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  • Essay / Supply Chain Management Project on Metro Inc

    Table of ContentsInventory ManagementDemand ForecastingProcurementWarehousing/Storage/Material HandlingTransportationCustomer ServicePerformance MeasurementMetro Inc. evaluates its overall performance using several indicators major such as: TechnologyComputerized Shipping and Tracking: Radio Frequency Identification: Inventory Management The range of subsistence products are not only purchased and stored for the needs of particular local customers, but also incorporates a global arrangement to meet the needs of minority groups and culinary trends. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayMetro is one of the most popular grocery stores in Canada which includes items such as meat, fish and seafood, fruits and vegetables, beer and wine. , health and nutrition.Metro focuses on freshness and bases its prosperity on its separate food combination. Since Metro does not have the expenses of a traditional distributor (e.g., door-to-door transportation), it can offer its customers a greater discount and value for money. It also offers items in a wide assortment of sizes to appeal to a small and large customer base. Inventory is divided by product type because items must move at different temperatures. Due to the perishable nature of food, stores need to be restocked day by day. When the store keeps non-perishable food products, the main problem is to stock these products in sufficient quantity according to the demand and this is where supply chain management comes in and plays a vital role in inventory management. Replenishments should be planned carefully and frequently so that stores do not overstock their food products and should be kept in a suitable warehouse in the right quantity. Rather than working in large-scale transportation hubs, Metro has its own few out-of-stock hubs devoted to particular items. classified such as natural products and vegetables, fish, fresh and frozen foods for faster handling and assurance of freshness. Demand Forecasting Demand forecasting is the scientific and analytical estimation of the demand for a product (service) for a particular period of time. To learn in detail about the demand forecasting methods used by the metro, we met with the metro supervisor who gave us an idea of ​​how they determine the demand for products. He said that they mainly use 3 methods to determine the demand for the products. The techniques are: Survey methods. Opinion polling methods. Statistical methods.1. Survey methods: As part of survey methods, Metro conducts surveys on consumer intentions, expert opinions, management plan or market surveys. The data obtained through these methods is analyzed and on-demand forecasts are made. These methods are generally used to make short-term forecasts of demand. Consumer Survey: Metro generally uses these methods. The consumer survey method of forecasting demand involves direct interview with potential consumers. The interviewer simply contacts consumers and asks them how much they would be willing to purchase for a given product at a certain number of alternative product price points. The consumer surveycan take any form as follows: Complete enumerationSample investigationEnd use method.2. Opinion Polling Methods: Opinion polling methods estimate demand using the opinions of those with market knowledge, such as professional marketing experts and consultants, sales representatives, and executives. Recovery judgment by knowledgeable people can be an important source of information. Metro does not use them frequently but uses them when the product particularly requires detailed market research. In fact, some forecasts are made almost entirely based on the personal ideas of key decision makers.3. Statistical Methods: Metro uses previous research data to determine product demand. The previous data helps determine the trend of supply and demand, which helps Metro analyze market scenarios. Purchasing Purchasing is the process of recognizing the need for the goods, finding a suitable supplier, establishing affordable payment terms, and actually purchasing the goods. In other words, procurement means the acquisition of all goods, services and works necessary for a business. Metro is a retail company that offers a wide range of products to customers in order to offer the best product at the price. Metro's purchasing, merchandising and replenishment teams work closely together. To ensure that products are available in stores, Metro's procurement team performs the following steps: Internal Needs Analysis – Metro's procurement process begins with analyzing the needs for the products needed to fill the shelves stores. In every Metro store there is a proper inventory and sales management technology system which records the quantity sold in a day and the quantity of stock they have at that time and based on this they estimate the goods what they need and the quantity. This product may be either a new item or an item currently on order. Some specific products, such as fresh produce and fruits and vegetables, need to be restocked up to date. Review Supplier Options – In every procurement process, each business must decide which supplier to obtain its goods from. Metro has a long list of suppliers as it handles different types of goods. Metro sticks to its regular vendors to purchase the goods and also tries to find a new supplier who can minimize costs. Metro purchases final products directly from a large number of manufacturers. Pricing and Terms – After choosing the supplier, a business needs to finalize the payment and terms and conditions of the business. Metro has several different agreements and contracts with its suppliers. Metro purchases products from its suppliers at low prices and these products at retail prices. Receiving and Inspection – Metro receives goods from its large number of suppliers, then those goods are delivered to Metro's distribution centers. In distribution, employees inspect and then accept or reject the product. They also reject or submit the claim for damaged goods. This damage may occur during transport of the goods or during loading or unloading. Delivery – After placing an order, the goods are delivered to the metro distribution center. In these distribution centers, Metro's procurement team organizes goods according to the needs of each store and then delivers these goods to storesMetro based on their order or needs. Invoice and Payment – ​​Once the goods are received, the final invoice number has been created and final payment is made to the suppliers. They need the invoice number, receiving document and original purchase order to complete the procurement process and make final payment to the supplier.Warehousing/Storage/Material HandlingBy collecting information from the supervisor of one from Metro distribution centers, we came to know the company's warehousing and handling system. After the two largest grocers Loblaw Companies Limited and Sobeys, Metro reached third place with 365 different locations in Ontario and Quebec. The products which come from different distributors later depending on their order are sent to different stores for example Metro, Food basics and other retail stores. Products such as meat, seafood, fruits and vegetables, health and nutrition products are stored in the warehouse and the method used to release the materials is known as first in, first out ( FIFO). Metro consists of four types of warehouses, where different products are kept at different temperatures. One of the regular temperature warehouse contains washing liquid, cat food, water, juice and dry food, i.e. pasta, rice flour, cheese flour. The cold chain concerns meat and a dairy product stored between 0°C and -5°C. Fruits and vegetables are stored in a mixed medium at a temperature of 5°C to 10°C or 15°C depending on the product. Material handling is known as moving material where it is moved a short distance into a storage area. Material handling includes loading, unloading, palletizing and depalletizing. In Metro, forklift equipment is used to handle materials or store them properly. Metro uses this system to improve customer services, reduce inventory, shorten delivery times and reduce overall handling costs in manufacturing, distribution and transportation. TransportationMetro Inc.'s transportation network is considered one of the best networks for supply chain and logistics. At Metro, they embrace transportation innovation while continually exploring new ways to create collaboration, reduce carbon impact and accelerate business development. Metro has the resources and industry positioning to develop and deploy dynamic, business-focused solutions at competitive rates. Constantly improving logistics and distribution is one of the main priorities in order to maintain our competitive advantage in an increasingly competitive market. The logistics sector deals with the transportation and warehousing of goods. Metro makes more than 1 million deliveries per year, and trucks are most often used to make these deliveries. Our team works in several ways to improve the energy efficiency of our company fleet, including: Replacing old trucks with new ones, also providing more efficient models that can help minimize harmful emissions. Improve aerodynamics by adding side skirts to trailers. Train drivers. on techniques for gradual shifting and minimizing idle time. They use battery-powered auxiliary powertrains, rather than using diesel to heat the sleeper cabins. They re-seal tires when the threads are worn, which makes them.