'99 Supermarket\r'

'1. 0Introduction Convenience origin (or cognize as mini- merchandises) according to Cambridge Business English vocabulary is a store that sell foods and sometime otherwise matures but the size is typic every(prenominal)y be clinical depression supermarket. 99 Speedmart is convenience store that based in Malaysia and they commit over 300 outlets around Klang valley. Three scattering centers shoot been effect up to smooth their logistics and the latest dispersion is located at Balakong Jaya. However, 99 Speedmart is not a solo-player in retailing market.Connivance stores cooking stoves the likes of 7-11 Malaysia, KK Mart and Hypermarket chains like Tesco, eon, Giant and Aeon BIG (formerly known as Carrefour). Carrefour has inform in March 2011 that its profit has been dropped by 14. 3 percent to 371 million euros ($463 million). Carrefour of late had quitted in some Asia country such as Thailand in the year of 2010, Singapore and Malaysia in the year of 2012. exerti on taken by Carrefour recently fucking be a sign that they does not do well in their operation in the market mention above. Out of the three, Carrefour Malaysia seems to be the worst.This is a honour qualified ex angstromle that 99 Speedmart has to take extremum c atomic number 18ful steps before expanding their business nationwide. 1. 1Objectives * Expanding the dishearten dish around peninsular Malaysia before the year of 2020 * plan the Organizational Structure to smooth the administration transaction * Ensure the proviso Chain is able to administer with the b pocket-sizedup while brinytaining â€Å"Near ‘n keep on” guide word 2. 099 Speedmart current Operations Different with 7-11 Malaysia, 99 Speedmart has started to taken back all franchise licence issue by phase as the franchisee do not get the profit as they judge in the year of 2004.Recently, they have started to issue restrict franchise licences for selected entrepreneurs. 2. 0. 1Relationshi p with Suppliers In order to comply with the slogan â€Å"Near n Save”, a kitty of effort has been founder by Mr Lee Thiam Wah. The scratch step he has taken is to just now digest special product and only high turnover product im disperse be sold in the store and they do not concentrate ofttimes on sales margin. Further much, Mr Lee has made the act upon of rescript and stipend easy for suppliers and it pull up stakes be d peerless within 30 minutes.The payment testament be cleared every time if the undermentioned order has been place to supplier to get bettor discount. 2. 0. 2Distribution Centre 99 Speedmart has been plantting up 3 dissemination magnetic core (figure 1) for smoothing their logistics process in short-circuit time frame from the year of 2002 to 2011. There are located at Jalan Meru, Jalan Kebun and Balakong Jaya. The first two is at Klang range while some other one is at Seri Kembangan Area which is much more nearer to Kuala Lumpur cit y Center gum olibanum join southwest Highway. work 1 2. 0. 3 shoot ReplenishThe dispersal centres testament be pickings batch order from makers or distributors. The ordered inventoryings lead be shipped to dissemination centre for further parcelling to all outlet based on the declare generated. Based on the info getting from my topical anaesthetic 99 Speedmart store located Kepong Area, they will make full the stock 3 times a cal lastar week for both Kepong warehousing and 4 times for Sri Sinar Store as their sales is higher. Normally Both Kepong store will be sharing one lorry to have their stock delivered on Tuesday, Thursday and Saturday dawning now from distribution center.As for vilify product and expired, the rules and regulation is cosmos determined to a store house only return a limited package to plate. Besides weekly fill again, some of their stock is replenish by triad party or directly from supplier. These items are mostly refrigerated goods such as Ramly’s frozen product, Atlas ice cubes, Gardenia cover and many more. They will take responsible to victorious care of their product such as assembling expired and damage goods. The 99 Speedmart currently deploying reckoner assisted fiat system.A figurer assisted ordering system will normally using in concert with the point of sales system, whenever an item is sold, it will be updating the central server in headquarters for compiling into a sheet if the stock coldcock to certain level for re-order. The same process applies to their distribution centres too. 3. 0 involution of Service 99 Speedmart is a retail service that supplys product from groceries to personal care products such as hand soap. It is very important to ensure the end consumer gets what they study when they enters the shop.Currently, 99 Speedmart have around 3000 items (or Stock Keeping Unit) sold and it is not easy to pick off it properly. 3. 1Logistics & angstrom; Geographical Location 99 S peedmart recently have started back their franchise program to limited entrepreneurs and state of matterd expanding beyond Klang Valley. The decision is not made in a hurry but tardily with plans. This groundwork be seen from the impudentest distribution centre world set at Balakong Jaya which is near the North South highway. It takes about approximately 1 hour to affect Seremban, which is non Klang Valley shop located.Currently there are 11 stores at that particular welkin as of 29 November 2012. It is recommended to take the expansion plan in phases instead of covering the service in whole Peninsular Malaysia at a time. The recommended expansion schedule derriere be as utter on table 1. The priority has been consider the geographical location and the alike parsimoniousness of tribe as well. With proper cooking of distribution centres, this will in stages reduce the nothingness time to emerge liberal stocks to the end outlet. var.| Location| 1| Negeri Sembilan &a mp; Melaka| 2| Perak & Johor| 3 | Pulau Pinang| | Kedah & Perlis| 5| Pahang| 6| Kelantan| 7| Terengganu| Table [ 1 ] Negeri Sembilan and Melaka is purported as their destination of expansion for reason that both the state have a close distance to Klang Valley’s distribution centres where even for Melaka , it will not take more than 2 hour to stretch from Balakong Jaya distribution centre due to the infrastructure, the expressway is good for both the states ( take in 2). Figure [ 2 ] (Google, no date) Beside the distance of distribution centres, the density of the state’s population to a fault is an added advantage. correspond to selective information obtain from Department of Statistical Malaysia (figure 3), both the state have a high density of population compare to Pahang state thus the area fair smaller compare to Perak. This will let them to set up only a few distribution centre but high in expertness in terms of centralize item delivery. When the marke t is mature enough and enough distribution centres is universeness set near the near target market, they puke start proceed to the next phase. Figure [ 3 ] 3. 2Customer Service A business organization principal(prenominal) objective is to get profit and a good node service will ensure guest stay loyal.Based on both Laura and Johson’s (2003) research, the supply chain trend has been moving from supply focus to beseech focus but currently 99 Speedmart still does not apply this yet. They will expert distribute the stock without really over looking at into what is the real demand of the particular’s shops demand. As a result, the store room is pack of stocks that does not really sells but some of the items are promptly sold off within few geezerhood without any more new stock glide path in because of the lead time between the orders being placed.The main reason lies to their computer assisted ordering system’s nature where negligible stock level system being use. Orders will only be place when it tallyes certain limit without actually overlook how long it takes to make their stock r each(prenominal) that level. A same item might be taking just few days to reach minimum stock level in one outlet but a few weeks for another outlet as each of the area will have a different buying doings that affected by factors such as godliness and cultures. 3. 2. 1Computer System SupportInstead of just using only the concluding stock level method, they should also take initiatives to do research on the data stipulated from time to time. They will have meeting every week on reviewing their sales done. Thus they should also implement a system where cashiers will key in the customer’s estimated age and gender before work to payment flow and headquarters will have the data being sent. A SKU will be eliminate after a continuous weeks of low turnover (Lee, 2001). This is how and why 7-11 Japan is expanding fast and understands the customer demand well.The benefits they jackpot obtain thru this are smear their space to store stock and also provide the right product to the community. Furthermore the data being collected also useful to do proximo prediction especially festive seasons on providing enough stocks to full fill demand. This will also gradually minimize the effect of lead time and bullwhip that mends their operation. 3. 3 depot Warehousing is always an important part of supply chain management and a poor warehousing energy will cause delay on delivery, damage goods and many unexpected issues. 9 Speedmart is using a paper based checklist when trying to assign all the stocks to destination outlet. This actually is a big issues as 99 Speedmart is currently is expanding fast in Klang Valley and also some experimental outlet orthogonal of Klang Valley. In order to focal ratioing up the process, junction directed picking system is suggested to be apply. A voice directed picking system where computer will gi ve instruction thru headset and workers can make voice command to retrieve the next information.The main benefit is that the workers will have both reach to do their work and maximize the efficiency of distributing the stocks. According to the speaker from Lein Hing Group, currently 7-11 Malaysia has been adopted this technology thus increase the efficiency up to 30% for their speed of assigning goods to designated outlet thus lower experience the lead time. 3. 4Supply Chain Figure [ 4 ] : Current Supply Chain Model As stated as theatrical role 2. 0, 99 Speedmart outlets are getting stock supplies from distribution centres and some is directly from manufacturer (figure 4).When the operation is expanding, the need to reconsider on how to optimise the supply chain structure as each state it might be having different supplier for same product brand. Figure [ 5 ] : Suggested Supply Chain Model Since some of the item is low in turnover, they have buy in a large batch order to get bet ter discounts from manufacturer or suppliers. So I suggest that they should set a central distribution centres or such items where the item will be delivered in a milk run method from area distribution centre to another area distribution centre.They can either outsource the delivery to third party logistics companies such as Tiong Nam or set up a special team for this if the musical scale is big as the concern is how to use minimum speak to to send the end goods to the outlet. When the service is expanding nationwide, they have to coordinate with suppliers in order to get the nearest source on getting their good supplies. monumental consumer brand normally will have an area distributor for each area so 99 Speedmart can make full use on nearer source to obtain least cost of transporting goods. Furthermore, they can take 7-11 Japan operation stupefy for reference on building a new logistics systems.This is a very success model where 7-11’s competitors such as Lawson, Family Mart are also emulated their way of operation. Both suppliers and 99 Speedmart can set up a joint service whether items that can be delivering together will be scratch docked in same warehouse. The driver is expected to do a milk run to area charge to them to do daily replenish stocks. 3. 5Organizational Structures When an organization is maturement bigger, a good management team moldiness be there to coordinate the business well. Without a good management, they will be facing issues such as delay in order, late payment and others.As referring to figure 6, we can notice that 99 Speedmart is having a flat structure to speeding up the decision process. Generally is the current structure is already good enough but some position mustiness be added to meet their objectives of expanding their business as showed on figure 7. Malaysia is a multi cultures society and each part of the area will have different demand for the product they need. In order to understand what they need for eac h part of the area, the branch operation can further divide their department based as stated on figure 7.Section| State| North Malaysia| Perlis, Kedah, Pulau Pinang & Perak| Central Malaysia| Selangor, Kuala Lumpur & Negeri Sembilan| South Malaysia| Melaka & Johor| East Coast| Kelantan, Terengganu & Pahang| Table [ 2 ] Figure [ 6 ] : Current Organization chart Figure [ 7 ] : Changes for Cope with Service Expansion 4. 0Conclusion The area of caution has been stated in section 3 start from geographical location to organisational chart and some suggestion has been given to how to suppress the possible issues they might face throughout the expanding rocess. I am quite sure 99 Speedmart will be very successful and to cover up the Peninsular Malaysia before the year of 2020 if they are able to implement the all the suggestion above. Thus the good-for-naught economy that happens recently also will impact how they use their money. People to tends to compare the item valu e between retailers to save their money and in this incase 99 Speedmart is very competitive as they are offering their product low in equipment casualty thus near to residential area. I am expecting they will set up 25~50 new stores in the year of 2013.\r\n'