PROJECT PRESENTATION

PRODUCTION MANAGEMENT
Operational strategy of Multi-National Company in
Pakistan
(Metro Pakistan)

Muti ur Rehman Khan Lodhi

Arshad Hussain Mengal
Javed Gulab
 WHY METRO?
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.
COMPANY HISTORY
METRO CASH & CARRY
METRO CASH & CARYY
METRO CASH & CARRY
OUTSTANDING SUCCESS STORY
 TEN METRO CASH & CARRY
PRINCIPLES
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 IN PAKISTAN
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 companys country head office is also
based in Lahore and currently employs
over 400 people in two offices.
 METRO IN PAKISTAN
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 companys unique business model
offers potential for a decrease in market prices
and promotion of local goods and personnel.
 PRODUCT RANGE
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
 FOOD
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
 NON FOOD ITEMS
Office Equipment
Media, Radio & Accessories
Home Electronics / Household
Household Goods
Pots & Pans
Home Improvement/DIY
Home Decoration/Textile
Sports and Seasonal
 METRO OWN BRANDS
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.
 OPERATIONAL STRATEGIES
The distribution of operation of Metro
Cash & Carry is on the basis of: -

Logistics

Food Department

Non Food Department

 LOGISTICS
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.
 LOGISTICS (Contd)

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.
 LOGISTICS (Contd)

Cold Chain Management

Fruits & Vegetables
Live Fish
 FOOD DEPARTMENT
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.
 FOOD DEPARTMENT (Contd)

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.
 FOOD DEPARTMENT (Contd)

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.
 FOOD DEPARTMENT (Contd)

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.
 FOOD DEPARTMENT (Contd)

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.
 FOOD DEPARTMENT (Contd)

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.
 FOOD DEPARTMENT (Contd)

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
 REQUIREMENT FOR SUPPLIERS
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.
 REQUIREMENT FOR SUPPLIERS
(Contd)

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.
 REQUIREMENT FOR SUPPLIERS
(Contd)

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.
 REQUIREMENT FOR SUPPLIERS
(Contd)

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.
 NON FOOD DEPARTMENT
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.
 NON FOOD DEPARTMENT
(Contd)

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
 10 GOOD REASONS WHY SHOULD
BECOME A CUSTOMER OF METRO
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
 CUSTOMERS
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.
 CUSTOMERS
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.
THANKING YOU ALL