advanced analytics and machine
learning algorithms to analyze historical data, customer behavior, market trends, and
external factors. Implement demand sensing and predictive analytics models to improve
demand forecasting accuracy, allowing for proactive inventory planning, dynamic safety
stock calculations, and optimized order fulfillment.

4. Digital Twin Technology: Adopt digital twin technology to create virtual replicas of
Marjane's supply chain and inventory management systems. These digital twins enable
real-time monitoring, simulation, and optimization of processes, allowing for proactive
decision-making, scenario testing, and risk mitigation. Augmented reality (AR) and virtual
reality (VR) can be utilized for immersive training and simulation of supply chain
operations.

56
5. Internet of Things (IoT) and Sensor Integration: Deploy IoT devices and sensors
throughout the supply chain network to capture real-time data on inventory levels, product
movement, and environmental conditions. Enable seamless connectivity and data exchange
between these devices and enterprise systems, enabling enhanced visibility, inventory
tracking, and automated replenishment.

6. Blockchain Technology: Implement blockchain technology to enhance transparency,

traceability, and trust in the supply chain. Utilize smart contracts for automated order
processing, supplier collaboration, and payment settlements. Blockchain can improve
supply chain integrity, reduce counterfeiting risks, and enable end-to-end visibility for both
Marjane and its customers.

7. Robotics and Automation: Embrace robotics and automation technologies, such as

autonomous guided vehicles (AGVs) and robotic process automation (RPA), to streamline
material handling, warehouse operations, and inventory management tasks. Autonomous
drones can be utilized for inventory tracking, stocktaking, and efficient warehouse layout
optimization.

8. Sustainability and Green Practices: Incorporate sustainable practices into supply chain
and inventory management operations. Implement reverse logistics for product returns
and recycling initiatives. Utilize renewable energy sources, such as solar power, for
warehouse operations. Emphasize eco-friendly packaging materials and implement green
transportation strategies to reduce carbon footprint.

By adopting this qualitative approach and embracing futuristic technologies, Marjane can
revolutionize its supply chain and inventory management practices. The integration of
advanced analytics, digital twins, IoT, blockchain, and robotics enables a data-driven, agile,
and sustainable supply chain ecosystem. This approach enhances operational efficiency,
minimizes costs, improves customer satisfaction, and positions Marjane as a leader in the
retail industry.

57
 General Conclusion
The goal of every company is to efficiently pursue its profit in order to reach
an optimal level of competitiveness. Through the improvement of inventory
management and procurement processes, Marjane could strengthen its
position as the market leader in the distribution sector. Our study has
revealed certain weaknesses for which we have suggested solutions. While
these solutions may not be the best, we hope that their implementation could
contribute to the improvement of inventory management and, consequently,
the profitability and competitiveness of the company.
Regarding the problem under study, we were able to analyze the company
based on key concepts such as inventory management and procurement in
order to seek solutions to resolve this problem. We have tried to provide
effective suggestions . In a rapidly evolving market, the ability to effectively
manage supply and inventory will be a key differentiator for companies. It is
essential for Marjane to embrace change, invest in technology, and foster a
culture of innovation and continuous improvement. By doing so, Marjane can
overcome the challenges faced in supply chain and inventory management,
optimize costs, and position itself as a revolutionary leader in the industry.

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