CSD - The caring store.

About us

Canteen Stores Department (CSD) is one of the most prestigious chain of retail stores in Pakistan committed in serving the Armed Forces Personnel, civil employees, residents and their dependents throughout the country. It Provides quality products at competitive prices. In new era, CSD has ventured in establishing new stores, equipped with modern facilities and high standards of customer service. CSD has various sections.

Introduction

The Canteen Stores Department (CSD) has passed through various stages of development since 1913 as follows:-

After World War I, the Army Canteen Board was the first venture initiated primarily to cater for the British Forces stationed in the Indian Sub-Continent.
During 1927-28 the Army Canteen Board was liquidated in favour of Canteen Contractors Syndicate Ltd. The finances were raised on the basis of shares held by each contractor for the contract or contracts approved in his favour by the Quartermaster-General in India. The Articles of Association drawn up and signed between the Secretary of State for India and the Government of India provided that in the event of War the Canteen Contractors Syndicate would be taken over by the Government of India lock stock and barrel.
In 1942, a contingency did arise with World War II as a result of which the Canteen Contractors Syndicate became the Canteen Stores Department, Government of India.
After World War II, during 1947 Government of India returned the share capital investment along with the agreed dividend to the Canteen Contractors on the Share Register.
On independence in Aug 1947, the assets of the Canteen Stores Department India were divided in an agreed proportion of 2/5 and 3/5 respectively between Pakistan and India. As a result of which the “Canteen Stores Department of Pakistan” emerged catering for the Armed Forces of Pakistan under the control of the Ministry of Defense.
Consequently, CSD inherited three Transit Depots loc at Karachi, Rawalpindi and Patanga (East Pakistan). All major stations had officers’ shops run by the Corps of Ordnance while the units had canteens run by the contractors.
In 1960, all Officers Shops were taken over by the Canteen Stores Department. With a new Role/Status this gave growth to the Wholesale and Retail Shops CSD to cater for all ranks and not for Officers only.

The details about the Department are covered in the subsequent paragraphs as follows:-

Mission
Role
Organization

Mission

CSD is providing service to the Armed Forces of Pakistan as well as other departments of Ministry of Defense with the following mission:-

To supply entitled personnel with standard quality articles of daily use, other than those supplied from the Government or other authorized sources, at reasonable rates through its own retail outlets and unit canteens.
To form the basis of an efficient canteen organization in peace and war for troops located any-where in the country and operational areas.

Role

CSD's status is that of a Non-Government Commercial Organization under Ministry of Defense, meant for the welfare of Armed Forces Personnel, as well as those paid through defense estimates. This dual role of being a commercial organization with welfare orientation is performed by CSD as follows:-

As a Commercial Organization. CSD raises its own funds, buys and sells all items like other business organizations. CSD neither has any exemption from duties/taxes/levies etc nor gets any subsidy or fin sp/assistance from Government or other sources ever since its designation was changed (since 1959). However being part of Min of Def it is provided with the following:-

Government land for construction of CSDs, storage accommodation and offices.
In some of the stas Government accommodation has also been provided on normal rent for CSD offices, shops and bulk storage.

As a Welfare Organization. CSD tries to provide maximum possible relief to the customers by keeping its prices lower than the mkt. Of late, we are trying our best to keep the rates lower than Formation Welfare Shops and as far as possible even lower or at least at par with Utility Stores. Apart from this, CSD provides job opportunities to ex-servicemen as well as their wards. Generally, their share is about 50% out of the total work force of 1728 personnel (including 41 officers).

Entitlement

As per the SPAO, following are entitled to utilize the facilities of CSD:-

Armed Forces Personnel and their families.
Mujahid, Janbaz Forces.
Personnel of Civil Armed Forces.
Defense Services Group (Old MODC).
Retired Personnel and their families.
Civilians paid out of Defense Budget.
Government servants of Grade-17 and above and their families.
Foreign Military Attaches in Pakistan and officers of UNO.
Others when specially authorized by the QMG.

Lately, the CSD has been opened to all citizens of Pakistan. Those living in Cantonments and surrounding areas are greatly benefiting from this facility. This has facilitated lowering of prices but still earning by selling large volumes like the whole sellers. Thus providing desired relief to all customers.

Organization

There are following three main tiers of organization in CSD:-

Board of Control (BOC).
Head Office (HO).
Field Organization.

Unit canteens, though not integral part of CSD organization, may be treated as the fourth tier, because they are supposed to extend CSD facilities to the troops within the unit lines by procuring goods from CSD both in peace and war.

Board of Control. Board of Control lays down general policy and exercises con of CSD. Its composition is as followings:-

QMG - Chairman
Rep Ministry of Defense - Member (Senior Joint Secretary)
Rep Ministry of Finance (Mil) - Member (FA Army)
Rep Pakistan Navy - Member
Rep Pakistan Air Force - Member
Managing Director, CSD - Ex-Officio Member
Secretary, CSD - Secretary

Head Office. The MD executes the policy of the Board and is responsible for the efficient functioning of the Department. The MD is assisted by the following Directors, who head their respective Divisions at the Head Office:-

Director Human Resource
Director Administration
Director Stores & Distribution
Director Purchase & Supply
Director Hire Purchase
Director Finance & Accounts
Director Information Technology

Field Organization. The field organization has been divided into five zones, i.e., Karachi Zone, Lahore Zone, Rawalpindi Zone, Peshawar Zone, Quetta Zone and Multan Zone. Each zone is being looked after by the Zonal Manager, an off of the rank of Col / Lt Col (Red). Presently, the Department has 103 outlets for selling CSD goods which includes 5 depots (for bulk selling) one each at Peshawar, Rawalpindi, Lahore, Karachi & a sub depot at Quetta, 94 shops (including one Mobile Shop) and 3 petrol pumps in various cantonments of Pakistan. Zone-wise break down of these outlets is as following:-

Karachi Zone

Depot - At Karachi
Sub Depot - At Quetta
Petrol Pump - 01 (at Pano Aqil)
Shops - 26
Area of responsibilities. Whole of Sindh and upto Rahim Yar Khan and whole of Baluchistan.

Lahore Zone

Depot - At Lahore
Shops - 22
Area of Responsibilities. Central and lower Punjab from Jhelum to Lahore.

Rawalpindi Zone

Depot - At Rawalpindi
Petrol Pump - 01-Rawalpindi
Shops - 35
Area of Responsibilities. North of Jhelum upto Taxila, whole of AK and Northern area.

Peshawar Zone

Depot - At Peshawar
Petrol Pump - 01 (Peshawar)
Shops - 18
Area of Responsibilities. From Attock to whole of KPK less Abbottabad and Havelian.

Multan Zone

Depot - At Multan
Shops - 12
Area of Responsibilities. From Okara to Rahimyar Khan.

Business Operation

Procurement – Enhancing Supplier Base. CSD is emerging as one of the largest and modern chain of retail stores in Pakistan, having it’s outlets all over the country. CSD provides quality products at competitive prices. In new era, CSD has ventured in establishing new stores, equipped with modern facilities and high standards of customer service. In order to feed such stores with increased customer flow, procurement has been stream lined, made effective and very proactive. Bulks of the products are being procured from ‘Producers’ to eliminate middle man. The ‘supplier’s base’ has been enhanced specially by registering CSD for ‘E’ Procurement with M/S Tejari Pakistan which has put CSD in a better negotiating position. During FY 2007-08, total procurement of Rs. 4290 million was carried out by CSD. During second half year, all our procurements of Groceries and Raw Material for Poly Project were made by creating auctions on platform of M/S Tejari Pakistan. This was not only quick and simple in tendering but also has helped CSD in bringing more transparency and effective savings in procurement.
Low/Competitive Pricing. The new vision envisaged working on low profits, selling large volumes thus, passing on relief to more customers and at the same time generating more profits through huge turnover. This policy was practiced nationwide. CSD’s selling prices were fixed based on correct assessment/svy of prices and competing well with compatible retail markets such as Army Welfare Shops (AWS), Utility Stores Corporation (USC) as much as possible despite subsidies provided by the Govt to USC.
Discounts from Suppliers. During this year, we obtained discounts amounting to Rs. 26 million from various firms.
Relief to Customers. In financial effects a relief of Rs 52.18 million was passed on to our clientele during FY 2007-08.
Extension of CSD to Unit Canteens and Rebate to Contractors. To facilitate tps at grass root level i.e at the units, CSD had been providing items on rebated price as per SPAO 17/91 to Unit Canteen Contractors. However, over a period of time Unit Canteen Contractors had stopped purchasing items from CSD for various reasons. Now, on dir of the COAS, CSD is extending its services to the tps by providing all items to Unit Canteen at its landed cost, while canteen would sell these items to tps at CSD’s price thus, all unit canteens would really act as “Extension of CSDs”.
Special Rebate to AF Pers. On the directive of COAS, CSD was asg to eval provision of special rebate of 5 to 10% to AF pers on shopping at CSD. A comprehensive study was carried out and presented to the Chairman Board of Control/QMG. After approval of the same, the case was submitted and discussed with COAS who has very kindly approved provision of 5% addl rebate to all married AF pers living in cantts in Govt accn or in hired one. Modalities are being finalized with expansion of IT to all shops for phase wise implementation of COAS directive.
Sale of Uniform Cloth at CSD only. Again on the directive of COAS, Army has stopped uniform to the tps instead CSD has been tasked to sell all types of uniform cloth to tps on payment. Large qty of uniform cloth has already taken over by CSD and selling the same at various stas.
Induction of New Products

Distribution/Stock Management

a.       Distribution. To ensure timely availability of max items at each outlet, a comprehensive replenishment program exists; adequate stocks are maintained at local/outstation shops and Depots. To attain a comfortable financial flow, bare min stocks to cater for requirement of 15/20 days of sale are being kept at local and outstation Shops. Most of the stocks are delivered by suppliers directly at major shops and at Depots, thereafter bulk breaking is done for further distribution to smaller shops of far flung areas.
b.       Control of Losses. Stock taking of each shop is done on monthly basis. Besides, due to increased frequency of Surprise Stock Taking by the central team and effective mechanism, ‘NO’ case of theft/embezzlement has been found or registered during period July 2006 to date.
c.       Stock Management. The inventory is monitored, regulated and distributed as per demand at various locations.

d. Quality Management

CSD Management ensures procurement of best quality products for its customers. Quality of all products is ensured through fol means at the time of induction/procurement:-

Visual insps.
Cooking tests (where required for eatables).
Lab tests, where req through NIH and PCSIR labs.
Quality assurance tests of uniform cloth through ASIDs/ IAS&C.
100% physical checking and cleaning of all condiments of all pulses before packing through digital scales.

Various products are tested for Quality Con occasionally by own team as well as on receipts of complaints from customers. Items found of inferior quality are removed from shop racks and deleted from CSD list. Business is discont with firms providing inferior products.
CSD procures best quality grocery items for its clientele. It is ensured that quality is maintained through the period of validity of the contract (qtrly/yearly).

Promo / Media Activities. Selective / targeted promo and media activities, being one of the imp elms of any retail business, were carried out to disseminate info about CSD products, which has not only contributed in enhancing ‘Customer Flow’ but also raised it’s image. The activities were carried out in collaboration with various companies incl the fols:-

Lucky Draw Schemes, Free / wet sampling, give aways etc.
Free Service / tuning camps were arranged by team of professionals of Honda, Yamaha, Qingqi Motor Cycles at our outlets to facilitate CSD customers. During the year 1188 motor cycles were checked/serviced.
Promo through print and electronic media i.e. newspapers, selected magazines, Radio Commercials and local TV networks.
Promo materials i.e. brochures, banners, flyers, table calendars were also prepared in sp of our business activities.
In-store branding was also carried out in which CSD earned substantial amount. It incl renting out spaces, branding of store pillars, check out counters, cat signs and ‘Narrow Casting’.
CSD vehs were branded which acted as Mobile ad and contributed in dissemination / persuasion to a very large segment specially wherever, our Mobile CSD self service shops were sent to reach out to the isolated military population.
All About Life Style Exhibitions. To enhance CSD’s image/enlarge customer base and for nation wide introduction, CSD participated in ‘All About Life Style Exhibitions’ organized by Dawn Group at Convention Centre Islamabad on 1 & 2 Dec 2007, Fortress Stadium Lahore on 8 & 9 Dec 2007 and Expo Centre Karachi on 23-25 Feb 2008.

Inc in Trade Sale. Increase in variety of items on lower/competitive pricing, dynamic distribution / placement of products at our outlets supported with timely activity based Promo, contributed towards tremendous ‘Customer Flow’ at our outlets. Resultantly, it paved way for higher growth of our business. During FY 2007-08 sales inc by over 31% viz-a-viz the previous FY 2006-07.

Hire Purchase Scheme. CSD is running Hire Purchase Scheme for the welfare of Armed Forces Personnel. Under this scheme durable house hold items to include Cars, Motorcycles, Refrigerators, Deep Freezers, Televisions, Air Conditioners, Computers, Generators, Sewing/ Washing Machines, Fans and Bicycles etc are sold to troops on easy installments. This scheme is very popular amongst the Armed Forces Personnel being lucrative/soft terms and conditions. CSD Management makes sincere efforts to meet the ever increasing demands of entitled customers. To make the subject scheme more simple and customer friendly, CSD Management has taken number of measures. Some of these are as follows:-
a. Simplification
- HP Application Form has been revised/simplified and reduced to one page instead of previous 4 to 6 pages. The same is available on our website and can be downloaded.
- Requirement of surety has been reduced to one.
- Facility for deposit of HP applications at decentralized Business Centers and rectification of minor objections on the spot has been provided.
- Processing of HP Applications and delivery time has been reduced to a maximum of 72 hours as compared to the three months or more, previously.
- Purchase limit has also been enhanced from 10 to 15 gross salaries enabling troops to buy more items on easy installments.
- Decentralization. Previously all applications were received and processed at Head Office Level which took more time and added difficulties for the customers. Now this process has been decentralized by establishing HPBCs at various stations which is more effective.
- Establishment of Hire Purchase Business Centers (HPBCs). 34 x HPBCs with independent Telephone lines have been established at various stations to provide speedy information about HP Schemes, Issue /receipt of applications forms, receipts of Release Orders and issue of release items. Also attending to the queries/objections of customers.
- Customer Service Center. HP Customers Service Center (CSC) has been established which provides speedy access to information and resolution of complaints. Following main activities are being performed at CSC:-
- Receipt of Application forms.
- Case status query and objection handling.
- Issuance of Application forms, Retirement, No objection certificate and price list etc.
- Additional Benefits to JCOs and Soldiers. In order to extend more benefit to the entitled Persons CSD has revised the existing authorization/entitlement policy for HP items to all ranks as follows:-
- On greater demand from JCOs/equivalent ranks of PAF / PNS, purchase of cars up to 1000 cc under CSD HP Scheme has been allowed to them.
- Purchase limit has been increased from 10 to 15 gross salaries to enable troops to buy more then on installments.
- Complete Waiver of Dues for Shaheed/Deceased HP Members. Complete CSD waiver of dues in case of shahadat or unforeseen death of CSD HP members has been done purely on humanitarian grounds for the welfare of bereaved families.
- Remittance of HP Instls through Online Tfr: In order to finalize the customer account efficiently online banking system has been introduced, through all branches of Faysal Bank Ltd and designated branchs of HBL and MCB. Deposit Slips are available at each branch for deposit of down Payment / Installments.
Customer Feed Back.

Cards and Email received at HO are put up to MD immediately. In the light of MD’s remarks, complaints / suggestions given by the customers are investigated/dealt with properly and accordingly suitable reply is forward to the customers duly signed by the MD.
It has served the purpose of Promo, as interaction with customer through these cards / replies and telephone contact has built up confidence upon each other.
True feeling of customers reach to CSD Management through prepaid cards which help to evolve / improve their strategy / weak areas.
This serves as a check on the shop staff as they know that customers will forward the complaints / observations if they are not attended properly.