METRO Group
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MGL METRO Group Logistics is the provider of logistics services for all companies of the METRO Group with activities in 25 countries in 2007. Currently around 3,800 employees in Germany and 250 abroad work for MGL. In its function as the logistic services and competence center, MGL controls the merchandize flows via standardized supply channels according to the supply channel portfolios established in the individual countries, the local setup as well as the assortment and service requirements of the METRO Group sales brands.
As an alternative to the supplier’s direct delivery to the store, MGL decides between the following supply channels:
Central warehousing and distribution to the stores
Break-Bulk-Cross-Docking (BBXD)
Procurement logistics
METRO Group Logistics operates nine warehouses for food articles and two for nonfood merchandize across Germany. Among other duties, it takes on the central warehousing for the sales divisions Metro Cash & Carry and Real and is to a substantial degree also active for Galeria Kaufhof. Radio-controlled warehouse management systems and the use of modern picking and transport technologies (e.g. Pick-by-Voice, GPS-based "tracking & tracing") ensure that the orders of the sales divisions are picked and delivered in due time and completely. MGL increasingly uses electronic data interchange for cooperation with the suppliers.
In Break-Bulk-Cross-Docking (BBXD), the goods are first picked for shipment to certain logistics platforms where they are in turn picked by stores and immediately shipped to the locations operated by the METRO Group sales divisions. During the central warehousing and distribution and also in BBXD, MGL in addition also takes on the merchandize planning, quantity and quality control as well as the invoice checking for the deliveries and the handling of reusable containers and valuables. The main benefits for the sales divisions are:
To further optimize the efficiency of the supply chains within the METRO Group, MGL developed the concept of procurement logistics according to which part of the merchandize is picked up at the producer’s and shipped across Germany to the individual stores within 24 hours. Interim storage of the goods is omitted. Compared against direct delivery by the suppliers this concept reduces inventory levels at the stores and thus also the corresponding warehousing costs. Moreover, it brings down the number of deliveries per store. MGL has already rolled out the procurement logistics concept to other countries, including in China. In addition to higher profitability, the concept of procurement logistics also offers benefits in terms of environmental protection:
Thanks to its innovative approach the MGL concept of procurement logistics received the German logistics award
from Bundesvereinigung Logistik e.V. (German logistics association) in 2002.
In addition to ensuring a sustained performance capability, environmental protection and social compatibility aspects play an important role in the organization of the logistics systems and the daily work. For achieving this successful balance MGL was honored with the Eco Performance Award.
Germany
Metro Türkiye
Procurement
Logistics
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