1. Describe the type of supply chain used by 7-Eleven. For example are they agile, adaptable, aligned?
7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and ...view middle of the document...
” Previously small suppliers that could not afford an integrated system were recording transactions through printed invoices. With the new system “small suppliers can log on to a secure website and use an ID and password to submit invoices and track their progress, said Morrow. Large suppliers can transition from EDI to webMethods' XML-based Integration Platform over a period of time so that all of their systems eventually will be able to communicate with 7-Eleven using XML for data transfer”. EDS will also enable and host Vcom, an ATM like device that allows customers to easily cash checks, purchase money orders and obtain other financial services.
The implementation of the new system was summed up perfectly by Chief information officer Sharon Stufflebeme. "This agreement aligns well with our business objective of flexibility and scalability and meets the need to adapt as we change and grow. These applications help provide the support we need to continue to deliver customers what they want, when and where they want it."
7-Eleven also implemented other key technologies and models, such as the SAP Retail Merchandising System and it’s centralized purchasing and distribution model which will be explained in further detail below. As a whole, Total Quality Management was introduced ensuring quality standards were met throughout all stages of production and supply. Through implementing various systems, 7-Eleven’s supply chain efficiency dramatically improved. Orders could now be electronically processed in under 7 minutes and delivery truck routes could be mapped and maintained. Thus, it is evident that implementing technological systems has a major affect on 7-Elevens supply chain.
2. Describe the product characteristics of 7-Eleven and how this impacts upon replenishment.
7-Eleven has always been a provider of small everyday needs such as snacks, confectionary, cigarettes and fast food. However with a constant changing environment and marketplace 7-Eleven has learned to adapt. Often customers will be looking for a ‘healthy alternative’, however due to work time constraints and product availability, they settle for the quick and easy fast food option. 7-Eleven has taken this on board and hence adapted their product range to cater for those looking for something healthier, while still owning the label ‘convenience’.
In targeting the healthier alternative, 7-Eleven has launched their very own ‘munch’ range of gourmet sandwiches, pastries and cakes; which is outperforming the market in terms of growth. Its new strategy aims to feature a new range of ‘food on the run’ products as well as a new store design to highlight the availability of food service.
Fresh Coffee To Go is another major area that 7-Eleven has implemented, offering quality coffee at extremely low prices. As a further marketing technique 7-Eleven have been involved in ‘Cup With A Cause” with the funds raised going directly to certain celebrities chosen charity....