236378

230685
232703
236266
236321
236414
236473
240836

PUTERI NUR LIYANA BT MEGAT ZULKEFLI

CHEN MIN SHENG
DEWI SARTIKA BINTI JAMALUDIN
CHIN KIEW YEN
KAMELESHWERI
MUHD DANIAL BIN JAMALUDIN
NUR AFINA BINTI JAMIL
MUHAMAD FIRDAUS BIN MOHMMAD

GROUP
1

Seven Eleven Japan CO.

Founded by Masatoshi Ito

Established by Ito Yokado
1972 = approach Southland Corporation
1973 = Southland agreed a licensing agreement
1974 = First 7-11 Japan in Koto-ku, Tokyo
1990 = Southland enter into bankruptcy protection
1991 = IYG Holding acquire 70% of Southland common
stock worth $430 million
2005 = Seven & i Holding Co. Ltd established through
stock transfer combine 7-11 Japan, Ito Yokado &
Dennys Japan

Convenient store & Seven Eleven

in Japan
7-11 dominate 90% of Japan convenience stores
Sales per day = 647,000yen

D
E
R
A
P
M
O
C

Others 10% convenient stores

Sales per day = 484,000yen

Franchise System
Responsibilities:- Develop supply & merchandise
- Provide ordering service
- Pay for systems operations
Seven Eleven
- Supply accounting service
Headquarters
- Provide advertising
- Install and remodel facilities
- Pay 80% utility cost

Company-owned
Store

**Hire professional
manager in-order to
extend profits

45% Profits
55% profits

Third-party
owned franchise

Responsibility:-Operate & Manage Store

- Hire & Pay Staff
- Order Supplies
- Maintain store appearance
- Provide customer service

Store Information & content

Offer product according to local demand
Emphasize local preference
Food Item: i) Chilled-temperature items
ii) Warm-temperature items
iii) Frozen Items
iv) Room-temperature items
Other product : soft drinks, Nutrition drinks
Alcoholics Beverage
Music CD, Magazines
Game software
Private brand products

Store Service

1. Payment of Bills
2. Accept installments on behalf of credit companies
3. Payment for internet shopping
4. ATM at most stores
5. Meal delivery service for aging population of Japan
6. Ticket sales , Photocopying
7. Pick up location for parcel delivery
8. 7 dream e-commerce
9. Home meal delivery especially for women
10. Nanaco (electronic money)

Distribution System

Distribution system

Facility
2 levels;i) DCs
-) Less in number
-) Held no inventory
-) Served stores in its cluster
-) Increase efficiency as opposed to responsiveness
ii) Stores
-) More in number
-) Kept inventory on shelf
-) Located in abundance and dominated the market
-) Were more responsive than efficient

Inventory
i)
-)
-)
-)

DCs
no inventory
High efficient
Poor responsiveness

ii) Stores
-) Kept daily stocks
-) Low inventory
-) Efficient but not responsiveness

Transportation
i) Vendor to DC (Vendor delivery)
ii) DC to stores (7-11 delivery)
) Transportation Network design
-) Each truck would be stocked at DC
-) One truck would deliver supplies to more than one
stores
)
-)
)
)

Mode of Transportation
Road (van& truck were use)
High Frequency
Provide high responsiveness opposed to efficiency

Integrated Store Information System

i. Graphic Order Terminal
Ii. Scanner Terminal
Iii. Store computer
- linked to 7-11 network -GOT
-POS
- Tracked inventory levels,-ST
place order maintain store
equipment.
Iv. POS register
- data/details will be stored after customer purchase and then
transmit to HQ
Data relayed to Suppliers, DC and Headquarters
automatically.
Increase both efficiency & responsiveness.

Sourcing

Outsourced transportation
- Transfleet Ltd. Set up by Mitsui and Co.
To ensured rapid, reliable delivery.
DC merely transferred inventory carried from
supplier truck to Seven Eleven distribution truck.

Pricing

Offer reasonable priced product

Market dominance allowed ease of
access to customer
Above factors led to stable demand

US MARKET
Existing system
- Store replenishment through Direct Store Delivery
from Manufacturers
- Remaining products delivered by Wholesalers
Introducing Combined Distribution Centre concept
- 23 CDC across North America
- Supported 80% of store Network
Introducing Fresh Food like Japan