Metro Cash & Carry is a multi-national company that has invested 200 million Euros to open at least 10 wholesale stores across major cities in Pakistan. The company focuses on professional customers by offering one-stop shopping, efficient stores, advanced customer service, and strengthening local suppliers. Metro aims to decrease market prices and promote local goods and personnel through its business model and sustained investment in Pakistan. It ensures quality control and supply chain management for food and non-food products.

1. PRODUCTION MANAGEMENT
Operational strategy of Multi-National Company in Pakistan
(Metro Pakistan)
Muti ur Rehman Khan Lodhi
Arshad Hussain Mengal
Javed Gulab

2.  March 06 2009
 Five top foreign companies making huge
investment: National Assembly informed
 Details of investment made by foreign companies revealed
that the estimated cost of M/s METRO Cash & Carry would
be Euro 200 million for investment in trade/
services/consumer products. The company has planned to
open at least 10 Cash & Carry wholesales centres in all
major cities of Pakistan including Multan, Sialkot, Rawalpindi
and Gujranwala. Currently, two stores in Lahore and one
each in Karachi, Islamabad and Faisalabad are operational.
Their second store in Karachi will be opened soon, the
minister informed.

8. • The success of the company is based on the following principles:
 Focus on professional customers
 One-stop shopping
 Efficient store concept designed for professional needs
 Advanced customer service
 Enhanced customers’ competitiveness
 Excellence in supply chain and quality management
 Strengthening of local suppliers
 Development of national infrastructures
 Career opportunities
 Internationally transferable concept

9.  METRO Cash & Carry announced its
operations in Pakistan in January 2006. Since
then, it has established itself as a potential
market leader in wholesale.
 METRO Cash & Carry Pakistan has opened
its first store in the city of Lahore in October
2007.
 The company’s country head office is also
based in Lahore and currently employs over
400 people in two offices.

10.  The company donated €100 000 in January 2006
towards President's Earthquake Relief Fund. It
also has plans to fund development activities in the
country in association with the German Investment
and Development Company.
 METRO Cash & Carry plans to invest in Pakistan
on a sustained and reliable basis in the years to
come. The company’s unique business model
offers potential for a decrease in market prices and
promotion of local goods and personnel.

11. Each store is tailored to address the needs
of professional customers. We offer a
wholesale price that leaves the customer
room for healthy margins and provide a
one-stop-shop for the customer.
• Food
• Non Food
• Own brands

12.  Dairy, frozen
 Meat
• Mutton
• Beef
• Chicken
 Fresh Fish & Seafood
 Fruits & Vegetables
 Canned Good & Bakery
 Sweets and Confectionary
 Tobacco and Beverages
 Detergents
 Cosmetics, soap and shampoo etc

13.  Office Equipment
 Media, Radio & Accessories
 Home Electronics / Household
 Household Goods
 Pots & Pans
 Home Improvement/DIY
 Home Decoration/Textile
 Sports and Seasonal

14.  In several food and non-food product
categories METRO Cash & Carry offers a
wide range of its own brands. These
brands are highly popular across the
globe.
The availability of these brands allow
customers to save money without
compromising on the quality for which we
are famous and feel proud of it.

15. The distribution of operation of Metro Cash
& Carry is on the basis of: -
Logistics
Food Department
Non Food Department

16.  Supply Chain Goal
• Supply Chain
Management plays an
important role in our high-
performance logistics
system and enhances our
capacity to supply food
and non-food products on
a daily basis with
consistent high
quality, diversity and
freshness.

17.  Cold Chain Management
• At METRO Cash & Carry Pakistan, the
warehousing and transport for frozen and chilled
products is ensured at a constant temperature (in
minus or plus degrees), according to product
requirement. Temperature monitoring is done
manually and by computerized mechanisms, both
during transportation truck and in cold storage.

18.  Cold Chain Management
• Fruits & Vegetables
• Live Fish

19.  Fresh
• Freshness of food products is checked on a daily
basis to make sure that no product is left on the shelf
that does not fulfill standard requirements of quality
and freshness.
• Ultra fresh products such as meat, fish, fruits and
vegetables require special attention because of their
delicacy and sensitivity. These products are presented
with guaranteed freshness while maintaining the
natural texture and flavour of the products through
strict inspections and controlled temperatures.

20.  Dry Food
• The Dry Food department comprises edible
grocery, canned goods, beverages, sweets,
confectionery.
• Special attention is given to the storage of high
quality grocery items such as rice, pulses, lentils,
spices, etc., to maintain their colour, texture, and
aroma. A separate area has been designated for
spices and nuts for the ease and comfort of
customers.

21. • Imported canned goods containing meat and
derivatives are very vigilantly selected, keeping in
view that imported meat products are purchased
only from Halal-certified companies audited by the
recognized Halal certification bodies of their
respective countries. We also maintain a list of
Recognized Halal Certification Bodies of different
countries and ask the supplier to send us a copy
of their Halal certificate for verification.

22. • Our In-store bakery is one of its kind. All
recipes, cooking temperatures and time are pre-
defined. Proper preparation control is done
through fully mechanized plants. The hygiene and
sanitation standards are fully complied too and our
staff is trained to fulfill such requirements.

23.  Hygiene & Sanitation
• We are extra cautious about the hygiene and
sanitation conditions to be ensured by our suppliers
especially for fresh food items.
• Not only that we ask our suppliers to follow the quality
standards, we also apply strict hygiene and sanitation
requirements in the day-to-day operations of our
stores.
• We only buy products that are hygienically prepared
and properly handled at source by suppliers. We
ensure that sanitation measures are a key part of their
production and processing procedures.

24.  Cold Chain
• A cold chain is a temperature-controlled supply
chain. Correct temperature controls are imperative
to keep fresh food products in their original form
till their shelf life.
• Inside the Metro centre, the cold storages and
selling areas are well-equipped to maintain the
temperatures as required by each fresh product.

25.  HACCP
 The HACCP process consists of seven principles:-
• Hazard Analysis
• Identifying Critical Control Points (CCP)
• Establishing Critical Limits for each (CCP)
• Monitoring CCP requirements and using the data
gathered to effectively control processes
• Record Keeping
• Verification

26. Metro applies strict Quality Assurance
controls over its suppliers of fresh food
products which include meat and meat
products, fish and fish
products, fruits, vegetables and their
products like salads and packaged food.

27.  The suppliers of meat, fish and their products are
required to assure Quality Assurance department of
Metro that they are fulfilling basic requirements of
hygiene, sanitation and Good Manufacturing Practices.
QA department pay surprise and regular visits to
slaughter house(s) and processing unit(s) of fish to
check their operations. In case of any
nonconformity, the QA department may reject the
whole lot ensuring that only the healthy and hygiene
products find their place in the Metro stores. QA
department has also engaged third party inspection
bodies to check the operations of meat and fish
suppliers and submit report to QA department for
follow up.

28.  Suppliers also have to ensure that they shall
abide by all temperature control protocols as
defined by Metro, not only during production
but also during transportation to Metro stores.
 QA department has also engaged recognized
and highly reputable testing laboratories for
testing the food products and samples are
collected regularly from the production as well
as from the Metro stores and are tested to
check whether they are “fit for consumption”.

29. Suppliers of Metro have to implement the
HACCP requirements in their whole
production process and Metro encourages
those potential suppliers who are HACCP
certified and maintain their systems
ethically and professionally.

30.  Quality
• We only select companies and
products that fulfill basic quality
requirements as defined and
recognized by METRO.
Product
quality, durability, commitment
and professionalism are the
main driving force of our
business.

31.  Warranty & Guarantee
• METRO takes full responsibility
for product warranties and
guarantees, subject to certain
terms and conditions depending
on the type and condition of the
product at the time it is received.
 After Sales Service
• We provide after sales service
for certain electrical and
electronic products as per the
terms and conditions

32.  Lowest possible prices
 Stock availability
 One-stop shop
 Extensive business hours
 Quality guarantee
 Free parking
 After sales services
 Promotional activities
 Simple but comprehensive billing system
 Great value for money

33. Only commercial customers are allowed to
purchase at METRO Cash & Carry. All
customers are registered and provided
with a customer card.
Our core customers are small and
medium-sized traders as well as
hotel, restaurant and catering businesses
and other companies and institutions.

34.  METRO Cash & Carry distribution network
promises much greater efficiency than the
multilayered supply chain.
 They can purchase goods more flexibly and
at more favorable prices, compared to
traditional procurement sources.
 This enables METRO Cash & Carry to
strengthen the competitiveness of its
professional customers.