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  • 1. 2012BY: Moezza Mir [SUPPLY CHAIN MANAGMENT]
  • 2. Metro Cash & CarryIntroductionMETRO Cash & Carry is the international leader in self-service wholesale which opened its firstoutlet in Islamabad in Sector I-11/4, near the Railway Carriage Factory. After Lahore successfulexperience METRO Cash and Carry opened its second outlet in Islamabad on April, 2008. Thenew METRO Cash & Carry wholesale center offers more than 20,000 food and non food itemsin Islamabad. More than 10,000 square meters of selling space in Islamabad outlets. METROsevers basically the restaurants, the shopkeepers and hotels as they target the business class.They issued only membership cards to only those customers which have their business proofs.History of METRO Cash & CarryIn 1964 Prof. Dr Otto Beishem founded METRO SB-Großmärkte GmbH & Co. KG, the selfservice wholesaler in Mülheim/Ruhr. In 1967 the Franz Haniel & Cie. company became apartner in the new venture. Prof. Dr. Otto Beisheim, the Franz Haniel & Cie. GmbH companyand the Schmidt-Ruthenbeck family then each held one third of the shares in the GermanMETRO activities and thus constituted the “original group of partners”.In 1968, the concept was extended beyond the German borders when the Dutch companySteenkolen Handelsvereeniging N.V. (SHV) becomes a new partner. In 1972 the first majorexpansion drives when METRO/MAKRO Cash & Carry entered the market of nine WesternEuropean countries. In the early 90s, METRO Cash & Carry expanded its activities to Portugal,Turkey, and Morocco and to Eastern Europe. METRO Cash & Carry merged with KaufhofHolding AG and Asko Deutsche Kaufhaus AG which founded the METRO Group on July 1996.That year also saw the group’s going public. The Metro stock is the only retail stock listed in theGerman blue-chip index “DAX 30“. The first outlet of METRO Cash & Carry in Asia wasopened in china in 1996. Today the company outlets are present in 5 countries of Asia that isChina, India, Japan, Pakistan and Vietnam. More than 80 % of the employees are workingoutside the Germany. METRO Cash and Carry is trying to expand its operations in Asia as wellas Western Europe.Vision of METRO Cash & CarryMETRO will dominate the cash and carry wholesale segment globally, through our uniquebusiness formula which improves competitiveness of our customers all over the world.Mission of METROMETRO is a cash and carry wholesaler for businesses and professionals. METRO providesquality of products and business solutions at the lowest possible prices
  • 3. Strategic Business Units:METRO Cash and Carry opened its first centre in Lahore on October 31, 2007. After that it isfollowed by a second opening in Islamabad on April 03, 2008. On January 14, 2009, METROCash & Carry opened its outlets in Faisalabad and in Lahore near airport road. METRO Cash &Carry after the successful business it is tried to opened its 5th outlet in Abbotabad.CustomersMETRO offers membership card to only commercial customers that will allow purchasing. Thecore customers are small and medium-sized traders as well as hotel, restaurant and cateringbusinesses and other companies and institutions.Management Information System:The life blood of any organization is MIS. Information is considered as a power because it isbelieve that nothing moves without information. Information is considered as an importantresource needed to develop other resources. In organization, MIS helps in achieving theorganizational objectives and in planning and controlling their processes and operations, help indealing with uncertainty and help in adapting to change or indeed initiating change.Supply Chain ManagementThe goal of Supply Chain at METRO is to efficiently handle thousands of orders, shipments anddeliveries and ensure that goods arrive at the right place at the right time.A supply chain consists of three types of entities: customers, a producer, and the producerssuppliers. The extended supply chain includes customers’ customers and suppliers’ suppliers.Supply chain management oversees and optimizes the processes of acquiring inputs fromsuppliers (purchasing), converting those inputs into a finished product (production), anddelivering those products – or outputs - to customers (fulfillment).Supply Chain Management plays an important role in our high-performance logistics system andenhances our capacity to supply food and non-food products on a daily basis with consistent highquality, diversity and freshness.
  • 4. Cold Chain ManagementThe distribution of products that are temperature-sensitive is a huge challenge. Quality andfreshness can only be assured if the goods are constantly kept under a temperature controlledenvironment, right from the time they leave the producer till they reach the customer.Logistic department in METRO Cash and CarryThe whole system of MIS in METRO is automated and is centralized. METRO Cash and Carryused Global Management System GMS to maintain huge data base.Global Management SystemA global management system provides the processes and tools required to ensure thatorganizations and people can complete all tasks required to achieve their goals. Manymanagement systems help people work together within organizations, but a global managementsystem provides the processes and tools required for people to keep tasks synchronized withinand between organizations.Simplified device managementGMS facilitates day-to-day administrative tasks across an entire distributed network. Thisincludes scheduled configuration backups, automatic software updates, and other vital devicemanagement functions. In addition, GMS can be used to drill down into individual appliances forspecific configuration, monitoring, and management tasks.
  • 5. Centralization of METRO Cash & CarryEarlier all applications were received and processed at Head Office Level which addeddifficulties for the customers as the processing took time too much. Now this process has beendecentralized by establishing HPBCs at various stations which is more effective. Logistics Administrator Floor Manager Store Manager Supervisor Sales personsFigure : 1 Logistics department Hierarchy of METROLogistics Administrator is the overall boss of the logistics department. He has every sort of ordergenerated through systems to the final receiving of goods. The Floor manager and the storemanager can make the order demand in system. After that the order demand is delivered tosupplier automatically through the systems.Stock demand is issued by the supervisor to t6e floor manager or the stock manager.Sales person report the supervisor about demand. After that supervisor inform the store managerfor the stock replacement. If stock is not available in the store the store manager has the authorityto generate order as well as to inform the floor manager to place an order in system.
  • 6. sales person supervisor store manager floor manager generating demand in systemFiqure : 2 Process flow of logistic department of METROIn METRO the sales person inform the supervisor about the deficiency of the goods. Thesupervisor then forwards the request to store manager and the floor manager. Both can generatethe demand on systems. After all this process the data is send to the MIS department where theygenerate a final order demand list using an GMS and after that demand list is send to differentsuppliers.Reports are formed on daily basis. In METRO ordering is of two types i.e. Head office orderingand store ordering. In head office ordering the head office involves them in placing orders ofexpensive products or goods because through this they keep their control over the demand. Instore ordering the floor manager or the store manager can generate the demand order.
  • 7. Software used in METRO Cash and Carry:Metro used Global Management System for the generating orders through systems. It basicallydeals with financial affairs. Managerial level can also access it and head office can also accessthe systems.It is used as a tool in Metro IT department. It gives up to date information. Metro totalinformation is based on MIS e.g. operation, stock management etcReports are formed on daily basis.Hardware’s of METRO Cash & CarryMetro uses the systems of HP in Asia and IBM in European countries.Advantages of HP Systems HP always follows the standardization policy in the building of its computers. This means thatthe hard disk of particular model of HP would remain same in all computers of same model.Disadvantages of HP SystemsHP only offers initially warranty on his products and will not support in any problem will face.There is no calling up HP tech support facility for the users for solving their problem on time.WANFiber opticsIn Metro Cash and Carry Micro net broadband Nayatel is provided by PTCL. So there are usinga public link don’t have their own link. As in Pakistan there are three outlets of Metro they areinterconnected through fiber optics.In METRO CASH & CARRY information is efficiently managed in WAN, there are differentbranches of METRO in different cities of Pakistan. Every branch has its own local databasewhich connected to main database located in Germany. The internet connectivity is provided toeach branch by PTCL.Its main data centre is in Germany. Every branch’s data is automatically transferred to main datacentre. They are also using fiber optic of NAYATEL for internet. In METRO WAN with thefiber optic access point a router is attached that interconnects two or more computers to transferpackets of data over a network.LINKMETRO is vendor of PTCL for providing fiber optics.
  • 8. Routers used in METRO Cash & CarryMetro use the Cisco routers for their organization. It is because of their standardized rule as wellas due to high quality and reliability.LANIn METRO CASH AND CARRY information is managed within a branch through a network.There are four main departments of within a branch which are interlinked through internet andwireless access point’s different routers are used to route the traffic on the desired place.Switches are used to connect different systems at one point all over the network is thenconnected to the database server.Operating SystemFor clients and servers they use XP.Cabling in METRO Cash and carryMETRO uses Siemens.IntranetDepartments’ connectivity is through intranet as they can’t suffer any communication problem.

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