Seven Eleven

In: Business and Management

Submitted By kelle01
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CASE: SEVEN ELEVEN JAPAN

Executive Summary

I

Executive Summary The goal of this case is to analyze how a firm can be successful by structuring its supply chain to support its supply chain strategy. Once Seven-Eleven Japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support this choice. The case also brings up the question of whether the same approach can work in the United States, especially given the greater distances and lower store density.

Table of Contents

II

I Table of Contents

Executive Summary ................................................................................................................. I II List of Abbreviations......................................................................................................... III 1 Seven-Eleven Japan Co........................................................................................................ 1 1.1 History and Profile ........................................................................................................... 1 1.2 Framework of further discussions .................................................................................... 1 2 Discussion ............................................................................................................................ 1 2.1 Supply Chain Responsiveness .......................................................................................... 1 2.2 Micro-Match Supply and Demand ................................................................................... 2 2.3 Develop Capabilities Supporting The Supply Chain Strategy ......................................... 3 2.4 Direct Store Delivery........................................................................................................ 3 2.5…...

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...study of Seven-Eleven Japan Co. 1. Convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case? Ways of responsiveness of convenience store Risks supply chain Fast replenishment:  Cost of transport 1-3 times daily store delivery  Rely on the stability of Transport Local inventory:  Cost of inventory maintenance Sales of items stockpiled in local store  Cost of obsolete inventory Order taking*:  Cost of numerous orders processing Delivering merchandise according to customers’  Limited lead time orders On-site producing:  Cost of raw material inventory Producing merchandise with raw material on-site  Fluctuation of sales 2. 7-Eleven's supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice? Rapid replenishment and Micro-match supply & demand strategy highly rely on the efficient ordering system and the fast transport. As a result, the cost of ordering system and fast transport themselves can be a risk. Moreover, according to this case, 7-11 develops an anticipation system, in order to forecast the local sales. However, when customers’ needs fluctuate in short period and original anticipation loses effectiveness, it will face extra cost of transport. 3. What has 7-Eleven done......

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