PRODUCTION MANAGEMENTOperational strategy of Multi-National Company in Pakistan(Metro Pakistan)Muti ur Rehman Khan LodhiArshad Hussain MengalJaved Gulab
March 06 2009 Five top foreign companies making hugeinvestment: National Assembly informed Details of investment made by foreign companies revealedthat the estimated cost of M/s METRO Cash & Carry wouldbe Euro 200 million for investment in trade/services/consumer products. The company has planned toopen at least 10 Cash & Carry wholesales centres in allmajor cities of Pakistan including Multan, Sialkot, Rawalpindiand Gujranwala. Currently, two stores in Lahore and oneeach in Karachi, Islamabad and Faisalabad are operational.Their second store in Karachi will be opened soon, theminister informed.
• 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
METRO Cash & Carry announced itsoperations in Pakistan in January 2006. Sincethen, it has established itself as a potentialmarket leader in wholesale. METRO Cash & Carry Pakistan has openedits first store in the city of Lahore in October2007. The company’s country head office is alsobased in Lahore and currently employs over400 people in two offices.
The company donated €100 000 in January 2006towards Presidents Earthquake Relief Fund. Italso has plans to fund development activities in thecountry in association with the German Investmentand Development Company. METRO Cash & Carry plans to invest in Pakistanon a sustained and reliable basis in the years tocome. The company’s unique business modeloffers potential for a decrease in market prices andpromotion of local goods and personnel.
Each store is tailored to address the needsof professional customers. We offer awholesale price that leaves the customerroom for healthy margins and provide aone-stop-shop for the customer.• Food• Non Food• Own brands
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
Office Equipment Media, Radio & Accessories Home Electronics / Household Household Goods Pots & Pans Home Improvement/DIY Home Decoration/Textile Sports and Seasonal
In several food and non-food productcategories METRO Cash & Carry offers awide range of its own brands. Thesebrands are highly popular across theglobe.The availability of these brands allowcustomers to save money withoutcompromising on the quality for which weare famous and feel proud of it.
The distribution of operation of Metro Cash& Carry is on the basis of: -LogisticsFood DepartmentNon Food Department
Supply Chain Goal• Supply ChainManagement plays animportant role in our high-performance logisticssystem and enhances ourcapacity to supply foodand non-food products ona daily basis withconsistent highquality, diversity andfreshness.
Cold Chain Management• At METRO Cash & Carry Pakistan, thewarehousing and transport for frozen and chilledproducts is ensured at a constant temperature (inminus or plus degrees), according to productrequirement. Temperature monitoring is donemanually and by computerized mechanisms, bothduring transportation truck and in cold storage.
Cold Chain Management• Fruits & Vegetables• Live Fish
Fresh• Freshness of food products is checked on a dailybasis to make sure that no product is left on the shelfthat does not fulfill standard requirements of qualityand freshness.• Ultra fresh products such as meat, fish, fruits andvegetables require special attention because of theirdelicacy and sensitivity. These products are presentedwith guaranteed freshness while maintaining thenatural texture and flavour of the products throughstrict inspections and controlled temperatures.
Dry Food• The Dry Food department comprises ediblegrocery, canned goods, beverages, sweets,confectionery.• Special attention is given to the storage of highquality grocery items such as rice, pulses, lentils,spices, etc., to maintain their colour, texture, andaroma. A separate area has been designated forspices and nuts for the ease and comfort ofcustomers.
• Imported canned goods containing meat andderivatives are very vigilantly selected, keeping inview that imported meat products are purchasedonly from Halal-certified companies audited by therecognized Halal certification bodies of theirrespective countries. We also maintain a list ofRecognized Halal Certification Bodies of differentcountries and ask the supplier to send us a copyof their Halal certificate for verification.
• Our In-store bakery is one of its kind. Allrecipes, cooking temperatures and time are pre-defined. Proper preparation control is donethrough fully mechanized plants. The hygiene andsanitation standards are fully complied too and ourstaff is trained to fulfill such requirements.
Hygiene & Sanitation• We are extra cautious about the hygiene andsanitation conditions to be ensured by our suppliersespecially for fresh food items.• Not only that we ask our suppliers to follow the qualitystandards, we also apply strict hygiene and sanitationrequirements in the day-to-day operations of ourstores.• We only buy products that are hygienically preparedand properly handled at source by suppliers. Weensure that sanitation measures are a key part of theirproduction and processing procedures.
Cold Chain• A cold chain is a temperature-controlled supplychain. Correct temperature controls are imperativeto keep fresh food products in their original formtill their shelf life.• Inside the Metro centre, the cold storages andselling areas are well-equipped to maintain thetemperatures as required by each fresh product.
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 datagathered to effectively control processes• Record Keeping• Verification
Metro applies strict Quality Assurancecontrols over its suppliers of fresh foodproducts which include meat and meatproducts, fish and fishproducts, fruits, vegetables and theirproducts like salads and packaged food.
The suppliers of meat, fish and their products arerequired to assure Quality Assurance department ofMetro that they are fulfilling basic requirements ofhygiene, sanitation and Good Manufacturing Practices.QA department pay surprise and regular visits toslaughter house(s) and processing unit(s) of fish tocheck their operations. In case of anynonconformity, the QA department may reject thewhole lot ensuring that only the healthy and hygieneproducts find their place in the Metro stores. QAdepartment has also engaged third party inspectionbodies to check the operations of meat and fishsuppliers and submit report to QA department forfollow up.
Suppliers also have to ensure that they shallabide by all temperature control protocols asdefined by Metro, not only during productionbut also during transportation to Metro stores. QA department has also engaged recognizedand highly reputable testing laboratories fortesting the food products and samples arecollected regularly from the production as wellas from the Metro stores and are tested tocheck whether they are “fit for consumption”.
Suppliers of Metro have to implement theHACCP requirements in their wholeproduction process and Metro encouragesthose potential suppliers who are HACCPcertified and maintain their systemsethically and professionally.
Quality• We only select companies andproducts that fulfill basic qualityrequirements as defined andrecognized by METRO.Productquality, durability, commitmentand professionalism are themain driving force of ourbusiness.
Warranty & Guarantee• METRO takes full responsibilityfor product warranties andguarantees, subject to certainterms and conditions dependingon the type and condition of theproduct at the time it is received. After Sales Service• We provide after sales servicefor certain electrical andelectronic products as per theterms and conditions
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
Only commercial customers are allowed topurchase at METRO Cash & Carry. Allcustomers are registered and providedwith a customer card.Our core customers are small andmedium-sized traders as well ashotel, restaurant and catering businessesand other companies and institutions.
METRO Cash & Carry distribution networkpromises much greater efficiency than themultilayered supply chain. They can purchase goods more flexibly andat more favorable prices, compared totraditional procurement sources. This enables METRO Cash & Carry tostrengthen the competitiveness of itsprofessional customers.