1. Responsiveness known as the supply chain ability to respond within a proper timeframe towards customer demand or changes in the market. There are several ways for convenience store in order to show their responsiveness to customers as done bySeven Eleven Japan as follow:• Increase the number of distribution center, vendor, or stores in potential location in order to expand the market and be able to fulfill more customer needs.
Moreover, more facilities would likely reduce the distance of customers into the stores which will increase the visiting frequency of customers into the stores. High cost investment and maintenance cost to build and maintain all the stores werethe risk for this decision.• Create rapid replenishment (delivery capacity) to meet more customer demands.Despite the high cost for transport with larger capacity, there are others additional cost for loading and docking. Another risk is the probability of uncertainty will increase if the delivery products in huge capacity is kind of foodor beverages which need special treatment and easily going stale.
• Increase the number of inventory at desired Stock Keeping Unit so the products status will always available. Even though this method is quite helpful to maintain the products stocks but the inventory cost is quite high and it needs extra space of warehouse which may also have a bad impact if the products were keptis a seasonal products or customer will only seek these product on specific situation. • Develop an integrated information system between stakeholders (vendor, distribution center, store manager, customer) to make the information flow process become faster and more efficient. Uncertainty will possibly occur if there is any technical problem on the network or the user which lead to incompatibility of demand and supplies.2.
Micro-match supply and demand strategy using rapid replenishment that Seven Eleven Japan attempt were done within a timeframe with the number of delivery that has been set by default based on forecasting analysis conducted previously. The risk occurs if there is a forecasting error and communication error which makes demand and supplies are not matched. These problems will make inventory excesses orshortages occur.
For instance, if suddenly there is high demand occur from a group of tourists on holiday season which possible to reduce the stores stock drasticallywhile the replenishment schedule is still need to wait at the time, which result tothe products availability for other customer.Another problem arises if the shipping time were delayed which cause massive complaints from customers as the effect of unsatisfied service and also the next shipping schedule will be chaos.3. Seven Eleven Japan choices will be explained briefly below:• Facility LocationExpansion policy with market dominance strategy where Seven Eleven stores Build around a cluster consist of 70 to 80 different stores supported by a distribution center and able to fulfill huge number of customer surrounding. The stores location that close to each other will make the shipping facility (such as truck) easier to deliver each stores order.
• Inventory ManagementSeven Eleven has a rapid replenishment cycle since it is controlled by customers demand or order. There are only few products stored in the warehouse. The rest of products are foods and beverages which needs to be delivered immediately so that the products will still fresh until customers receive the products.
There are also seasonal products that needs to deliver directly by suppliers into Seven Eleven stores through distributor because if it stored in the warehouse for too long, it will pass the specific season which makes the product will not be salable anymore.• TransportationSuppliers provides the products after receiving order from integrated store information system. After going through manufacturing process, the products will bedelivered to distribution center based on the daily, weekly, or monthly schedule