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Metro Wins German Logistics Award

16.10.2002

Metro Wins German Logistics Award

The logistics subsidiary of the internationally operating Metro Group is to be awarded the German Logistics Prize 2002. Metro MGL Logistik GmbH of Düsseldorf will be honored by the Bundesvereinigung Logistik e.V. (Federal Logistics Association) for a concept that has fundamentally changed the cooperation between the suppliers and the stores of the Metro Group.

The center of this concept is the so-called procurement logistics system that the group introduced in 1996. Traditionally it is the suppliers of the consumer goods industry who supply their merchandise to the trade via logistics service providers. The Metro logistics subsidiary, on the other hand, largely controls the process chain itself pooling the merchandise flows along the way: At the suppliers’ end the goods are pooled and picked up for the stores. At the stores the consignments of several suppliers are dropped after having been pooled specifically for a given store.
 
"This is an absolute innovation in the retail trade," stresses Wolfgang Prümper, General Manager of MGL. "We have succeeded in bringing transparency to the very complex supply relationships between manufacturers and Metro stores." In the process, MGL cooperates with a few carefully selected forwarders. In Germany they provide the link between some 4,000 suppliers and 1,700 stores of the Metro Group – as a rule within less than 24 hours.
 
From the order via transportation all the way to delivery to the store the entire process is controlled in such a way that it is cost-effective, cuts down on the traffic load and is easy on the environment: All goods must be delivered to the right place at the right time with the smallest possible number of trucks. In the case of the Cash & Carry sales division, for example, the introduction of procurement logistics has reduced the number of delivery trucks at the ramps of the stores by up to 50 per cent. In addition, the average delivery volume per truck could be increased from 1 pallet to 30 pallets.

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