1. 2012
BY:
Moezza Mir
[SUPPLY CHAIN MANAGMENT]

2. Metro Cash & Carry
Introduction
METRO Cash & Carry is the international leader in self-service wholesale which opened its first
outlet in Islamabad in Sector I-11/4, near the Railway Carriage Factory. After Lahore successful
experience METRO Cash and Carry opened its second outlet in Islamabad on April, 2008. The
new METRO Cash & Carry wholesale center offers more than 20,000 food and non food items
in Islamabad. More than 10,000 square meters of selling space in Islamabad outlets. METRO
severs 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 & Carry
In 1964 Prof. Dr Otto Beishem founded METRO SB-Großmärkte GmbH & Co. KG, the self
service wholesaler in Mülheim/Ruhr. In 1967 the Franz Haniel & Cie. company became a
partner in the new venture. Prof. Dr. Otto Beisheim, the Franz Haniel & Cie. GmbH company
and the Schmidt-Ruthenbeck family then each held one third of the shares in the German
METRO activities and thus constituted the “original group of partners”.
In 1968, the concept was extended beyond the German borders when the Dutch company
Steenkolen Handelsvereeniging N.V. (SHV) becomes a new partner. In 1972 the first major
expansion drives when METRO/MAKRO Cash & Carry entered the market of nine Western
European 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 Kaufhof
Holding 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 the
German blue-chip index “DAX 30“. The first outlet of METRO Cash & Carry in Asia was
opened in china in 1996. Today the company outlets are present in 5 countries of Asia that is
China, India, Japan, Pakistan and Vietnam. More than 80 % of the employees are working
outside the Germany. METRO Cash and Carry is trying to expand its operations in Asia as well
as Western Europe.
Vision of METRO Cash & Carry
METRO will dominate the cash and carry wholesale segment globally, through our unique
business formula which improves competitiveness of our customers all over the world.
Mission of METRO
METRO is a cash and carry wholesaler for businesses and professionals. METRO provides
quality 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 is
followed by a second opening in Islamabad on April 03, 2008. On January 14, 2009, METRO
Cash & 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.
Customers
METRO offers membership card to only commercial customers that will allow purchasing. The
core customers are small and medium-sized traders as well as hotel, restaurant and catering
businesses and other companies and institutions.
Management Information System:
The life blood of any organization is MIS. Information is considered as a power because it is
believe that nothing moves without information. Information is considered as an important
resource needed to develop other resources. In organization, MIS helps in achieving the
organizational objectives and in planning and controlling their processes and operations, help in
dealing with uncertainty and help in adapting to change or indeed initiating change.
Supply Chain Management
The goal of Supply Chain at METRO is to efficiently handle thousands of orders, shipments and
deliveries 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 producer's
suppliers. The extended supply chain includes customers’ customers and suppliers’ suppliers.
Supply chain management oversees and optimizes the processes of acquiring inputs from
suppliers (purchasing), converting those inputs into a finished product (production), and
delivering those products – or outputs - to customers (fulfillment).
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.

4. Cold Chain Management
The distribution of products that are temperature-sensitive is a huge challenge. Quality and
freshness can only be assured if the goods are constantly kept under a temperature controlled
environment, right from the time they leave the producer till they reach the customer.
Logistic department in METRO Cash and Carry
The whole system of MIS in METRO is automated and is centralized. METRO Cash and Carry
used Global Management System GMS to maintain huge data base.
Global Management System
A global management system provides the processes and tools required to ensure that
organizations and people can complete all tasks required to achieve their goals. Many
management systems help people work together within organizations, but a global management
system provides the processes and tools required for people to keep tasks synchronized within
and between organizations.
Simplified device management
GMS facilitates day-to-day administrative tasks across an entire distributed network. This
includes scheduled configuration backups, automatic software updates, and other vital device
management functions. In addition, GMS can be used to drill down into individual appliances for
specific configuration, monitoring, and management tasks.

6. Centralization of METRO Cash & Carry
Earlier all applications were received and processed at Head Office Level which added
difficulties for the customers as the processing took time too much. Now this process has been
decentralized by establishing HPBCs at various stations which is more effective.
Logistics Administrator
Floor Manager
Store Manager
Supervisor
Sales persons
Figure : 1 Logistics department Hierarchy of METRO
Logistics Administrator is the overall boss of the logistics department. He has every sort of order
generated through systems to the final receiving of goods. The Floor manager and the store
manager can make the order demand in system. After that the order demand is delivered to
supplier 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 manager
for the stock replacement. If stock is not available in the store the store manager has the authority
to generate order as well as to inform the floor manager to place an order in system.

7. sales person
supervisor
store manager floor manager
generating demand in system
Fiqure : 2 Process flow of logistic department of METRO
In METRO the sales person inform the supervisor about the deficiency of the goods. The
supervisor then forwards the request to store manager and the floor manager. Both can generate
the demand on systems. After all this process the data is send to the MIS department where they
generate a final order demand list using an GMS and after that demand list is send to different
suppliers.
Reports are formed on daily basis. In METRO ordering is of two types i.e. Head office ordering
and store ordering. In head office ordering the head office involves them in placing orders of
expensive products or goods because through this they keep their control over the demand. In
store ordering the floor manager or the store manager can generate the demand order.

8. Software used in METRO Cash and Carry:
Metro used Global Management System for the generating orders through systems. It basically
deals with financial affairs. Managerial level can also access it and head office can also access
the systems.
It is used as a tool in Metro IT department. It gives up to date information. Metro total
information is based on MIS e.g. operation, stock management etc
Reports are formed on daily basis.
Hardware’s of METRO Cash & Carry
Metro 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 that
the hard disk of particular model of HP would remain same in all computers of same model.
Disadvantages of HP Systems
HP 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.
WAN
Fiber optics
In Metro Cash and Carry Micro net broadband Nayatel is provided by PTCL. So there are using
a public link don’t have their own link. As in Pakistan there are three outlets of Metro they are
interconnected through fiber optics.
In METRO CASH & CARRY information is efficiently managed in WAN, there are different
branches of METRO in different cities of Pakistan. Every branch has its own local database
which connected to main database located in Germany. The internet connectivity is provided to
each branch by PTCL.
Its main data centre is in Germany. Every branch’s data is automatically transferred to main data
centre. They are also using fiber optic of NAYATEL for internet. In METRO WAN with the
fiber optic access point a router is attached that interconnects two or more computers to transfer
packets of data over a network.
LINK
METRO is vendor of PTCL for providing fiber optics.

9. Routers used in METRO Cash & Carry
Metro use the Cisco routers for their organization. It is because of their standardized rule as well
as due to high quality and reliability.
LAN
In 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 and
wireless 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 then
connected to the database server.
Operating System
For clients and servers they use XP.
Cabling in METRO Cash and carry
METRO uses Siemens.
Intranet
Departments’ connectivity is through intranet as they can’t suffer any communication problem.