Managing Director, MetroHabib Cash & Carry Pakistan

Blurb:

You need to understand your customer and constantly strive for providing not just the product but the solutions as well, which can enhance their business because this is what in return grows yours. When your goals are clear and you have a passionate, energetic, goal oriented team, you can move mountains. At the end of the day, it is just smart business!

Evolve: You are an expert in Asian retail business. Please brief us on your professional journey. 

BB: If I count the number of years I have spent in Asia, I can easily say that Asia has become my second home. For this continent, I have now developed a special affiliation. Retail environment is growing here yet it is competitive; therefore, a person like me who likes challenging working environment, it has always proved itself pleasurable and rewarding in every successful endeavor. 

Before joining as Managing Director, METRO Cash & Carry, Pakistan, in 2013,I was working as Offer Management Director, METRO Cash & Carry, India. During the period I spent in India, I have been taking decisions for better procurement and commercial growth. What I would take pride in is the fact that METRO Cash & Carry, India moved ahead with pan-India development plan and a special focus on customer centricity and category management.

At Carrefour Group as Commercial & Marketing Director in Thailand, the project close to my heart was developing the mini-hypermarket format which turned out to be a successful venture. I started my career in operations in Carrefour France and went on to Head Non-Food merchandise management followed by combined Sales, Procurement and Marketing functions.

Evolve: Did METRO Cash & Carry found Pakistan a promising destination?

BB: Pakistan is a land of opportunities, particularly Punjab which provides a good agricultural base as well as a good supply source especially for fresh food items which is one of the basic requirements of our business. Pakistan is rich in resources and skills whereas the abundance of labour suits perfectly for a professional business set up. It was for this reason that we chose Pakistan for our business and based our headquarters in Lahore.

Evolve: What were the first steps METRO Cash & Carry took in Pakistan? You must be facing a number of business challenges. How do you address them?

BB: METRO has so far invested over 100 million Euros in its stores as well as in the supply chain infrastructure; hence, it has added a fair share in strengthening the local trade and industry. We serve around more than 0.5 million professional customers in Pakistan. As METRO establishes its wholesale business, it also builds up supply chains in emerging markets. on one hand, efficient supply chain management generates economic growth and local farmers and producers get direct access to the market while, on the other end, traditional traders, representatives of the majorities in many markets, get stable supply of high-quality goods.

A modern distribution infrastructure links local producers directly to the local market and leads to greater efficiency especially in the food supply chain. This in turn contributes to improve the quality of produce and reduce food wastage. Farmers achieve a better income while consumers benefit from better product availability and quality, lower prices and greater transparency in the supply chain. Domestic consumption in fuelled and inflation on food price is safeguarded, allowing the country to enjoy stability in food supplies in the long run. 

METRO aims at adding value to the product, starting with the source (the farm base) and moving on to every stage of the supply chain. The result is that output and quality of fresh produce improves significantly, food wastage is minimised and all members of the supply chain enjoy a better income and food prices come down. Scarcity of temperature controlled transportation and warehousing facilities also create an impact on availability and quality issues of product. 

METRO realized the issue at a very early stage and designed specific training programs for its suppliers to manage a cold chain system and maintain the quality and freshness of product as per international standards. 

We conduct regular trainings to familiarize our suppliers with the new techniques in the market which eventually also help them in their business development and help us in maintaining and keeping the bar high. We have a fast and efficient supply chain system.  Keeping in view the supply chain infrastructure, it takes on an average seven days in the delivery of stock. But METRO took some initiatives to ensure fast, quality and complete stock availability at stores, e.g., Fruits and Vegetables Collection Centre is serving store needs within 25 to 30 hours with fresh and quality stock; Pulses Processing Platform ensures consistent and quality suppliers; Cross Docking Operations in North and South Region  supports suppliers and stores with fast and complete deliveries eliminating intermediaries and associated concerns.

After investing a number of years in this business in Pakistan, we feel that establishing direct supply sources is a big challenge. But, we want to directly interact with producers and our teams are more and more working together with local farmers & suppliers. Farmer & supplier trainings, upgrading their skill set and better product handling techniques are the areas of our core focus. We strongly believe that developing a sustainable supplier chain is what will bring stability to business & economy and we are driven to achieve that goal. 

Evolve: What is METRO’s contribution towards Employee Development?

BB: With nine outlets in Pakistan, METRO is entertaining a big market of human resource with a head count of approximately 2000 local employees. We pay special attention towards their training and development which is conducted on regular basis. I would proudly like to add here that employees from METRO Pakistan are also working on good positions in METRO Group, i.e., Germany and Kazakhstan, while they are also invited to conduct international trainings and project handling in different countries with METRO presence where their skills are acknowledged and appreciated. METRO is significantly raising productivity and transfer of foreign skills and technology and therefore contributing to the long-term economic as well as human resource upgrading and development of the host country. 

Evolve: How do you see the quality of your products and customer service in a highly competitive market? 

BB: METRO is providing not just products to its professional customers (restaurants, cafes, small traders and offices), but also solutions to make the businesses of theses SMEs more successful. With customised support and know-how transfer, we help them thrive in an increasingly competitive market environment.

With modern retail on the rise, small traders in emerging markets are facing increasing pressure as consumer demand for better quality and wider variety of goods as a result of growing affluence. The traders Support and Partnership program guide these stores in revamping their business to better meet their customer needs and improve their competitiveness while fully respecting the independence of the shop owners involved. For customers in HoReCa sector, METRO constantly invests in trainings, events and individual consultation to help them improve the overall standard of HoReCa.

Evolve: What distinguishes METRO from its competitors?

BB: At METRO, we create Customer Value at every touch point.  

Evolve: Is there a company that has impressed you? 

BB: I have always admired Amazon for its relentless sense of innovation.

Evolve: What is the best way to achieve long-term success? 

BB: Consistency, sustainability, clarity, trust and an urge to do more are the keys to success in my opinion. There are no short cuts or a secret formula to success. You need to be clear about who you are and what your direction is. You need to understand your customer and constantly strive for providing not just the product but the solutions as well, which can enhance their business because this is what in return grows yours. When your goals are clear and you have a passionate, energetic, goal oriented team, you can move mountains. At the end of the day, it is just smart business!

Evolve: What are your expansion plans?

BB: We have expanded from five wholesale centers to nine; we are now running operations in Lahore, Faisalabad, Islamabad and Karachi. Talking about business growth, the opportunity is immense; however, the focus in the short term is on sharpening and growing our merged businesses like-for-like, integration and remodeling of four Makro stores into METRO is our priority and this is also capital-intensive. For future expansion potential exists – going to Rawalpindi and Multan to name a few – are on the horizon.

Evolve: Where you see yourself and your organization in next five years?

BB: I see our organization as No. 1 retailer in Pakistan in the next five years. For myself personally, it is also an important goal because as I see it, personal growth is always directly proportional to organizational growth and success.

Evolve: Did you find Pakistan investment friendly? 

BB: Like I said earlier, Pakistan is a land of opportunities and soon an important emerging market for doing business; in particular Punjab offers a good blend of resources, infrastructure and opportunities. For new investors it will really depend upon which business they plan to invest but one thing I must say that there are opportunities all around and these must be availed.