Professional Documents
Culture Documents
Project Report
A study on the
Supply chain management & Logistics in
Customer Delivery Services
Of
METRO Cash & Carry ltd
Bhandup DC 20
(June-August 2014)
Submitted By
Ajay Dilip Mulye.
Roll No. 1007
As part of the
INDEX
SR.NO
PARTICULARS
PAGE NO
Acknowledgement
Declaration
Executive Summery
Company Profile
20
Research Methodology
25
26
Finding
33
10
Conclusion
34
11
Recommendation
35
12
Bibliography
36
Annexure
37
Acknowledgement
Declaration
I, Ajay Dilip Mulye pursuing Master of Management Studies (MMS) in Mumbai Institute of
Management & Research (MIMR) hereby declare that I have successfully completed this
project entitled A study on the Supply chain management & Logistics in Customer Delivery
Services Of METRO Cash & Carry ltd, Bhandup DC 20 in the academic year 2014-15.
The information incorporated in this project report is true, authentic and original to the best of
my knowledge.
(Ajay D. Mulye)
1007
Executive Summary
The project reported title as Supply chain management & Logistics in Customer Delivery
Services was undertaken at METRO Cash & Carry, (Bhandup) Mumbai.
This project deals with the supply chain management & logistics in customer delivery service
of organization study conducted in METRO Cash &Carry, (Bhandup) Mumbai. The first
store for Metro Cash and Carry India in Mumbai was opened in 2008. The Store is within 15
minutes driving distance from any business district and serves over 50,000 businesses across
the city. It has more than 18000 articles.
The main objective of this study was to identify the issue of customer delivery services of the
organization and also problem faced by customer in delivery.
Objective
The objective of every logistics & delivery service is to full fill the expectation of the
customer.
These customer expectations define the purpose of a logistics systemit ensures that the
right goods, in the right quantities, in the right condition, are delivered to the right place, at
the right time, for the right cost.
a. Identify logistics & delivery service problem at workplace.
b. Find out the issue of the customer faced at time of delivery of product/ article.
c. Solve moderate version of these problems on spreadsheet
Minor objective
a. To evaluate study for the supply chain management & logistics in customer delivery
service of METRO Cash & Carry, (Bhandup).
b. To study the overall objective of customer delivery service
c. To study the compares between the delivery service of METRO Cash & Carry &
other competitor.
Introduction
METRO Cash & Carry is the leading international player in the selfservice wholesale sector. Under the brands METRO and MAKRO it
operates over 750 wholesale stores in 28 countries throughout
Europe and Asia.
The wholesale stores offer a broad range of products and services
customized to the specific demands of professional customers, such
as hotel and restaurant operators, catering firms, independent small
retailers, institutions and offices.
ABOUT METRO
Partner for professional customers
With over 750 stores in 28 countries, METRO Cash & Carry is the international leading selfservice wholesale operator with sales of about 32 billion in the financial year 2012/2013.
Everyday about 110,000 dedicated employees around the world
serve over 21 million professional customers such as hotel and
restaurant operators, catering and hospitality firms, independent
small retailers, institutions and offices. A comprehensive
assortment of up to 20,000 food items and up to 30,000 non-food
articles provides customers with a unique one-stop shopping
experience. The company is particularly reputed for its strong
competence in fresh products.
Its professional customers benefit from the broad assortment comprising both products of
renowned producers and well-tailored private label ranges at attractive prices. The innovative
services such as delivery and consulting for small retail shops give customers a great deal of
added value and competitiveness.
Clear customer orientation, proven competence in assortment and services as well as strong
corporate social responsibility and entrepreneurial spirit position METRO Cash &
Carry distinctively as a reliable partner for professionals.
BUSINESS CONCEPT
A modern wholesale distribution model for professionals
METRO Cash & Carry was established on a distinctive business
concept when the first store opened its doors to German
businesses in 1964: instead of placing orders through multiple
vendors or visiting different locations to buy items separately,
business professionals selected their purchases directly under one
roof at a store in Mlheim an der Ruhr, Germany, and took those
goods with them. Today, about 110,000 employees of the
company in 28 countries serve over 21 million professional
customers, such as hotel and restaurant owners, catering firms, independent small retailers,
institutions and offices. A comprehensive assortment of up to 50,000 food and non-food
articles provides customers with a one-stop shopping experience.
The wholesale company offers products of renowned brands as well as exclusive own-brand
product ranges at attractive prices. To effectively meet local needs, up to 90 percent of the
products at METRO Cash & Carry stores are sourced from domestic producers and
suppliers.
importance to customer orientation by not only constantly tailoring the assortment but
diversifying sales channels and value-added services.
In 28 countries METRO Cash & Carry is committed to being a strong and distinguished
partner of local communities, a responsible corporate citizen and an employee of choice. Its
outstanding knowledge in supply chain and proven expertise proudly contribute to the
development of the local trade infrastructure.
CORPORATE CULTURE
More value for the customer as an international player
Customer focus certainly takes center stage in
METRO Cash & Carry's corporate culture. Creating
more value for the customer is the core mission
undertaken by us and driving the decisions we make.
The company truly believes that the corporate
success can't be achieved nor sustained without
harmonious interaction between its business and
employees, the environment and the community at large. It encourages employees to strive
for excellence through individual growth as well as teamwork.
As an international company present in 28 countries, METRO Cash & Carry advocates multiculture, diversity, respect and inclusiveness. Employees and the company benefit from the
inter-cultural exchange to inspire for innovation and growth.
BUSINESS
Modern self-service wholesale for professionals
Today, about 110,000 employees of METRO Cash & Carry in 28
countries serve over 21 million professional customers, including hotel
and restaurant owners, catering firms, independent retailers, service
providers and public institutions. The wholesale company offers
products of renowned producers as well as exclusive private-label
ranges with attractive prices. Customers are able to choose from an
assortment of up to 20,000 food and up to 30,000 nonfood products
under one roof in the wholesale market.
Innovative services and professional consulting offer its customers extensive added
value. METRO Cash & Carry is particularly known for its proven competence in fresh food
products and quality assurance. Moreover, the assortment and services - from delivery to
ready-made business solutions such as small trader support program - are excellent in their
diversity, quality and excellent price-benefit ratio.
ASSORTMENT
A broad and customised assortment under one roof
Professional customers are offered a wide assortment
consisting of up to 20,000 food products and up to 30,000
nonfood items under one roof as the wholesale company
prides itself in providing unique one-stop shopping
experience for the professionals. Wide ranges of articles,
with particular focus on fresh produce, are always
safeguarded by stringent and uncompromising quality compliance throughout the entire
supply chain and presented in professional-customized packaging and sufficient stock.
Up to 90% of the goods in the wholesale markets are sourced from domestic producers and
suppliers, a distinctive practice widely adopted by the company to satisfy the specific local
needs of the customer. Close cooperation with local production also benefits the supply chain
development particularly in the emerging markets.
QUALITY
Top quality - An integral part of the corporate character
METRO Cash & Carry sees quality assurance as one of
the business priorities in its operations. The company's
outstanding track record in quality helps make the
wholesaler a trustworthy and preferred business partner
for its professional customers.
The strong confidence in excellent quality is sustained
through the consistent implementation of advanced quality standards such as Hazard Analysis
and Critical Control Point (HACCP) that safeguard every step of the supply chain. As a
wholesaler trading a large volume of fresh produce on daily basis, an uninterrupted cold
chain is of the utmost importance and thus is maintained with temperature-controlled
transport vehicles and storage facilities.
The stringent quality control is also widely exercised by the wholesaler in its cooperation
with suppliers whose products and production processes are required to meet specific criteria
defined by a wide range of globally applicable regulations and inspection systems such as
GLOBAL G.A.P. and International Food Standard (IFS). In some emerging markets the
company invests substantially to organize a series of training seminars to transfer food safety
know-how to the local producers. Innovations like traceability are tested and implemented in
partnership with designated agricultural suppliers.
SERVICE
Tailored business solutions for the professionals
METRO Cash & Carry's customer focus goes beyond product
assortment to a range of value-added business solutions tailored
to the specific needs of each customer group. The vast
commercial expertise possessed by and strong comprehension of
customers evolving demands enables the company to develop a
range of ready-to-use services to help the professionals meet the
challenges and grow competitiveness.
METRO Cash & Carry strives to extend and intensify its
customer approach beyond the sales floor through a dedicated task force who visits customers
on their premises regularly. It helps the wholesale company better understand the customers
day-to-day business to come up with more targeted, effective and up-to-date solutions.
HISTORY
Success of more than 40 years
1964
The first METRO Cash & Carry wholesale store opens in Mlheim/Ruhr, Germany.
1968
The company signs a partnership with the Dutch Steenkolen Handelsvereeniging to take the
first step abroad opening the first store in the Netherlands under the brand MAKRO.
1970 -1972
METRO Cash & Carry starts self-service wholesale operations in Belgium, Great Britain,
France, Austria, Denmark, Spain and Italy.
1984
20 years after its founding, METRO Cash & Carry already operates more than 100 wholesale
stores all over Europe.
1990 -1992
METRO Cash & Carry enters Turkey, Portugal and Greece.
1994
METRO Cash & Carry is one of the first international trade groups to enter Eastern Europe.
The wholesaler opens stores in Hungary and Poland.
1996
With the first opening in Shanghai, METRO Cash & Carry completes market entry into
China.
1996 2000
METRO Cash & Carry expands fast in East Europe by entering Romania, the Czech
Republic, Bulgaria and Slovakia.
2001
METRO Cash & Carry starts business in two stores in Russia.
2002 -2003
The Company keeps an eye on the Asian markets: The first stores Japan, Vietnam and India
are opened.
2003
Metro Cash & Carry enters Ukraine and India.
2004
The 40th anniversary sees the company operating over 500 wholesale stores in 27 countries.
2007 2010
METRO Cash & Carry keeps expansion with market entry into Pakistan, Kazakhstan and
Egypt.
2009
METRO Cash & Carry renews its commitment to excellent customer services under the
claim "Partner for Professionals". Innovative services like delivery starts being implemented
in Germany and other countries. Its private label portfolio is further optimised and relaunched with six core brands to target respective customer groups.
2010
New store formats tailored to local customer demands and market conditions are developed
and implemented in several countries such as city centre stores in Paris or Shanghai.
2011
METRO Cash & Carry celebrates the 700th store of its international network. E-Commerce is
launched in a few countries.
Own Brands
METRO Cash & Carry's own brands are targeted towards offering customers an attractive
assortment of high quality products to suit their respective needs at an excellent price. The
own brand products have been developed in close collaboration with customers and suppliers
and are the result of thorough market analyses. The brand offer ranges from the entry-level
price segment through to the quality and premium segments with the corresponding food and
non-food products.
METRO Cash & Carry opened its first wholesale centre in the country in 2003 at Bangalore.
With this, METRO introduced the concept of Cash & Carry in India. Since then METRO has
opened one more centre in Bangalore, two in Hyderabad, and two in Mumbai and one each in
Kolkata, Ludhiana, Delhi, Jaipur, Vijayawada, Amritsar, Zirakpur, and Jalandhar&Indore.
These centres offer the benefit of quality products at the best wholesale prices.
India is a key market in the companys global expansion strategy. With modern trade on the
threshold of exponential growth in India, METRO is poised to extend its presence in existing
markets by further deepening its network of customers and suppliers. The company will also
expand its footprint into newer markets within the country bringing these markets the benefit
of its unique wholesale concept.
The METRO Concept:
Customers are registered and need a customer card to enter the premises
The customer picks merchandise, pays and transports the goods or uses our transportation
services
Short Facts
The core of the METRO value proposition lies in the unique range of benefits offered by our
distribution centres:
Over 10,000 products in a single location means you never need to deal with multiple
suppliers
No more leafing through catalogues just walk through our centre and pick what you need
Trained floor staff will help you find exactly what you need
A range of discounts and promotions to help you get more value for your money
Introduction
Logistics is unique & never stops! Logistics is happening around the globe, twenty-four hours
of every day, seven days a week during fifty two weeks a year. Logistics is concerned with
getting products & services where they needed when they are desired. However,
implementing best practice of logistics has become one of the most exciting and challenging
operational areas of business.
Logistics involves the integration of information, transportation, inventory, warehousing,
material handling & packaging. Logistics adds value when inventory is correctly positioned
to facilate sales. Thus far it is has been established that the logistics of an enterprise is an
integrated effort aimed at helping create customer value at the lowest total cost. At a strategic
level, logistics managers seek to achieve a previously agreed upon quality of customer
service through state of the art operating competency.
Good service delivery is reliant on insight into the organizations internal process. Effective
and efficient internal processes have direct impact on the quality of service delivery, the
value of products and services, and the cost effectiveness of an organizations day-to-day
operations. Measurement of an organizations internal processes should be driven largely by
the QMS used, and the key processes defined therein
Delivery solution is the service offered in the store to selected HoReCa (Hotels, Restaurants,
Caterers) and services, companies and offices customers.
As if having access to your own one-stop warehouse wasnt convenience enough, METRO
offers you a variety of delivery and logistics solutions. Combining speed, reliability and
reasonable rates, these solutions are another way in which METRO strives to become your
partner in business success.
Bulk Delivery
Research Methodology
Limitations
a) The tenure during the research study was limited.
b) Due to time & budget constraints, sample size was limited to for survey
Jan
778
Feb
612
Mar
612
Apr
638
May
715
Jun
658
Jul
704
Key Account
299
601
460
367
244
280
340
Total Trader
622
784
1086
745
365
620
843
Horreca
Key Account
Total Trader
METRO Cash & Carry Bhandup store done good business in wholesale market by delivery
product/ article to the customer since more than six year in Mumbai and near area of it.
Delivery of good is most critical task in all the sectors.
As per the data Horeca the customers are decreasing as compared to January 778 customer
billing is done but in July 704 customer billing. Key account customers have increased from
month of January 299 customer billing and 340 customer billing in month of July 340. Trader
has also increase from the month of January 622 billing and in the month of July 843
customer billing.
But as per data company is lost their most of valuable customers.
2) This question asked for the customer satisfaction from the customer delivery service.
No
32%
Yes
44%
Yes
Partially
No
Partially
24%
Out of the 25 Horeca the 44% customers said that they were satisfied with the customer
delivery. 24% were partially satisfied with the customer delivery service. 32% customers said
that they were not satisfied with the customer delivery service. Most of customers are
unhappy because of they dont get their delivery on time.
3) This question is asked for the how long does the delivery take after the order has been
placed.
1, 4%
3, 12%
12 hr.
1 Day
6, 24%
2 Day
13, 52%
2, 8%
In this the customer were asked how much time does the delivery of goods after the order
take after it is given to the company. Here four percent customer said that they get delivery in
twelve hours, fifty-two customers said they get delivery in one day. Eight percent customers
said that they get delivery in two days, twenty-four percent customers said that more than two
days take place for delivery of article after the order given and twelve percent customers said
that delivery is done as per the delivery day schedule as per area.
4) This question asked for the service of the delivery solution. The survey result was
interpreted as follows
20
18
16
14
12
10
8
6
4
2
0
18
15
13
13
11
10
10
8
5
0 2
Arrive at time
8
6
4
Complete &
accurate
Never
6
2 3
2 2 2
Rarely
Sometimes
5
2 1 0
Articles
properly
handled &
stored
Frequently
2 1 1
1 0 1
Always
In this first point was Delivery of article is arrive at time. To this eight customer said that
delivery always arrive at time, ten customer said that it is frequently arrive at time, two
customer said that sometimes it delivery arrive at time. And most important five customer
said that delivery never arrive at time.
Second question was delivery is complete & accurate to this response of customer is four
customer said that is always complete & accurate, eight customer said that it frequently
complete & accurate. Seven customer said that sometimes delivery arrive complete &
accurate, & six customer said that it is never arrive at complete & accurate.
Third question was delivery good are clearly marked for identified the product / article. In
this one customer said that it is always clearly marked, thirteen customer said that frequently
it is clearly marked, three customer said that sometimes it is marked on the delivery to
identify the article. And two customer said that is rarely marked & six customer said that
there have never clearly marked to identify the product.
Fourth question was asked for product arrive in good condition to the customer. For this
thirteen customer said that it is always arrive in good condition, six customer said that it is
frequently arrive in good condition, and two customer response for never arrive in good
condition, two customer for rarely arrive in good condition & two customer for sometimes
arrive in good condition.
Fifth question was all articles properly handled & stored during the delivery. In fifteen
customer said that it is always properly handled & stored during the delivery, seven customer
said that it is frequently articles are properly handled & stored during the delivery. For rarely
article properly handled & stored one customer was response and never article properly
handled & stored for two customer responded.
Sixth question was packaging of article is safe & secure in delivery for protect the article. For
this question eleven customer said that packaging is always safe & secure for article, ten
customer said that packaging is frequently safe & secure, one, one & two customer said that
packaging are sometimes safe & secure, packaging is rarely safe & secure and packaging is
never safe & secure in the delivery respectively.
Seventh question was vehicle of delivery is neat & clean. For this question five customer said
that it is always clean & neat, eighteen customer said that is frequently vehicle is neat &
clean.
5) This question is asked for the problems faced to the customer from the customer delivery
services. The result of survey is explained below:-
19
18
17
16
12
7
5
44
7
5
55
2
22
0
Article not
Excess
Less
available stock send quantity of
product
send
Never
Rarely
Wrong
article
33
11
Incorrect
billing
Sometimes
44
2
0
Damage
article
Frequently
Always
In this first question was on article not available in the store which is ordered by customer.
For this two customer said that always article available in the store, three customer said that
rarely article not available in the store, eight customer said that sometimes the article not
available in the store. Seven customer said that it is frequently article not available in the
store & five customer said that it is always article not available in the store which required.
Second question was excess article stock send to the customer. For this seventeen customer
said that they never got excess stock of article, three customer said that rarely they got excess
stock of article, two customer said that sometimes they got excess stock of article. And three
customer said that they frequently got excess stock of article.
Third question was less quantity of product/article send to the customer. For this out of
twenty-five customer twelve customer said that they never got any less quantity of articles in
delivery, three customer said that they rarely got the less quantity of article in delivery, four
customer said that they sometimes got less quantity of delivery. Four customer said that they
frequently got less quantity of articles and two customer said that they always got less
quantity of articles in delivery.
Fourth question was wrong article send to customer in delivery. In this survey seven
customer said that they never got wrong article, five customer said that they rarely got the
wrong article, six customer said that they sometimes got wrong article, five customer said
that they frequently got wrong article. And two customer said that they always got wrong
article.
Fifth question was incorrect billing done by company to the customer. In this nineteen
customer said that company never done incorrect billing, two customer said that company
rarely done wrong billing, and another two customer said that sometimes company done
wrong billing. And one customer said that company done frequently wrong billing and other
one customer said that company always done incorrect billing.
Sixth question was any damage article send by the company to the customer. In this sixteen
customer said that they never got damage article, three customer said that they rarely got
damage article and another three customer sometimes got damage article. One customer said
that they frequently got damage article and two customer said that they always got the
damage article.
Seventh question was near expiry or expired product send by the company to customer. In
this eighteen customer said that the company never send near expiry or expired article, three
customer said they rarely got the near expiry or expired article. Two customer said that they
sometime got near expiry or expired articles and two customer said that they always got near
expiry or expired articles.
Eight question was delivery of article late send to customer. In this five customer said that
they never got delivery of article late, other five customer said that they rarely got delivery of
article late. Four customer said that they sometimes got delivery of article late and other four
customer said that they frequently got delivery of article late. And remaining seven customer
said that they always got delivery of article late.
Other problems faced by customer are as follows:1. Lack of communication between staff & customer.
2. Customer dont get information about the product available in the store.
3. Customer dont get inform about the problem of their delivery for example customer
demanded product not available.
Findings
Following is the issue which found by me from the survey:a) Delivery not reached to customer when promised
b) Delivery of order is not complete & accurate
c) Most of time article/product not available in the store.
d) Delivery of article send late.
e) Wrong article/product send to customer.
Conclusion
From the survey and training in cash on delivery team I am find some loop holes in the
services. They are as follows
a) Lack of planning & scheduling of delivery.
b) Lack of co-ordination between COD team and other team.
c) Inventory of article is not available.
d) Communication staff & customer is absent.
e) All article is not assemble at time of delivery this make direct effect on loading of
vehicle late.
This issue is barrier for providing good delivery service to the customer.
Recommendation
Bibliography
1. Retail logistics: changes and challenges - John Fernie and Leigh Sparks
2. Strategic Analysis For: WALMART - Laura Wei
3. LOGISTICAL MANAGEMENT (The Integrated Supply Chain Process) Donald
Bowersox & David Closs
4. METRO Cash & Carry Ltd website
Annexures
Partially
No
1 day
2 days
ASaMt:
nahI
1 idna
2 idna
8.
Thank you!