1. A convenience store chain attempts to be responsive and provide customers with what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?
Supply chain has several abilities to cope with the uncertain condition of the environment. Those abilities are respond to wide ranges of quantities demand, meet short lead time, handle a large variety of products, build highly innovative products, meet a high service level, handle supply uncertainity. To face the uncertainity of the environment, the responsiveness of convenience store chain can be improved. There are some ways to improve the responsiveness, which are:
• Develop a local …show more content…
But the risk is the store has to create a large room for the inventory.
• Create a rapid replenishment
In rapid replenishment, the convenience store issue an order to re-stock the required items for a specified time and for a specified quantity. This strategy means that there are a centralization and the inventory space can be reduceed to minimum. But, the drawback is the cost for the rapid replenishment is huge.
From the case study, Seven Eleven choose the rapid replenishment to improve their responsiveness. For example, a Seven Eleven store into a new market by building around a cluster of 70 to 80 stores supported by a distribution center. As said before, this strategy has lots of advantages, from maximizing the distribution and system efficiency, prevent competitors’ entrance into the dominate area, and etc. It can support to the responsiveness of the supply chain from the point of short lead time. But, it may increase the cost of infrastructure as well as the management cost.
Another way is to expand the services, such as different payment forms, bill payment services (gas, electricity, insurance premiums and telephone), or being a picking up station for parcel …show more content…
Unlike Japan, US has a much larger country size (9,833,517 square feet compared to Japan’s 377,915 square feet) which resulted in a lower density of population even though US has larger population than Japan. If Seven Eleven US still wanted to increase their responsiveness by establishing stores nearby the housing area, they couldn’t follow the same supply chain structure. Because the benefit of setting up a cluster of stores that was supported by a CDC will be not as significant as Seven Eleven Japan done. The main factors are the distance between each store and also the fact that some of the replenishment of the stores are still done through direct store delivery by manufacturers and
Supply chain has several abilities to cope with the uncertain condition of the environment. Those abilities are respond to wide ranges of quantities demand, meet short lead time, handle a large variety of products, build highly innovative products, meet a high service level, handle supply uncertainity. To face the uncertainity of the environment, the responsiveness of convenience store chain can be improved. There are some ways to improve the responsiveness, which are:
• Develop a local …show more content…
But the risk is the store has to create a large room for the inventory.
• Create a rapid replenishment
In rapid replenishment, the convenience store issue an order to re-stock the required items for a specified time and for a specified quantity. This strategy means that there are a centralization and the inventory space can be reduceed to minimum. But, the drawback is the cost for the rapid replenishment is huge.
From the case study, Seven Eleven choose the rapid replenishment to improve their responsiveness. For example, a Seven Eleven store into a new market by building around a cluster of 70 to 80 stores supported by a distribution center. As said before, this strategy has lots of advantages, from maximizing the distribution and system efficiency, prevent competitors’ entrance into the dominate area, and etc. It can support to the responsiveness of the supply chain from the point of short lead time. But, it may increase the cost of infrastructure as well as the management cost.
Another way is to expand the services, such as different payment forms, bill payment services (gas, electricity, insurance premiums and telephone), or being a picking up station for parcel …show more content…
Unlike Japan, US has a much larger country size (9,833,517 square feet compared to Japan’s 377,915 square feet) which resulted in a lower density of population even though US has larger population than Japan. If Seven Eleven US still wanted to increase their responsiveness by establishing stores nearby the housing area, they couldn’t follow the same supply chain structure. Because the benefit of setting up a cluster of stores that was supported by a CDC will be not as significant as Seven Eleven Japan done. The main factors are the distance between each store and also the fact that some of the replenishment of the stores are still done through direct store delivery by manufacturers and