Supply Chain Management
Case study: 7-eleven Japan Co.
Name: Chow Lai Ting
Student number: 113226
Seven-Eleven Japan was established in 1973 with its first store opened in Tokyo. It is considered an outstanding and well-known enterprise in Japan. The rapid growth of Seven-Eleven is also remarkable. In 1985 to 2007, its number of store had drastically increased from 2,299 to 12,034. The annual sales increased from 386 billion to 91.5 billion. Additionally, the company’s return on equity averaged around 14 percent between 2000 and 2004. Seven-eleven is not only the largest convenient store but also the largest retailer with its number of store and operation ...view middle of the document...
Also, it provides a high number of store which is increasing the efficiency to the customers. The customer find it easily to buy the stuff they want.
Inventory management: Seven-eleven uses scanner to read the code of the product. This method to record the product sale helps store manager to predict the sale of that product. Also, it stores a choice from a set of 5,000 stock keeping units. Each store carried on average about 3,000 SKUs depend the customer’s demand in that area. This leads to a higher responsiveness because the store can respond to the order quickly.
Transportation: Seven-eleven outsource its delivery to a transportation company which is Transfleet. It leads to a more flexible operation and lower transportation cost, as Seven-eleven doesn’t need to buy their own trucks for goods delivery. The outsourced transportation company provides professional crew and variety of trucks which benefit Seven-eleven and lead to a more accurate delivery. Also, the food items were classified in 4 broad categories according to its range of temperature storage. So they can occupy the same range of food to one truck in order to minimize the trucks used and design the most efficient route to deliver goods to a cluster of stores.
Information infrastructure: The information system that Seven-eleven adopted is the integrated services digital network (ISDN). It is installed in every stores and linked over 5,000 store to its headquarter, suppliers, and the distribution center. It also adopted to the POS system for cash registers and scanner terminal control equipment.
Q2. How would you characterize the competitive strategy of Seven-Eleven Japan? Do you agree that Seven-Eleven Japan has achieved vey good strategic fit between its competitive and supply chain strategies? Why?
The competitive strategy of Seven-eleven is to provide high-responsiveness and satisfy the wide range of customers’ demand. Also, it tries its every effort to make the best balance between efficiency and responsiveness. It has become a very successful convenient store in Japan as it offers a high customer service level.
The reason that make Seven-eleven fulfills its strategic fit is the well-organized supply chain management such as equally responsive suppliers, many shop locations, appropriate information systems deployment and rapid...