Posted: February 15th, 2022
Logistics for Facility Location of 7-Eleven in Kelantan
Logistics for Facility Location of 7-Eleven in Kelantan
7-Eleven was founded in 1927. It is the biggest convenience store in Malaysia, giving its customers what they want, when, and where they want then. 7-Eleven specializes in retail, convenience, franchise, jobs, international, licenses, foods, and beverages (Baker et al., 2020). Facility location is appropriate for a facility with favorable access to customers, labor, and transport infrastructure (Ortega et al., 2020). This paper will discuss the facility location logistics for a 7-Eleven.
7-Eleven operates globally and is considered a significant factor in setting up its location. Factors include the availability of infrastructure, labor, government policies, cost, and environment (Kulshreshtha et al., 2020). Accurate facility logistics for the 7-Eleven retail store ensures easy access to customers, the best transport infrastructure, and the availability of skilled labor in Kelantan.
7-Eleven uses simple strategies to determine the best location for its stores, which considers the various factors that should be considered when choosing a facility location. It was essential to consider the accessibility of the store by the customers, suppliers, and producers. Purchase of foods and drinks is often significant in areas with high population density. The store relies on high customer traffic, which they considered and ensured that it is accessible by cars and even buses (Holguín-Veras et al., 2020). A good location is significant in recruiting the right personnel into the business.
7-Eleven is located in a secure place in Kelantan. Stores located in a secure area have reduced the odds of crime (Foster et al., 2021). The area’s safety has made it a store of choice for the people of Kelantan. The safety of the stores attracts more customers, which increases the store profits.
Another factor that has seen the growth of 7-Eleven is the absence of other significant stores that can compete it Kelantan. According to Crick (2019), proximity to competing businesses can either benefit or hinder its growth. Knowing the type of competitors in your area helps determine the right location for a facility. Too much competition may be a warning sign to expand your business in new regions.
In Kelantan, the presence of a skilled population has favored the growth and operations of 7-Eleven. Skilled employees are the biggest asset of any firm (Kurdi & Alshurideh, 2020). In choosing a location for a facility, a location that lacks the requisite skills may be the path to the organization’s downfall. You can determine the caliber of employees by posting free jobs online and using recruitment agencies.
The business rates determine the viability of a business to survive and cater to its expenses. Before setting up a facility, it is essential to research the average business rates with interest in taxes, rent, and utility bills to ensure that the premises are affordable. There are hidden costs in setting up a facility; they include deposits or paying for parking space, which will affect the business’s survival as additional parking space may discourage customers who have vehicles from visiting the store (Pas et al., 2020). By estimating the living cost of Kelantan, 7-Eleven has prevented the commitment outside its means. The store even has a parking space for the buyers.
Kelantan provides a potential for the growth of 7-Eleven stores. It is essential to consider if the store’s premises can accommodate the growth of the business or a surge in demand that sees an increase in the number of daily customers. It is essential to decide the store’s duration term (Tran‐Duy et al.,2019). The flexibility of a location is essential regarding the suitability of your business needs.
In conclusion, setting a location for a facility depends on several factors which can either build or destroy the business when not correctly considered. The success and growth of 7-Eleven are attributed to the factors. Every starting business should adequately evaluate facility siting logistics.
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Holguín-Veras, J., Leal, J. A., Sánchez-Diaz, I., Browne, M., & Wojtowicz, J. (2020). State of the art and practice of urban freight management: Part I: Infrastructure, vehicle-related, and traffic operations. Transportation Research Part A: Policy and Practice, 137, 360-382.
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