Essay About High-Density Areas1 Distribution Center And Convenience Store Chain

Seven Eleven Case Study
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Responses         The convenience store chain can be responsive in below ways by reducing lead timeAnalysis of daily data for every retail store and each SKU enabling forecasting and turnover rate to reduce replenishment timeReal-time data flow at POS, suppliers, and distributorsStronger supplier base and relationship with the suppliersRisks associated:Data congestion due to the large volume and incorrect usage of dataServer breakdown and data manipulation by hackersRisk due to natural calamities if suppliers are in the same compound         Risks due to Seven Eleven’s supply chain strategyDepending too much on information systemsAbsence of warehouseCalamity or labor unrest at the supplier would lead to stock out the situation in storesFacility locationMarket presence in high-density areas1 distribution center catering around 60 storesInventory managementThe absence of inventory due to cross-dockingMicro matching between supply and demand helping increased responsivenessTransportationDelivery during off-peak hoursThe dedicated vehicle for each categoryDelivery using scanner terminalsStore allotment per truck dependent on sales volumeInformation infrastructureScanner and graphics terminalsPOS linked to store computerStore computer linked to ISDNAdvantages of the current systemProducts assorted as per required temperature at distribution center reducing perishabilityReduced number of vehicles for daily delivery from 70 to 11 Reduced delivery costsReliable and rapid delivery of fresh foods making chain responsive Appropriate direct store deliveryManufacturers and retailers are very closeLead time criticalDemand from a retailer is high enough to require FTL7Dream.com concept[pic 1]The US vs JapanStores in Japan – 10615Stores in US – 5798Japan will be more convenient depending on proximity and number of storesTransportation cost in the US will be more as the distribution center is different and consumers prefer home deliveryStore density area ratio is more in Japan than in the US, making it inconvenient for US customers to pick up from stores6.ProsConsIncrease in responsivenessProduct assortment will occur at the store thus increase in timeIncrease in variety of fresh productsIncrease in labor costReduction in stock outIncrease in cost for CDCIncrease in the distribution network and support to storesHigh coordination required between distribution center, wholesalersReduction in lead time for fresh products