7-Eleven Stocks Up on Tech Savvy

Group Members,

V.Pavan

B.Madhav

CH. Prasuna

R.R.R.Atri Kumar

G.V.V.S.Chandra Sekhar

Introduction• Overview

• About the Company• Total 48000 Outlets

• Why 7-Eleven?• Tanpin Kanri (Item-by-Item Management)• Retailers Initiative

• Inventory Management with Technology Up gradation

• Mobile Operations Terminal(MOT) • MC-300

• Sharing the data

• 7-Exchange Data System• Web Vendor Terminal

• Latest Technology Improvements • Radio Frequency Identification(RFID)

7 – ELEVEN STRATEGY

Strategy of 7 – Eleven – “Tanpin Kanri”.

It means item by item management rather than category by

category management.

This strategy boosted up sales in Japan and North America.

DIFFERENCES BEFORE AND AFTER TECHNOLOGY

SCENARIO BEFORE USING THE TECHNOLOGY

SCENARIO AFTER USING THE TECHNOLOGY

Suppliers used to decide the amount and type of product to be on the shelves

Customers are the one who are deciding the product to be on the shelves

Suppliers used to play the role of order makers

Suppliers now playing the role of order takers

No interaction with the customers High interaction with the customers

No awareness on customers buying pattern

High degree of awareness on customerbuying patterns

BENEFITS OF TECHNOLOGY

Reduction in inventory

Reduction in stock out situation

Store and warehouse labour reduction

Increase in speed and accuracy

7 – ELEVEN success

Success of 7 – Eleven lies in the Information use which is a result of

use of technology.

New to taste and new variety of food items are the key to success.

Prediction of sales with high degree of accuracy due to technology.

This helps in reducing the bull – whip effect.

TECHNOLOGY

• MOT

• MC3000 Colour Handheld Scanner

• RIS

WHAT CUSTOMERS WANT

• Customers will reward those stores who

know what they want

• Growing competition for convenience stores

• Collection of information on customer preferences

• Wireless tools used to slash time and labour to count inventory

• Software ordering system for fresh food

• Reduction is risk involved in introducing new products

SHARING DATA

•7-Eleven Company shares the data through Platform is called the 7 -Exchange.

•EDI

• 7- Eleven Company sharing the data

with Key Suppliers, Like; Anheuser-Busch, Kraft food and Pepsi Co

•7 –Eleven company Exchange the information with small suppliers through web vendor Terminal.

TRIAL & ERROR• Not all tech Initiatives are succeeded.

• Self-service Checkout

• Virtual Commerce

• RFID

Goals Achieved

• Collected data item by item, store by store, day by day, while others focused on Point of sale data.

• MOT-allows access to the item information & allows recording of inventory changes.

• RIS-Provides timely sales data which enables each store to tailor assortment to it’s customers.

• 7-Exchange-Collaboration with suppliers by sharing data analysis through this program.

Software's in Supply Chain Management

• WMS- Warehouse Management Systems• SCE-Supply Chain execution software• SCP-Supply Chain Planning software• TMS-Transportation Management System• MES-Manufacturing Execution System• EWM-Extended Warehouse Management• Some of ERP packages are –WebERP, Tryton,

OpenERP, ERP5, ERPNEXT• Slotting Software-map’s the warehouse and the

velocity of orders and order mixes to calculate the fastest moving items.