Copyright © 2009 METRO Cash & Carry Pakistan Member of METRO Group

Sustain & Succeed

Best Practice Day 2009David Boner, Operations Director

Lahore, November 19th, 2009

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Corporate Movie METRO Group

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1 Introduction of Metro Group

2 METRO Cash & Carry Pakistan

3 Global Recession & Shape 2012

4 Four Defining Business Model Pillars of MCC Pakistan

5 Supply Chain Efficiencies & Cold Chain Development

6 WEI JI

7 Conclusion

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Cross-divisional Service CompaniesCross-divisional Service Companies

Cash & Carry

Cash & Carry Food RetailFood Retail Department

StoresDepartment

StoresNonfoodSpecialtyNonfoodSpecialty

Sales Division of METRO Group

The METRO Group is one of the Top 5 retailing groups worldwide with sales of € 68 billion in 2008. The company has a headcount of some 290,000 employees and operates about 2,200 outlets in 32 countries.

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METRO Cash & Carry is internationally leading in B2B Self-Service Wholesaling

• Headquarters: Düsseldorf, Germany

• Over 655 locations in 30 countries

• More than 100,000 employees

•Sales of € 33.1 billion in 2008,

(over 80 percent generated

outside of Germany)

• 5.1 million m² total sales area

• Over 2 million customers everyday

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METRO’s main customer categories

Local producers

Key target groups

End-consumers

Importers

CBUTraderHoReCa Institutions

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2007 2009Lahore

Oct 2007

Islamabad

April 2008

Lahore 3

&

Faisalabad

Jan 2009

Karachi

Mar 2009

Five METRO wholesale centers in 18 months.

Opened three wholesale centers in first Qtr of 2009.

BUT….

METRO Cash and Carry entered Pakistan in 2007 with the aim to serve as a value driver for professional customers, suppliers and economy.

METRO Cash & Carry Pakistan

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Global Recession hit the business world… And life won’t get easier

• Major markets went under severe economic crisis

• METRO also felt the impact as our professional customers were effected

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The Big Question Was…….

HOW TO….Excel In Tough Times

?????

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Cost

+

Value

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Four defining Business Model Pillars of MCC Pakistan

METRO Cash & Carry Pakistan’s Local Adaptation

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Direct Sourcing

Increased Efficiency

Cost Reduction

Adds Value to the Supply Chain

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Implementing a modern cold supply chain (F&V)

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Implementing a modern cold supply chain (Meat)

Average shelf life increased to 5 days

Reduction in rejection rate

Improved quality

Food grade material for packaging

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Implementing a modern cold supply chain (Fish)

Average shelf life increased to 10 days

Reduced post harvest losses

Value addition

Food grade material for packaging

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WeiJi

Crisis

Opportunity

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Conclusion:

•The global economic crisis gave us a

chance to excel because it is only in

tough times that you feel pressure.

•This pressure leads us to think as

a team and provided us an

opportunity to prepare our selves

for devising & implement successful

futuristic strategies.

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Questions???