Lahore School of Economics

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Supply Chain Management

Mr. Nadeem Rehmani, Director Operations - METRO Cash & Carry, was invited to the Lahore School of Economics to deliver a lecture on “Supply Chain Management” to the graduating MBA class on June 12, 2014.

METRO group is a $44 billion company which is based in Germany and has managed to achieve this status in only 7 years. Its components include ‘Self-serving Stores’, ‘Consumer Electronic Stores’, ‘Hyperstar’ and ‘Department Stores’. Currently METRO is a part of the 50th largest fortune companies in the world. METRO is the 4th largest FMCG Company in Pakistan after Nestle, PepsiCo and Unilever.

In 2012, METRO took over the operations of MACRO through merging with it and it was a no cash transaction. METRO is cash & carry wholesale and not a supermarket and its 65%-68% clientage are the professional customers which include Horeca such as hotels, fast food retailers, bars & clubs, Traders such as Generalist food, petrol stations, Institutions such as industries, universities, and Services such as health care, wellness, and physical services.

Mr. Rehmani told the students on how METRO preferred having one-on-one relationships with its professional customers. He talked about the Classic Stores, Junior Stores, and ECO Stores. He talked about METRO’s supply chain management system. He gave examples to support his claim.

The supply chain of METRO focused on 4 things:
  1. Lower Inventories e.g. buying on credit 
  2. Lower Processing Costs
  3. Faster Reaction to Market
  4. Increased Availability

He talked about the 3 types of flows that were part of the supply chain. They were Material Flows, Information Flows, and Financial Flows. He gave examples of Amazon; how it installed sensors in refrigerators and tried to meet the demand of the consumers. At the end, he mentioned that METRO used a “Cold Chain Technology” where it catered to a controlled supply chain.


posted by S A J Shirazi @ 6/25/2014 11:18:00 AM,

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