What Are the Key Challenges Facing the Retailer? Provide Alternatives for Overcoming These Challenges. Key Challenges: the Big China Store (Bcs) Business Is Operationg Convenience Stores in Greater Beijing .the Major

1. What are the key challenges facing the retailer? Provide alternatives for overcoming these challenges.

Key challenges: The Big China Store (BCS) business is operationg convenience stores in greater Beijing .the major challenges are

1. to triple the number of stores,with the challenge being to obtain suitable retail sites (not the difficulty in finding a suitable site for DC)

2. List BCS on the stock exchange

3. Work with Lott Global to get the central DC and the WMS working effectively

4. Centralized ordering –new staff;build buying expertise;overcome resistance from current store manager(lots of change management required)

Some approaches to the challenges could be:

1. obtain sites in other cities and towns ,although logistics costs will increase(service levels could also be affected)

2. obtain private investment in place of a public listing

3. Have short term(weekly?)objectives for implementing the DC and WMS operations.The challenge is the time to map out the DC process.RFP development and implementation.

4. Project planning expertise required.Recruit staff with potential ,not entrenched ‘bad habits’Meet short term oobjectives –but modern logistics concepts is relatively new in china.so the talent pool of knowledgeable logisticians is insufficient

2. From the perspective of Lott Global, what are key success factors for this project?

The main success factors are:

1. To enter into the seven year contract with BCS on reasonable terms

2. Sell the success with BCS to win contracts with other Chinese owned and managed companies

The immediate success factors are:

1. Get the central DC and the WMS working effectively

2. Hire/contract a software development team

3. Train the warehouse staff

4. Implement the warehouse performance measurement system-the companies are considering about 20KIPs to monitor the operations –with that number will be difficult to identify the critical measures?

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