Reengineering of large discount store: advanced shipping notice replenishment – specific purchase business model

As the price competition gets fiercer among the large discount stores recently, there have been many changes in the market, such as the market expansions through M&A and super supermarket (SSM) business models. A new business model for the large discount stores and its efficient operation is urgently needed. Recently, advanced shipping notice (ASN) service has been applied to ordering system in some large discount stores in Korea. ASN is a supply service system in which the products are supplied not by the package of items but by the item itself. But many suppliers are not adopting the service strategically. This paper suggests a direction for the ASN service – ASN replenishment (ASNR) method, and a new business model – ASN replenishment specific purchase (ASNR-SP) model, and the reengineering of supply processes in the large discount stores will be proposed along with it.