Académique Documents
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Success Story
Group 1
Akhil S.
Mohit M.
Pooja K.
Shweta V.
Agenda
History
Convenience Store chain
Responsiveness
Risks
Rapid Replenishment
Micro-Match Supply and Demand
Risks
Seven-Eleven Capabilities
Seven-Eleven Policies
7dream Concept
Seven Eleven CDCs
Outsourcing Replenishment Pros and cons
7-Eleven
Mission
Our Mission is to be Your Convenient Neighborhood Store.
Vision
Our Vision Is to Be the Best Retailer of Convenience.
Servant Leadership Culture
With "breakthrough thinking" that is not constrained by the past,
Seven- Eleven will continue to always tackle new challenges and
create a convenience store business that responds to expectations
from customers and franchisees. Message from Chairman
History
Founded by Mr. Masatoshi Ito after the second World war
1st Seven Eleven
convenience store
opened in Tokyo
1960
1972
Approached Southland
Corporation
1974
Southland corporation
entered bankruptcy
protection
1979-84
1990
1991
Stores Growth
Source : http://www.sej.co.jp
Convenience Store
Chain
-Proximity
Risk: Not all demands can be fulfilled, Demands
change over time.
Responsiveness and
Risk
Customer Shopping trends
Risk: Customer is unpredictable
Efficient distribution systems linked to the entire
supply chain network
Risk: Breakdown can result in disruption
in
services
Quick replenishment
Risk: Cost of transportation are very high
Rapid
Replenishment
Micro Match Demand and Supply
Location, season, time of day
Open new stores in target areas
Consolidate warehousing and transportation
functions
All stores connected electronically to head office,
DCs and suppliers.
Risks
Risk of dealing with inconsistent customer demand
resulting in over or under stocking inventory
If information systems fail, they will result in mismatch
of stocks and demand
Seasonal demands can be highly unpredictable
Many clusters of stores results in high transportation
and inventory holding costs
Capability Development
Facility Location
Capability Development
Inventory Management
& Information
Infrastructure
Aim
To better match supply with demand
Effectively track sales of items
Increase number of original items
Action
Total Information System
Benefits
Detailed analysis on store, district
and company-wide basis to improve
ordering process
Reduced Inventory at distribution
centers
Reduced wastage of shelf space
Effectively test new products
Stock fresh products based on JIT
demand
Capability Development
Transportation
Aim
Achieve short replenishment
cycles
Increase sales of original
items
Action
Combined Delivery System
(CDS)
Off-peak hour delivery
Benefits
Flexibility in delivery
schedules could be achieved
Reduced
transportation/delivery costs
Reduced delivery time
Benefits of CDCs
Reduced delivery time
Review 7dream
7Dream is an e-commerce company of 7-11
7dream US or Japan
Store density is higher than that in US.
Japan
Seven-Eleven is attempting to
duplicate the supply chain
structure that has succeeded in
Japan in the United States with
the introduction of CDCs. What
are the pros and cons of this
approach? Keep in mind that
stores are also replenished by
wholesalers and DSD by
manufacturers.
Outsourcing Replenishment
An overall loss of control
An increased number of deliveries to each
store
Difficulty of integrating information flows
across disparate systems.