Bogdan Iliescu, Vice President of Product - Supply Chain at METRO.digital on the company’s strategies for supply chain and technological innovation, driving growth and enhancing customer experiences.
In 1964, METRO opened as a cash-and-carry store in Germany. Sixty years later, METRO the leading wholesaler and partner for around 15 million customers in the hotels, restaurants and catering (HoReCa) industries, as well independent traders across Europe and
ETRO.digital is the tech product-led company of METRO which develops customised IT services and products worldwide for all METRO countries.
Speaking to us today about how the company is wielding new technologies and transforming its supply chain to disrupt the retail industry is Bogdan Iliescu, Vice President of ProductSupply Chain at METRO.digital.
To begin, he explains the METRO ambition – the company’s goal to reach €40bn in sales by 2030 – and the strategy behind that objective.
“The METRO ambition is driven by three main pillars: the wholesale stores, food service distribution (FSD) and the digital marketplace,” says Bogdan.
serve the traditional business while functioning as efficiently as possible for our FSD customers.
“In each and every pillar we are applying the latest technologies to drive success, and the same goes for every component of our supply chain. To improve forecast accuracy, for example, we’ve been using machine learning and AI models for the past three years. With this technology, we managed to improve the accuracy of our forecasts by more than 20% in the last year alone. This solution allows us to improve the stock availability to a level of around 97%.”
“When we talk about wholesalers, we’re talking big volumes,” says Bogdan. “We need to be efficient and to make the journey of the goods optimised in a way that both we and the customers can benefit from. To achieve this we are transforming our entire cash-and-carry METRO is around restaurants well as Asia.
“Our growth is driven primarily by the FSD sales, which are set to more than triple by 2030, leveraging our widespread network of more than 600 locations. That means the supply chain transformation is essential, especially around the stores’ transformation into multi-channel fulfilment centres. What we’re working on now is leveraging our assets to still
At METRO.digital, the purpose of putting this technology in place is to create an autonomous supply chain, streamlining operations.
operations and digital solutions to be autonomous and task-driven.”
For Bogdan, working on this process of transformation is a source of tremendous pride.
“We’re facilitating convenience in our customers’ lives,” he says. “Using the scan and go technology we’re embedding into our mobile apps is simple and saves time for our customers. They can shop, scan, go and locate the item and that’s it. It makes the process a nice experience for the customer, as well as making things easier for our employees. Everything has become more efficient by injecting technology into the equation.”
“Our IT strategy is built on the principle of ‘best of breed,’” says Bogdan. “Yes, we are a technology company. Yes, we are following best practice. Yes, we are continuously innovating our processes with datadriven strategies. But in the end, we know we cannot do everything alone, particularly in the area of workforce planning.”
One such boost for the company’s efficiency has been its work with intelligent software solution provider SISQUAL.
“People are at the core of our operations, so we wanted to make sure we were working with a professional partner to implement
“There are also a lot of legal regulations we must comply with, which SISQUAL has been great at working with. They’re open to new ideas, and we have collaborated in a terrific way”
a strong workforce planning solution. So, we decided to work with SISQUAL, who are expertly implementing these processes in accordance with our specific needs. It’s amazing what they can do.
“It’s not easy to be a worker in a store moving huge quantities of goods, so we want to ensure shifts are properly planned to serve not only the business, but also our people’s needs. There are also a lot of legal regulations we must comply with, which SISQUAL has been great at working with. They’re open to new ideas, and we have collaborated in a terrific way.”
For Bogdan, transforming the supply chain at METRO.digital has been another keystone to catalysing change for the business.
“Everything we’re doing, we do for our customers and their needs,” says Bogdan. “And this stems from the heart of the company, the supply chain. In an era of speed and labour force challenges – particularly in the HoReCa industry – you need a strong partner to supply you with the right assortment, the right quality
and the right quantity at the right time. And that’s what we’re doing at METRO. Our core proposition is to be a trusted partner of independent businesses, and that’s where the inspiration for innovation within the supply chain is coming from.”
However, this process of technological innovation is not done blindly.
“People take technology for granted,” says Bogdan. “It’s easy to do. There are so many ideas and so many things to do. But while we’re investing in new technologies, there’s one element that makes a difference. What METRO is doing is identifying the right opportunities and tackling them in a prioritised way using clear objectives and performance indicators. We’re always staying focused on doing what makes an impact for us instead of just delivering new features day by day.”
This philosophy towards innovation has helped the company grow at scale and will continue to drive growth in the years to come, Bogdan believes.
“When I look to the future from a METRO.digital perspective, it’s a matter of being consistent on the road to building extraordinary products,” says Bogdan. “Technology is evolving, as are the opportunities that come with it. We are continuing to leverage technology to create
game-changing solutions for our customers. At the end of the day, it’s a marathon that we need to run together to deliver quality to our customers – not a sprint.
“In supply chain, we’re focusing on doing what creates excellence for the business and the customers. That way, the innovation will continue finding ways to make even more use of the technology to reduce both the physical and cognitive load on our workers.”
These workers, Bogdan concludes, are crucial to company growth and the development of a flourishing culture at METRO.
“When I talk about METRO. digital, first I like to look at the passionate people on our team,” says Bogdan. “It’s a multicultural business, with a lot of nationalities across our locations in Germany, Romania and Vietnam. There’s a wide spectrum of knowledge and culture, but what’s consistent is the value of respect and the drive to grow and learn. I’ve climbed the ladder at METRO step by step and each day I’ve felt supported and felt that I learned something new. I’ve been in the company for 12 years, and I’m enjoying it now as much as I did on my first day.”
For further information on METRO.digital, visit metro.digital.
“I think we are responsible for our own growth, and the growth of others,” says Bogdan. “I’m always considering how I’m supporting my people’s growth and development while providing them with new opportunities. To help this development, I always encourage people to read Empowered by Marty Cagan, which delves into innovative approaches to delivering technology to transform businesses. But mental development is equally important. I found that reading When the Body Says No by Gabor Mate made me very aware of a lot of things working deeply inside the body. I enjoy reading and learning about psychology in this way, as it helps me know myself and my journey better.”
“I used to be a football referee, which was an amazing learning opportunity,” says Bogdan. “Doing this taught me what it means to be fair and taking responsibility. That experience of guiding and supporting has shaped me to this day.”
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