Ministop
Supply Chain
Material and information flow
Location Planning
A location analysis for new stores considers population density, demographics, traffic volume, visibility, ease of access, locations of other stores, and economic and competitor activity in an area.
Problems of Processes/System
Sub-optimal distribution process , on-time delivery not achieved
Out of stock situation
Franchisees complained about Ministop putting up another store near their location which eats up a portion of their daily sales.
Out of the 50 managed stores, only half are making money, with the other half either breaking even or losing money. Contract pre-termination are very common among losing franchisees.
Poor use of Point of sales information management system
Management’s Proposed Solution
Launch an aggressive expansion program to increase its number of stores by 80-90 per year. Ministop management believed that it will deliver desired earnings if it’s 200-store mark. Unfortunately it didn’t.
Possible Solutions
Rapid replenishment: to set up rapid replenishment and supply the stores what they need and when they need it and provide visibility at the store level to improve stock management thus reducing out of stock situation.
Providing greater convenience to customers and service
Methodology
The analysis was mainly conducted through observation and related articles.
Things to Consider
The Company should always study the customers’ changing needs and expectations in making plans for products and services. The marketing team continuously attempts to search and select products and services that are of high quality, are different from those of the competitors, can satisfy the demands of different target groups, and are in line with new trends and market changes.
Conclusion
Material and information flow
Location Planning
A location analysis for new stores considers population density, demographics, traffic volume, visibility, ease of access, locations of other stores, and economic and competitor activity in an area.
Problems of Processes/System
Sub-optimal distribution process , on-time delivery not achieved
Out of stock situation
Franchisees complained about Ministop putting up another store near their location which eats up a portion of their daily sales.
Out of the 50 managed stores, only half are making money, with the other half either breaking even or losing money. Contract pre-termination are very common among losing franchisees.
Poor use of Point of sales information management system
Management’s Proposed Solution
Launch an aggressive expansion program to increase its number of stores by 80-90 per year. Ministop management believed that it will deliver desired earnings if it’s 200-store mark. Unfortunately it didn’t.
Possible Solutions
Rapid replenishment: to set up rapid replenishment and supply the stores what they need and when they need it and provide visibility at the store level to improve stock management thus reducing out of stock situation.
Providing greater convenience to customers and service
Methodology
The analysis was mainly conducted through observation and related articles.
Things to Consider
The Company should always study the customers’ changing needs and expectations in making plans for products and services. The marketing team continuously attempts to search and select products and services that are of high quality, are different from those of the competitors, can satisfy the demands of different target groups, and are in line with new trends and market changes.
Conclusion