SUPPLY CHAIN MANAGEMENT

Presentation On

Presented by :

DEFENDERS
M.Nabeel Shahzad Siddiqui Hammad Ahmed Haseeb Ali Khan Faizan Iqbal Saba Zuberi Nida Iqbal
Presented to: Sir. Sohail Majeed

INTRODUCTION
Makro is a renowned international brand in the business of Cash and Carry wholesale centers. Its originally present in Netherlands as a brand Makro. Makro is a joint venture with the House of Habib, under the name of Makro-Habib Pakistan Limited. There are 2 Centers in Karachi and 2 in Lahore.

INTRODUCTION
Wide range of food and non food items under one roof. Mission is excellent distribution of products with best price , quality and variety to customer.

They also provide free delivery on selected items.

PURCHASES
Reduced purchase cost. Standard products and cheap sales to the customers. It sells everyday products such as grocery general items outlets etc, Growth was broad-based across markets and categories. Grow volume share in two-thirds of its business. Ensure that prices stay competitive.

PURCHASES
Serve for consumers at all income levels. Emphasized on strengthening its relationship with its supplier. The prices varied from day to day Bargaining power. Offers high discount as compared to any other retailer. They earned good revenue in the form of higher volumes, low pricing.

PURCHASE PROCESS
Min. Qty WMS Procurement Dept Vendors

When the stock reaches to minimum quantity, a message is send to Warehouse Management System .

When the message is received as the stock reaches to minimum quantity. Then a message is forward to Procurement Dept.

Then Procurement Department generate a purchase order and send it to Vendor for stocks purchase.

When Vendor received the purchase order the start work to fulfill the order for Makro .

LOGISTICS
Makro cash and carry brings a new concept in Pakistan. It includes 1400 items include vegetables, fruit , fish, all types of meat, motorcycle etc. Makro make the half of the sales for individual customer. Average 200 employees are directly employed in outlet .

EXISTENCE OF THIRD PARTY LOGISTICS

They use third party logistics to satisfy their logistical business need.
Fast and convenient transportation system. In distribution centers they have trucks and other mini-load lifters. They also have there own transport for free deliver of goods to their customers to reduce cost. They have hired skilled drivers with no major traffic violations from their past Makro supervisor gives workers delegate authority for making decision on time.

LOGISTICS WITH IN FACTORY:

They use fork lifter, mini cars, palettes and etc in warehouse. They have wide parking space. Work is distributed among employees so that no body can interfere in others work. Makro done the special KPI (Key Performance Indicator).

SHIPMENTS TO INDIVIDUAL CUSTOMERS

Makro is not involved in shipment to individual customers

CROSS DOCKING
Reduce handle and storage cost.
Cross docking on perishable item.

Reduce lead time.

PULL STRATEGY
Cross docking changes their supply chain into the demand chain. Follow wal-marts strategy. focus on customers demand.

INVENTORY MANAGEMENT
INVENTORY KEEPING: Vertical inventory system Its saves space, time and costs Inventory Accounting FIFO Inventory System.

WAREHOUSEING
Makro selling centers used as warehouses.

It has two warehouses, the front store is for display where we shop and other is at back store where excess inventory is kept.
They use barcode as well as Radio Frequency Identification Device tags for its record keeping and safety from stealing. Dispatch timing for goods are between 9 a.m. to 5 p.m.

All the inventories are kept in the right condition, at the right specific department to ensure its best quality and display which attract buyers.

TECHNOLOGIES USED IN WAREHOUSE

MAKRO USE: Barcode and RFID for handling goods. Smart shelves . Transportation of goods is directly unload in the store room. If any supplier have no barcode, Makro will charge @50 paisa per good from supplier. The employees control the delivery via PC and with the PDAequipment .

WAREHOUSING
PDA EQUIPMENTS (Personal Digital Assistant) Foldable keyboards

Data collection, Temperature, Length measuring Devices.

USB: Modem

WEAKNESSES & SUGGESTION

Poor Choice of Main Center

Time waste of Suppliers at Goods Receiving Department

CONCLUSION