INTRICT ENTRY 8

Makro Project before the Visio Incident.

INTRICT
Midterm Project
MARALIT, Jonathan S22
MANGULABNAN, Jesse July 29, 2008
PANGAN, Angelli
PARUNGAO, Liam

MAKRO


Established in the country in 1995, Makro is a company that caters to the various needs of professional customers and retail business. It is a high volume, low price, low cost, no-frills cash and carry wholesaler that provides the best buying conditions and products suited to the needs of its professional consumers. Pilpinas Makro Inc. is a partnership between SM Prime Investments of the Sy Group and SHV Holdings N.V.


Pilpinas Makro Inc. is a partnership between SM Prime Investments of the Sy Group and SHV Holdings N.V. of the Netherlands. Makro develops its activities together with local partners who understand local situations and traditions. The concept of distribution that Makro introduced to the Philippines is one that has been proven successful in may develop countries around the world.


Since Makro is a trade center that offers food and non-food products, they should make sure that they have the goods to sell by ordering the right amount of goods at the cheapest price possible from. So, how do they do it?


The answer: Makro Information System & Makro Business System


All 15 Branches of Makro use MIS to connect their system with other companies and MBS helps speed up ordering, control stocks and lessen distribution problems within branch. Makro Makati uses computers located in free spaces inside the store to access the MIS and MBS. They don't keep offices in Makro Makati to maximize the store floor.



MIS and MBS functions:

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Check stocks or sales
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Checks incoming deliveries
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If limited stock, it endorse another branch
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Updates itself to help users adjust



Like any/every business store, Makro follows a set of procedures as follows:

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Makro orders goods from the supplier and specifies the schedule for delivery using the MIS.
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Suppliers' Information System receives and confirms the order of Makro.
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Once confirmed, the supplier makes sure that they have the right amount of goods to be delivered on time to avoid rejection of goods because Makro makes suppliers comply with the "No More, No Less Policy" and the "JIT" or "Just In Time Policy" of goods.
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The delivery trucks are designated to docks depending on what goods/products they will deliver.
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They follow a Tracking System Cycle which means the trucks will follow a specific route from the nearest Makro Branch to the next nearest one and so on.
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They start distribution channel early because "Horeca" or "Hotel Restaurant and Caterer Buyers" buys early. Makro will lose costumer if they don't adjust with the Horeca.



Products are classified into 3 kinds:

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Dry Food Products
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Wet Food Products
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Non-Food Products



Dry Food Department


As stated above, a specific date of delivery is set after ordering a certain quantity of products from the supplier. Certain steps for product approval are followed in order to be systematized and lessen errors made.


1.

As soon as the delivery truck arrives in the dock, the products ordered are then sent to the "GR" or "Good Receiving Hall".
2.

In the GR Hall, the receipts are checked, for these are the basis of receiving. These are checked to be able to make sure that the quantity of products ordered is correct.
3.

Makro, in this system, only accepts Just In Time deliveries. Meaning, products are neither delivered in advanced nor late.
4.

After which the goods are received, Makro sorts the goods according to their brand, size, kind, and packaging.
5.

Price tags, which contain the bar code and necessary information about the product, are then printed in the "ALC" or "Audit Logistics Center".





Wet Food Department


1.

The products belonging to the Wet Food Department arrives at Makro. The products at this department are received in the wet dock. The Receiving time for the wet dock is at 5:00 AM till 10:00 AM in the morning. When the wet goods arrive, they are checked and sorted.


They are received in this order:

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Fish
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Meat
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Poultry
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Frozen goods


2.

The ones sorted for fresh meat and the ones to be stored in the freezer are separated.
3.

The fresh meats are brought into the fresh meat section.
4.

They use a weighing scale to weigh the goods.
5.

The ones to be stored are placed in the General Freezer following the "FIFO" or the "First In, First Out Policy".


There is a term called "LGR" or "Last Goods Received". It determines the span of spoilage. The product that is most susceptible to spoilage is fish so the fish gets the priority. The last one received is frozen goods because it doesn't spoil that easily. They are either placed in the freezer or the fresh meat section.


The general freezer usually keeps its temperature at -22 to -18 degrees Celsius. In the freezer, the policy FIFO is enforced. It means first in, first out. The reason behind this is to avoid spoilage. The JIT delivery or just in time delivery policy is strictly enforced in this area because the goods in the wet food department are highly perishable and if there goods don't arrive in time, they may spoil.



Non-Food Department


Makro stores are designed for customers to conveniently find what they need; the whole Makro is divided into two different departments namely the food and non-food departments. The non-food department offers a large array of different appliances, video and audio equipment, house and office furnitures, health and beauty products, apparel and do-it-yourself products.


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Procedures of Non-Food Department are comparable with the Dry Food Department.

Policy for Product Return


As we all know in every store we cannot entirely eliminate errors especially in a very large scale business such as Makro. We can't always guarantee the performance of our products, but they've developed a system where their valued customers will be able to return products with potential factory defects.



For returning products, Makro follows these specific guidelines:

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It was bought within EIGHT days from Makro.
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The official invoice / proof of purchase / receipt are presented untampered.
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Items returned should be in proper condition.
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Electrical device untested prior the actual purchase is not applicable for return.
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Items on "SALE" are not applicable for return.
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Garments and other related sanitary products are not covered.
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Products damaged due to CONSUMER NEGLIGENCE are not covered only damaged or faulty products are covered by the return and exchange policy.
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Fresh items past its expiry dates are not covered by our return and exchange policy.



Now that we know what the procedures that Makro Makati follows to take care of products to sell, we talk about the customers.



Makro is not for everyone. If you want to buy goods from Makro, you have to be a member. Membership is free. When you apply for membership in Makro, you agree to their terms of service and fill up the required information needed. They input the information in their database and connects it to the "CMM" or "Costumer Marketing Management" Software.



Uses of CMM:

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Once a customer buys in Makro, the system inputs how many, what and when they bought in Makro.
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The system keeps a record of those information and displays Patterns of Buying or the daily / weekly / monthly transactions made by a costumer.
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It predicts what the costumer will buy next.
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It offers a substitute if product is not available.
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The system helps the Inventory and Sales Department adjust to the information displayed by the CMM.


For example:


---A customer buys 150 packs of Ligo Sardines, 100 packs of Moo Chocolate Drink and 999 packs of Beam Toothpaste every Tuesday, Thursday and Friday.


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The system records the products bought, the quantity and the days within a week wherein they made transaction.
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The Inventory and Sales Department looks into the information and adjusts to it. If the customer buys every Tuesday, Thursday and Friday then they make sure to add the order.


This process lessens spoilage of goods/products.



Makro's Packaging System

Makro has a unique packaging system. They pack the goods according to the quantity its customers need. The following are reasons why products being sold in Makro are packed in such a way.

1.

Goods are packed in large quantities because Makro caters to business holders like sari-sari stores, mini-groceries, restaurants, and the like.
2.

Downsizing, meaning the quantity of products per packed has been lessened, has been implemented to cater to end-users, and also to lower the price on the case.


For example:


---The vegetables being sold in Makro have been packed in large quantities.


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Downsizing of the packaging has been enforced due to the customers' suggestions.
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Makro can also attract more customers because goods are not only for business holders, but as well as for household purposes.



Other Information:


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Makro stores are designed for customers to conveniently find what they need and at the same time, maximizing space and efficiency of the store floor. They have created a system which no longer requires a warehouse, making Makro the warehouse itself.
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With this system, customers will no longer wait for the product to be taken out from the warehouse in Makro. The product will be replenished / stocked in a regular basis using a forklift because the supplies of the products are located in the upper shelves so they can easily be transferred which are called above the light storage.
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Also in Makro, the aisles are really wide; they are specially designed for the bulky carts of Makro and also for the forklifts to be able to navigate properly wide aisle are required.
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The bulky Makro carts are also efficiently designed in order for customers to easily transfer the big wholesale products, which are typically packaged in boxes so a big cart is really a must.




Source:

Pilipinas Makro Inc. Business Profile http://www.makro.com.ph/flashindex.html

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