7-11 Japan Supply Chain Case Study

 

as DSD that is through information knowledge expertise with their business functions todeliver frequent product services of varied items and the engagement assurance given to thecustomers.The advantage of successful and improved implementation of chain Seven-Eleven effectivelytripled the buying power and also accessed new products.. The distribution systems of Seven-Eleven were re-engineered and the Combined Distribution Centers (CDC) have beenintroduced by the company to better manage the flow of products into the stores. With theimplementation of CDC and DSD (Door Store Delivery) centers allow smoothing of distribution operation to the stores and the provision of better quality and better informationof supply and deliveries is available and the control of the supply chain is achieved. Theimplementation of technology POS (Point of Sales) helps to move ahead and give addational boost to the profit of seven-eleven.

BACKGROUND:

Seven-Eleven Japan Company was founded in the year 1973 and had its first store inTokyo, and by the year 2004, Ito-Yokado group owned the company and thus, managedsuccessful supermarkets in Japan and that, Seven-Eleven had realized unique growth in the

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7-Eleven Japan Supply Chain Case

953 WordsNov 26th, 20134 Pages

1) A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?

In order to be response, a store has to make a selection between holding large inventory or frequent orders & frequent delivery routes.
With holding large inventory, risks would be: risk of unsold products; inventory costs (in terms of money) and holding costs (in terms of area).
With frequent orders and frequent deliveries, risks would be high transportation costs, low efficiency, and risk of opportunity cost by not being able to deliver on time and meet high demand.
2) Seven-Eleven’s…show more content…

Population density is 10 times higher in Japan (~900 per sq. mile) than it is in America. This means, people will have to travel much more distance to pick up their parcel. In this case, they would prefer directly to home delivery.
So, 7Dream.com concept for United States wouldn’t be as successful as in Japan.
6) Seven-Eleven is attempting to duplicate the supply chain structure that has succeeded in Japan in the
United States with the introduction of CDCs (combined distribution center). What are the pros and cons of this approach? Keep in mind that stores are also replenished by wholesalers and DSD (direct store delivery) by manufacturers.

Assuming that the stores will not be populated as dense as in Japan because of the area and population density, such system would still let 7-Eleven Japan reach high efficiency using integrated information and match supply and demand, but it won’t be as efficient as it would be in Japan.
For cons, confusion as a result of 3 way information exchange, managing the delivery from 3 different suppliers, time spent on placing the orders and received goods are extra hassle for the store managers.
7)

The United States has food service distributors that also replenish convenience stores. What are the pros and cons to having a distributor replenish convenience stores versus a company like Seven-Eleven managing its own distribution

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