Supply Chain - Seven Eleven Case
1. A convenience store chain attempts to be responsive and provide customers 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?
Some of the ways that a convenience store chain can response are: * Focusing in the total cost of the supporting a chain, that includes all the elements of cost that go into a purchase like order quantities, deliveries, warehousing, support systems, among others.
The risk of this approach is not giving the appropriate amount of profit to the products and services, because focusing in the amount of costs this kind of business will generate. * Controlling the number of deliveries from other companies (vendors) to your store. The risk here is by controlling the number of vendors you are taking the risk of been out of stock and not fulfilling the demand. * Creating a distribution center is one of the best ways to reduce costs, and also control their own supply chain.
The risk of this method is that initiating a distribution center is expensive, if your chain has not made the idealize amount of profits this approach is very risky, because this method requires structure, employees, machines, among other expenses.
2. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated its supply choice?
The risks with this supply choice are high cost of transportation which includes gas, vehicle, staff, also the cost of receiving continues incomes of products at the store, the risk of having obsolete inventory and lack of extra space. 3. What has Seven-Eleven done in its choice of facility location, inventory management, transportation and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
By creating a distribution center and making all suppliers
Some of the ways that a convenience store chain can response are: * Focusing in the total cost of the supporting a chain, that includes all the elements of cost that go into a purchase like order quantities, deliveries, warehousing, support systems, among others.
The risk of this approach is not giving the appropriate amount of profit to the products and services, because focusing in the amount of costs this kind of business will generate. * Controlling the number of deliveries from other companies (vendors) to your store. The risk here is by controlling the number of vendors you are taking the risk of been out of stock and not fulfilling the demand. * Creating a distribution center is one of the best ways to reduce costs, and also control their own supply chain.
The risk of this method is that initiating a distribution center is expensive, if your chain has not made the idealize amount of profits this approach is very risky, because this method requires structure, employees, machines, among other expenses.
2. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated its supply choice?
The risks with this supply choice are high cost of transportation which includes gas, vehicle, staff, also the cost of receiving continues incomes of products at the store, the risk of having obsolete inventory and lack of extra space. 3. What has Seven-Eleven done in its choice of facility location, inventory management, transportation and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
By creating a distribution center and making all suppliers