?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

1. Facilities2. Inventory 3. Transportation 4. Information5. Sourcing6. Pricing

Six drivers of supply chain performance

Answer

1. Facilities (the “where” of the supply chain)

Locating large number facilities close to customer DecentralizeLarge 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

inventory Responsive Cost Efficiency

RISK!

Question 1 Answer

3. Transportation (moves the product between stages in supply chain)

Faster transportationLowers the inventory cost

Speed in transportation Responsive Cost Efficiency

RISK!

Question 1 Answer

4. Information (connection between various stages)

Get customer order fasterMatch 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

Responsive Cost Efficiency

RISK!

Question 1 Answer

6. Pricing (how much to charge customers)

Pricing varies with response time

Price Responsive Cost Efficiency

RISK!

Question 1 Answer

?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?

Facility location

Market-dominance strategy existing cluster of stores

High-density market50 to 60 stores supported by

only one distribution center(DC)

DC keep no inventory Ensure rapid, reliable

delivery

Question 3 Answer

Question 3 Answer

7-11 Transportation

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 infrastructureTotal information System installed

in every outletPOS 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 3 Answer

?Question 5

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

JAPAN is likely to be more successful!

Question 5 Answer

Question 5 Answer

Japan have more number of stores per areafor drop-off customer’s goods

USA – 6,262 stores

Japan – 12,071 stores

Reasons :

Nature of Japanese people- Usually go to convenience

store- High e-commerce

Don't need to disclosure their address personal privacy

More convenience

Question 5 Answer

Reasons :

Thank you Group #5 members

Puangyoykeaw, Sarintorn (Tarn) 2B1207Chimcherd, Vandee (Noi) 2B1204Yusuf, Neri Meirianti (Mia) 2B1212 Alfred Tsilizani 2B1210