Essay About Subsequent Delivery And Better Products Quality

Why Has 7-Eleven Chosen off-Site Preparation of Fresh Foods and Subsequent Delivery to Stores?
2.Why has 7-Eleven chosen off-site preparation of fresh foods and subsequent delivery to stores? Since fresh foods constitutes of significant portion of 7-Eleven sales, decision to prepare them off site guarantees better products quality, reduces transportation costs and ensures effective product delivery to retailers through its very efficient delivery system that benefits both high service level as well as efficient delivery in terms of time and quality. Far more reasons for 7-Eleven to choose the off-site preparation of products are as follows:Quality of the productIncreases speed and quality of deliveryLow transportation costsOptimizes resource utilizationLow inventory maintenance costsReduction of lead timesEfficient transportationSupply made upon requestBest match of supply and demand3. Why does 7-Eleven discourage direct store delivery from vendors and make an effort to move all the products through combined DCs? Aiming at delivering fresh and quality products, 7-Eleven discouraged direct store delivery from vendors (DCD) and utilized all its products delivery through combined distribution center (CDC). Due to the variety of stories with different particular orders, combined distribution system allowed products from different vendors to be loaded on the same truck for delivery to stores and thus enabled 7- Eleven to substantially reduce inventory, labor as well as transportation costs. Moreover, combined system ensured reduction of order sized for each of the product and shorter replenishment cycle time for quick response. 7-Eleven benefited from combined distribution system by:Costs efficiency;High flexibility and efficiencyEconomies of scale for the outbound transportationMore efficient overall supply chain: By reduction of number of vehicles for daily delivery (from 70-11)By reduction of delivery costsRapid delivery of variety of fresh foodsFresh and high quality productsTemperature – separation of foodsProduct differentiationHigh fill rate with high flexibility and efficiency