Seven Eleven Japan Case Study Supply Chain Management


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.


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


SUPPLY CHAIN MANAGEMENT CASE STUDY: SEVEN-ELEVEN IN JAPAN. In May 1974, the first Seven-Eleven convenient store was open in Tokyo. It was two years after a successful clothing storeowner named Ito-Yokado first approached the Southland Corporation about the possibility of opening Seven-Eleven convenient store in Japan, 1972. In 1973, after declining Ito’s initial proposal, Southland Corporation signed an agreement with Ito-Yokado to open Seven-Eleven convenient store in Japan in exchange with 0.6 percent the total sales. Since the first opening of the convenient store, Seven-Eleven managed to capture the heart of the locals. By 1979, there were already 591 Seven-Eleven store in Japan and this rapid growth continued resulting 12,034 stores by 2007 with 2,574.3 billion yen annual sales. Qns 3. What has Seven-Eleven done in its choice of facility location, inventory management, transportation and information infrastructure to develop capabilities that support its supply chain strategy in Japan? Seven-Eleven Japan network expansion was based on market dominance strategy including in its supply chain decision-making. Facility location Seven-Eleven are based on area-dominance strategy in specific area (cluster based). About 50 to 60 stores in a small geographical area supported by a distribution center in which allow efficient distribution system. Not only that, it also help to improve brand awareness, increased system efficiency, enhanced efficiency of franchise support services, improved advertising effectiveness as well as prevent competitor entrance into the dominant areas. Inventory management Seven-Eleven’s inventory system is run on an information system that transmits directly to the supplier and distribution center; goods are produced using a pull system to replace what has been sold during that delivery period. Majority of its new stores in area are supported by only one distribution center, and this distribution center keep no inventory. These strategies can lower the inventory handling cost, and to develop capabilities that support its supply chain strategy in Japan. All inventories, at all stores,

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