Convenience Store Supply Chain - 7-Eleven

1, There are several ways to lead the convenience store supply chain be responsive:

 Increase facilities( increase location)

Set up several stores in same region that can make the customers gain more accessibility.

Risk: having too many stores in one region will dramatically increase the operation cost and reduce efficiency.

 Keep high inventory level

Stock large amounts and greater varieties of products at all stores to satisfy the customers' preferences.

Risk: having more varieties of goods in store can meet the uncertain demand; however, it will cause wastage. Besides, holding high inventory level will increase the cost and make the store less efficient.

 Quick replenishment of products

Supply the stores with products what the customers need when they need them. This allows the stores keep low inventory level.

Risk: too frequent replenishment will increase the cost associated with transportation also increase the supply chain cost.

 Using high-tech information system

It can increase responsiveness and decrease the other driver cost too e.g. transportation cost, holding cost etc.

Risk: The entire supply chain rely on the information system too much will cause the operation problems if network failure.

 Increase capacity

The convenience stores can provide local cooking and assemble foods almost on demand and other kind of self-serve facilitator.

Risk: it will increase the operation

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