7 Eleven - Essay

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 of different ways that a convenience store supply chain can be responsive? What are some risks in each case? Based on the practices of Seven-Eleven Japan, the authors have compiled a few techniques which they believe can reasonably increase the responsiveness of the supply chain, as well as their corresponding risks: * Rapid replenishment of goods This is a fairly basic approach to responsiveness, but one which must not be underemphasized. The rapid replenishment of goods in the supply chain is key to achieving a flexible selection of products for the customers, since the store is not constrained to bulk orders which they need to finish or dispose of even though the demand for it is no longer strong. This is particularly very important for the nature of convenience stores, since shelf space is vital to them. Convenience stores are not very big as compared to their supermarket counterparts; hence, they cannot carry bulk inventories nor can they afford wasted space. If a convenience store wished to accommodate a wide variety of products which cater to the needs of their customers, then they have no other choice but to order in small quantities and resupply often. There are some risks that come, however, with a rapid replenishment strategy. Convenience stores always run a greater risk of stock-outs due to a number of reasons. Of course, there is always the possibility that suppliers are not able to deliver on-time due to unforeseen circumstances. However, even with suppliers being on-time, an inefficient distribution system will also prolong the stay of products within the supply chain which could inevitably lead to delays in landing time. Lastly, there is also the risk of wrong product forecasts. Of course, some forecasts within the span of the business are bound to be incorrect at some point, but with a rapid

Bibliography: Wulfraat, M. (2012). Direct Store Delivery Versus Centralized Distribution. Retrieved June 16, 2012, from MWPVL International Supply Chain Experience: http://www.mwpvl.com/html/dsd__vs_central_distribution.html Rapp, W. and M. Islam (2003). "Putting E-Commerce to Work: The Japanese Convenience Store Case." The New Jersey Institute of Technology. from http://web.njit.edu/~rappw/C-106.pdf. Seven-Eleven (2004). "Seven-Eleven Japan Sustainability Report 2004." Seven Eleven Japan. from http://www.sej.co.jp/mngdbps/_material_/localhost/pdf/company/en/env_repo2004_e.pdf.