7-Eleven Japan Co.: a Convenience Store Essay

2108 Words Jan 22nd, 2013 9 Pages
Case: 7-Eleven Japan Co.

Table of Contents

Question 1: 3 Question 2: 3 Question 3: 4 Question 4: 4 Question 5: 4 Question 6: 4 Question 7: 6

Question 1:
A 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?

A convenience store can be more responsive by doing exactly what Seven-Eleven Japan is doing; many locations, rapid replenishment, appropriate technology deployment, and an equally responsive supplier (vertical integration for many of their SKUs). The risks associated with this system are the costs coupled with
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Among the clusters there’s a distribution center which is surrounded by 7-Eleven stores. Approximately, there are 50-60 stores in each cluster.

Question 4:
7-Eleven does not allow direct store delivery in Japan but has all products flow through its distribution center. What benefit does 7-Eleven derive from this policy? When is direct store delivery more appropriate?

7-Eleven has the policy of delivering its products to the retail stores via the distribution centers. Through these distribution centers, the replenishment cycles are reduced and a proper sales record can be maintained and monitored. Through the Point of Sale registers, signals can be transmitted to both the distribution centre and the supplier hence orders can be organized accordingly. Also, orders are sent directly to the distribution centre so that they can be allotted to the appropriate vehicle. A combined delivery system is used by 7- Eleven, in which four groups of temperature-controlled trucks are used to send fresh products. The trucks are sent several times a day during peak hours in order to avoid delays.

Also, confidence is maintained between the supply chain partners and an additional person is not needed while the load is being received and checked. The process reduces delivery time. However this system might require a number of daily deliveries, but the number of trucks needed is much

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