ESSAY OF BEST PRACTICE OF COMPANY IN MALAYSIA
The 99 Speedmart’s provide daily and useful products and the top management are
embracing lean supply chain approach in their business. A lean supply chain defines how
a supply chain should operate well by reducing or eliminating waste and non-value added
activities. It is important to take into consideration the right supply chain approach in order
to survive in competitive market. A well designed supply chain will operate by quickly and
efficiently in terms of delivery of products to the end customer in a smooth flow without
many obstacles. Lean supply chain will yield lower inventory cost, lower size lot, higher
productivity and flexibility, and faster response time to the customers. The 99
Speedmart's business concept is by achieving optimum economies of scale through bulk
purchases of goods. There are area where 99 Speedmart used lean supply chain approach
to overcome some of its problems which are the warehouse and transportation. For
warehouse, the company always concentrates on reduction of unnecessary inventory. A
lean supply chain will help to have minimal inventories and minimal amount of
warehousing space required to store those inventories. Meanwhile for transportation, the
99 Speedmart often look to their transportation procedures to understand where they really
can be reorganize so by lean supply chain it helps to reduce the cost of moving inventory.
By reducing unnecessary inventory, a company can minimize warehousing space and will
reduce the overall costs. The 99 Speedmart used direct distribution channel strategy in their
business. A direct channel of distribution is the best strategy for 99 Speedmart where
products is deliver faster to consumer without any help of intermediaries. By selling direct
to consumers, 99 Speedmart able to reduce the cost of having additional layer between
consumers and them. When cutting down on such layer, the 99 Speedmart able to offer
better price to consumers. Therefore, their focus is to achieve efficiency and reduce costs.