Shaitan eleven By KK

8/7/2019 Shaitan eleven By KK

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EXECUTIVE SUMMARY

Seven-Eleven had realized unique growth in the business sector as there was utilization of supply chain

strategy of Seven-Eleven and certain performance drivers upon the balance nature business

responsiveness and the awareness of certain risks involved. For Seven-Eleven to be successful, ECR

approach will be realized that are effective for store assortments; chain replenishments and efficient

promotion as well as product introduction. Seven-Eleven have found better ways of developing their CDC

as well as DSD that is through information knowledge expertise and the augmentation of their business

functions to deliver frequent product services of varied items and the engagement assurance given to the

customers. The advantage of successful chain is within the improved economies of scale as Seven-

Eleven effectively tripling buying power and gaining access to new products as the US and Japanese

stores teamed to lower costs on certain premium wines for instance. The DSD can be appropriate when

there is ample and fair amount of logistics determining the ideal physical distribution of goods at Seven-

Eleven as there can be affected by the store¶s distribution center as well as facility location decisions. The

distribution systems of Seven-Eleven were re-engineered and the Combined Distribution Centers have

been introduced by the company to better manage the flow of products into the stores. There has been

useful advantage of Seven-Eleven upon CDC and DSD as the centers allow smoothing of distribution

operation to the stores and the provision of better quality and better information on supply and deliveries

is available and there was control of the supply chain as achieved. The presence of technology like the

adaptation of the POS system can possibly move ahead and do aid the store employment and

management situation by freeing up staff time.



BACKGROUND

Seven-Eleven Japan Company was founded in the year 1973 and had its first store in Tokyo, and by the

year 2004, Ito-Yokado group owned the company and thus, managed successful supermarkets in Japan

and that, Seven-Eleven had realized unique growth in the business sector. This report will be focusing

and deal with several discussion and case analysis of Seven-Eleven Japan Company within the rising

truth of Seven-Eleven as a leading convenience store chain as it can be within Japanese retail business

functions. The critical analysis will incur as to how the company does its business operation reflecting

their supply chain management as well as upon valuing their logistics into a more effective and reliable

perspective. The understanding and execution of supply chain process and outcomes have to be present

and supply chain analysis of Seven-Eleven is given more weight and value. The utilization of supply chain

strategy of Seven-Eleven and such performance drivers upon the balance nature business

responsiveness and the awareness of certain risks involved.



CONTENT

Seven-Eleven as one of the convenience store can be responsive in a lot of ways such as the execution

of efficient consumer response but it can be one catalyst for supply chain reform (cited in,

Szymankiewicz, 1997). The ECR promotes efficiency initiatives that assume Seven-Eleven product

replenishment as well as possible store assortment. Then, players of Seven-Eleven supply chain need to

work hand in hand in order to maximize the efficiency of the chain upon the delivering better value to their

loyal customers and that to be responsive driven, ample integration among players of Seven-Eleven

chain should be materialized such as by using information technologies to be at the forefront of the store

business (cited in, Doyle and Broadbridge, 1999). ECR attempts to increase the velocity of inventory in

the packaged goods industry throughout supply chain for Seven-Eleven to be successful, ECR approach

will need to eliminate most of buying practices of certain wholesalers and retailers and led inventory

accumulations into the store and its business nature and ideal responsiveness is within application of

ECR that have such principal strategies (cited in, Kurt Salmon Associates, 1993 page 4), where

executives were recommended to put their emphases:

*Store assortments the increased productivity of inventories and store space within consumer interface

* Replenishment upon optimizing time and cost in Seven-Eleven replenishment system

* Efficient promotion in maximizing total system efficiency of trade and consumer promotion

* Product introduction reflect effectiveness of new product development and introduction activities



The analysis can be that such presence of ECR cannot be reached through individual self-interested

within plausible assumptions that Seven-Eleven can be unwilling to adopt reforms without ideal benefits

to reduce certain risks involved, Seven-Eleven to be responsive is to develop good chain sources and

delivery ways thus, to improve availability and reduce constraints. Then, have an effective store image

that reflects store design (cited in, Doyle and Broadbridge, 1999) as it does also reflects Seven-Eleven¶s

management in terms of understanding attitudes towards customers and ensuring that store image

strikes ideal chord with customers have to be essential at Seven-Eleven (cited in, Newman and Atkinson,

2000).

It can be that, from chain distributor down to the consumer regardless of supply chain process, Seven-

Eleven products or services must be available at the right place and time. The risks associated for

replenishment of the Seven-Eleven chain can have possible miss outs on certain replenishment signals

geared towards product inventories that have to be always within the correct place and level that may

lead to shortage of stocks. There should have significant difference and advantage of replenishment

solution at Seven-Eleven thus, avoiding too much lean solutions in allowing Seven-Eleven to have

enough time to make decisions and take action of their supply chain management. Aside, there can be

risks of failure to identify supply constraints and a failed elevation of certain production and distribution

constraints as well as the lack of recognition to certain ideal replenishment buffers upon increasing of

supply frequency that will align the chain process with better business goal for Seven-Eleven to

undertake. Furthermore, such unavoidable outcomes must be put into consideration such as Seven-

Eleven¶s decreased pattern for their overall inventory incorporating lesser orders by batches or bulk (cited

in, Newman and Atkinson, 2000). The inevitable consequence is that sometimes Seven-Eleven don¶t

make effective right logs and sometimes have too many wrong logs and that by increasing order and

supply frequency Seven-Eleven can improve on current store delivery upon decreasing certain product

log inventories.

Ideally, several Japanese consumers¶ passion for innovative products means that Seven-Eleven may

stock proliferation of lines with little back-up inventory in store. The concept then places considerable

strain on the logistical network as marketing channels can be highly fragmented within multi-layered



system that includes manufacturers, wholesalers and retailers (cited in, Ferine, 1994). However, through

successful logistical innovation in convenience stores sector as led by internationally acclaimed store,

Seven-Eleven Japan determining that supply chain structure within the store has been streamlined in a

unique way that suits the particular market environment in Japan (cited in, Yahagi, 1994; Yahagi et al .,

1997). Thus, such role of wholesalers in Seven-Eleven¶s distribution system would initially minimize such

incremental trading power parallel to better quipped stores with successful supply chain domains. In

reality, Seven-Eleven have found better ways of developing their CDC as well as DSD that is through

information knowledge expertise and the augmentation of their business functions to deliver frequent

product services of varied items and the engagement assurance given to the customers.

Aside, there has been consideration of advertising strategy and strong emphasis on development of

concepts, brand names and strong protection of the matter. Within consistent store offer developed,

Seven-Eleven now stands for various things, rather than being just a location of last resort shopping. The

advantage of successful chain is within the improved economies of scale as Seven-Eleven effectively

tripling buying power and gaining access to new products as the US and Japanese stores teamed to

lower costs on certain premium wines for instance. The DSD can be appropriate when there is ample and

fair amount of logistics determining the ideal physical distribution of goods at Seven-Eleven as there can

be affected by the store¶s distribution center as well as facility location decisions like, Arntzen et al. (cited

in, 1995) indicated that decision criteria for logical design of global outgoing logistics network are: number

of distribution centers; where they need to be located; methods of distribution and capacity each should

have within customers that each centre will service by product and order type (cited in, pp. 71-2).

Seven-Eleven demonstrated store chain interaction and store chain integration and that the company

takes concept of Seven-Eleven stores in convenience and restructured business cycles which provided

remarkable success into the Japanese retailing (cited in, Kunitomo, 1997, Sakata, 1996). Seven-Eleven

Japan remain as the profitable retailer and has market capitalization that ranks it in the top three retailers

in the world. The success story simply keeps on continuing to deliver and whether the share price is

aware of potential problems ahead. The disadvantage can be the lack of customer driven channel as well

as approach such as geared towards better product selection being recognized within the Seven-Eleven



chain stores and the possible issues into the retail business that can be deemed for such variations

reflecting customer demand cycles upon understanding of customer needs and the awareness placed

into the value of supply chain domains for the store in strategic action stance and the development of

products and its product mix from within. Furthermore, product deletion of slow moving items is

encouraged to space for items to refresh the store. The distribution systems of Seven-Eleven were re-

engineered and the Combined Distribution Centers have been introduced by the company to better

manage the flow of products into the stores. There has been useful advantage of Seven-Eleven upon

CDC and DSD as the centers allow smoothing of distribution operation to the stores and the provision of

better quality and better information on supply and deliveries is available and there was control of the

supply chain as achieved. Then, another advantage can be imposed through high quality and advanced

retail information system is being introduced and mirrors better chain position within such CDC as well as

DSD ways upon driving better chain of store business. Indeed, because of the policy in support, Seven-

Eleven was keen to enhance its knowledge of the consumer and of the control of the business that

reflects the type of supply chain the store has. The presence of technology like the adaptation of the POS

system can possibly move ahead and do aid the store employment and management situation by freeing

up staff time.



CONCLUSION

In conclusion, realizing integration of Seven-Eleven supply chain can provide effective means by which

certain constraints of business can be minimized and customer service levels be improved through

executing information technology systems that are helpful to the company as a whole. Thus, being more

on the side of research and development have to be present as CDC and DSD may incorporate better,

more valuable supply chain network expecting solid store chain ground. Moreover, adaptation of ECR

incurs a substantial use for Seven-Eleven and that, the company in its business services can require

precise infrastructure within their distribution centers enabling effective information flows and streamline

supply logistics as one effective store chain business will be those having a mix of reliable information

requirements, right logistics and collaboration upon providing imperative business operation benefits

considering the majority of customers worldwide.



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Shaitan eleven By KK