Convenience store (or known as mini-markets) according to Cambridge Business English Dictionary is a store that sell foods and sometime other goods but the size is typically below supermarket.
99 Speedmart is convenience store that based in Malaysia and they have over 300 outlets around Klang Valley. Three distribution centers have been set up to smooth their logistics and the latest distribution is located at Balakong Jaya.
However, 99 Speedmart is not a solo-player in retailing market. Connivance stores chains like 7-11 Malaysia, KK Mart and Hypermarket chains like Tesco, Aeon, Giant and Aeon BIG (formerly known as Carrefour). Carrefour has reported in March 2011 that its profit has been dropped by 14.3 percent to 371 million euros ($463 million). Carrefour recently had quitted in some Asia country such as Thailand in the year of 2010, Singapore and Malaysia in the year of 2012.
Action taken by Carrefour recently can be a sign that they does not do well in their operation in the market mention above. Out of the three, Carrefour Malaysia seems to be the worst. This is a good example that 99 Speedmart has to take extreme careful steps before expanding their business nationwide.
* Expanding the Service around Peninsular Malaysia before the year of 2020 * Redesign the Organizational Structure to smooth the administration work * Ensure the Supply Chain is able to cope with the expansion while maintaining “Near ‘n Save” slogan
99 Speedmart Current Operations
Different with 7-11 Malaysia, 99 Speedmart has started to taken back all franchise license issue by phase as the franchisee do not getting the profit as they expected in the year of 2004. Recently, they have started to issue limited franchise licences for selected entrepreneurs.
Relationship with Suppliers
In order to comply with the slogan “Near n Save”, a lot of effort has been made by Mr Lee Thiam Wah. The first step he has taken is to only carry limited product and only high turnover product will be sold in the store and they do not focus much on sales margin. Furthermore, Mr Lee has made the process of ordering and payment easy for suppliers and it will be done within 30 minutes. The payment will be cleared every time if the next order has been place to supplier to get better discount.
99 Speedmart has been setting up 3 distribution centre (figure 1) for smoothing their logistics process in short time frame from the year of 2002 to 2011. There are located at Jalan Meru, Jalan Kebun and Balakong Jaya. The first two is at Klang area while another one is at Seri Kembangan Area which is much more nearer to Kuala Lumpur City Center thus North South Highway.
The distribution centres will be taking batch order from manufacturers or distributors. The ordered stocks will be shipped to distribution centre for further allocation to all outlet based on the report generated.
Based on the info getting from my local 99 Speedmart store located Kepong Area, they will replenish the stock 3 times a week for both Kepong Store and 4 times for Sri Sinar Store as their sales is higher. Normally Both Kepong store will be sharing one lorry to have their stock delivered on Tuesday, Thursday and Saturday morning directly from distribution center. As for damage product and expired, the rules and regulation is being set to a store can only return a limited box to headquarters.
Besides weekly replenish, some of their stock is replenish by third party or directly from supplier. These items are mostly refrigerated goods such as Ramly’s frozen product, Atlas ice cubes, Gardenia Bread and many more. They will take responsible to taking care of their product such as collecting expired and damage goods.
The 99 Speedmart currently deploying computer assisted ordering system. A computer assisted ordering system will normally using together with the...
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