7 Eleven Japan-G8

7/28/2019 7 Eleven Japan-G8

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CASE STUDY

7- ELEVEN JAPAN CO.

PRESENTED BY:

Richa GuptaSana Sayeed

Seema.P

Satish.P

Santosh.S

Ranjith


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INTRODUCTION

The goal of this case is to illustrate how a firm can be

successful by structuring its supply chain to support its

supply chain strategy. Once Seven-Eleven Japan decided

to provide responsiveness by rapid replenishment, itthen structured its facilities, inventory, information, and

distribution to support this choice. The case also brings

up the question of whether the same approach can

work in the United States.


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QUESTION.1

As responses - uncertainty

(Convenience Store)

Local Capacity

Local Inventory

Rapid Replenishment


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QUESTION 2

Risk associated with attempting to micro match

supply and demand are:

High cost of Transportation

High order cost

As they have reduced vehicles they dont have any

back up plan

IT Breakdown


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QUESTION 3


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FACILITIES

INVENTORY

Less in no.

Held no

inventory

Decreased

efficiency

DC

More in no.

Kept

inventory

on shelf

Located in

abundanceand

dominated

market

More

responsive

Stores

No inventory

Highlyefficient

Poor at

responsivene

ss

DC

Kept dailystock

Low

inventory

More

efficient

VeryResponsive

Stores


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CONTI..

TRANSPORTATION

At two levels:

-Vendors To DC and

-DC to Store

Mode:

Trucks

-High Frequency

-High Responsiveness.

INFORMATION

Graphic Order Terminal

Scanner Terminal

Store computer

POS Register


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QUESTION 4

BENEFITS OF DISTRIBUTION CENTRES:

Reduces complexity at store level

Organizes store demand at DC

Reduces complexity and cost for vendors to directly

delivery at the store

DSD MORE APPROPRIATE:

Variety of product is less

Order size is more

Delivery destinations are few.


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QUESTION 5

The 7dream concept allows e-commerce sites to

use Seven-Eleven stores as drop-off and collection

points for Japanese e-commerce customers. It hasbeen extremely successful; a recent survey

revealed that 92 percent of the customers of one

e-commerce company preferred to have their

items shipped this way.


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CONTI

This concept will be more successful in Japan as

compared to US because :

Store density is high in Japan

As store density is high, Seven-Eleven to offer alower cost alternative to having a package carrierdeliver the product at home

Suburban customers in the US would likely find itincredibly inconvenient and avoid it unless homedelivery was not possible .


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QUESTION 6

Pros

Ensures fresh supply of items

Operational efficiency

It will reduce vehicles for distribution


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CONT

Cons: The difficulty of duplicating the Japan supply

chain structure in the United States follows

primarily from the much lower density of U.S.Seven-Eleven stores.

Wholesalers may have issues because of the

distribution centers

Manufacturers may prefer DSD as they have morecontrol here


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QUESTION 7

Pros

Cost effective

CDC (Combined distribution centre) makes seven

eleven networking strong. Given the lower density of stores, a distributor is

able to aggregate deliveries across many

competing stores.


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CONT

Cons

Less control over replenishment cycles and

over quality of items

May not be responsive as having own

distribution system

DCs should maintain inventory


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CONCLUSION

Supply chain system adopted by 7-Eleven in

Japan is very effective. Here they managed

Efficiency & Responsiveness and by thisachieved strategic fit.

Thus we realize that by integrating the supply

chain certain constraints of business can be

minimized and customer service levels can

be improved through executing information

technology systems.


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Documents

7 Eleven Japan-G8