Metro has centralized its procurement of fish, meat, and produce through International Trading Offices (ITO), aiming for a consistent supply of fresh products for its wholesale operations globally. A significant portion of these centrally sourced goods are marketed under Metro's private labels, providing a wide array of products at competitive price points for the food service sector. The company enhances procurement efficiency through consolidated ordering, streamlined logistics, and collective negotiations with manufacturers.
In the 2023/24 financial year, the Valencia Tradition Office (VTO), which manages the joint procurement of fresh produce for Metro globally, reported a 15% increase in procurement volume, reaching 290,000 tonnes. The office collaborates with approximately 300 suppliers from over 80 countries, with Spain contributing to half of the total procurement. The VTO's team of 50 commercial experts manages more than 2,000 fruit and vegetable items daily, serving 17 Metro and MAKRO countries and Food Service Distribution (FSD) clients like Classic Fine Foods and R Express. Key product categories by volume include oranges, potatoes, tomatoes, onions, and lemons.
The VTO also collaborates with Metro's quality assurance teams to identify competent suppliers, ensuring quality through regular inspections in primary sourcing countries. All VTO-sourced products hold Global Gap certification. Additionally, the VTO focuses on process simplification and standardization, including product ranges, packaging, and labeling, to optimize order bundling for global distribution.
Source: Metro