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  • Presentation-Case Study Seven Eleven

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    Mia Yusuf
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    The document discusses ways that convenience store supply chains can be responsive and the associated risks. It describes how Seven-Eleven Japan developed capabilities to support its supply chain strategy through facility location, inventory management, fast transportation, and information infrastructure. It argues that Seven-Eleven Japan's new 7dream concept, which allows customers to ship purchases to stores, is more likely to succeed in Japan than the US due to Japan having a higher store density, a culture more open to e-commerce and valuing privacy, and greater convenience.

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    The document discusses ways that convenience store supply chains can be responsive and the associated risks. It describes how Seven-Eleven Japan developed capabilities to support its supply chain strategy through facility location, inventory management, fast transportation, and information infrastructure. It argues that Seven-Eleven Japan's new 7dream concept, which allows customers to ship purchases to stores, is more likely to succeed in Japan than the US due to Japan having a higher store density, a culture more open to e-commerce and valuing privacy, and greater convenience.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    1K views19 pages

    Presentation-Case Study Seven Eleven

    Uploaded by

    Mia Yusuf
    The document discusses ways that convenience store supply chains can be responsive and the associated risks. It describes how Seven-Eleven Japan developed capabilities to support its supply chain strategy through facility location, inventory management, fast transportation, and information infrastructure. It argues that Seven-Eleven Japan's new 7dream concept, which allows customers to ship purchases to stores, is more likely to succeed in Japan than the US due to Japan having a higher store density, a culture more open to e-commerce and valuing privacy, and greater convenience.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 19

    Question 1

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

    Question 1
    Answer
    Six drivers of supply chain performance
    1. Facilities 2. Inventory 3. Transportation 4. Information 5. Sourcing 6. Pricing

    Question 1
    Answer 1. Facilities (the where of the supply chain)
    Locating large number facilities close to customer Decentralize Large amount of excess capacity (flexibility) Number of facilities Responsive Cost Efficiency

    RISK!

    Question 1
    Answer 2. Inventory -mismatch between supply and demand
    Locating large amounts of inventory close to customer High level of availability

    RISK!

    inventory Responsive Cost Efficiency

    Question 1
    Answer 3. Transportation (moves the product between
    stages in supply chain)
    Faster transportation Lowers the inventory cost
    Speed in transportation Responsive Cost Efficiency

    RISK!

    Question 1
    Answer 4. Information (connection between various stages)
    Get customer order faster Match demand better Responsive Cost Efficiency Complexity Value

    RISK!

    Question 1
    Answer 5. Sourcing (set of business processes required to
    purchase goods and service)
    Outsourcing if next-day delivery on its own is expensive In-house to maintain control, respond quickly to orders

    RISK!

    Responsive Cost Efficiency

    Question 1
    Answer 6. Pricing (how much to charge customers)
    Pricing varies with response time

    RISK!

    Price Responsive Cost Efficiency

    Question 3

    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?

    Question 3
    Answer
    Facility location
    Market-dominance strategy existing cluster of stores High-density market 50 to 60 stores supported by only one distribution center(DC) DC keep no inventory Ensure rapid, reliable delivery

    Question 3
    Answer
    7-11 Transportation

    Question 3
    Answer
    Transportation (cont)
    Combined delivery system System work on trust and did not require the delivery person Reduced the delivery time spent at each store Reduce the number of vehicles delivery service to each store Reduce delivery cost enable rapid delivery of variety of fresh foods

    Question 3
    Answer
    Information infrastructure
    Total information System installed in every outlet POS cash registers and terminal control Integrated services digital network (ISDN) high-speed, online communication Graphic order terminal, Scanner terminal, Store computer, POS Allowed Seven-Eleven stores to better match supply with demand

    Question 5

    5. What do you think about the 7dream concept for SevenEleven Japan? From a supply chain perspective, is it likely to be more successful in Japan or the United States? Why?

    Question 5
    Answer
    JAPAN is likely to be more successful!

    Question 5
    Answer
    Reasons :
    USA 6,262 stores

    Japan have more number of stores per area for drop-off customers goods

    Japan 12,071 stores

    Question 5
    Answer
    Reasons :
    Nature of Japanese people - Usually go to convenience store - High e-commerce Don't need to disclosure their address personal privacy More convenience

    Thank you
    Group #5 members Puangyoykeaw, Sarintorn (Tarn) Chimcherd, Vandee (Noi) Yusuf, Neri Meirianti (Mia) Alfred Tsilizani 2B1207 2B1204 2B1212 2B1210

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