A convenience store sequence can improve responsiveness to the uncertainty making use of the following strategies, especially for new and junk food: Local Potential. The convenience retail outlet chain provides local cooking food capacity on the stores and assemble foods almost upon demand. Inventory would be kept as uncooked material. This is certainly seen in the U. H. fast-food restaurant franchise Subway where dinner and lunch break sandwiches will be assembled in demand. The main risk with this approach is the fact capacity can be decentralized, resulting in poorer usage. Local Products on hand. Another approach is to have the ability to inventory sold at the store at all times. This allows for the centralization of cooking capacity. The main risk is obsolete products on hand and the dependence on extra space. Rapid Renewal. Another procedure is to create rapid renewal and supply the shops with what they need when they require it. This allows to get centralization of cooking ability and lower levels of inventory, but enhances the cost of replenishment and receiving.
The main risk for Seven-Eleven is a potentially high cost of transportation and receiving at retailers.
Seven-Eleven does not allow immediate store delivery in Japan but features all products flow through its circulation center to minimize the number of cars required for daily delivery service to each store, even though the delivery frequency of each item was quite high. In the distribution centre, delivery of like products from several suppliers was directed into a single temperature handled truck. Every truck produced deliveries to multiple retail stores. None with the distribution centers carried virtually any inventory; that they merely transferred inventory via supplier trucks to Seven-Eleven distribution vehicles. This drastically reduced delivery costs and enabled quick deliver of a variety of fresh foods.
Direct store delivery is more suitable when the retail store only buys from some manufacturers/suppliers, so when the items happen to be...