Seven Eleven Japan Case Study

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Established in 1973, Seven-Eleven Japan open its first store in Koto-ku, Tokyo, in May 1974. In 2004 it was owned by the Ito-yokado group, which also managed a chain of super markets in japan and owned a majority share in southland, the company managing seven-eleven in the United States. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 to 2003. The Competitive strategy of Seven Eleven Japan is to provide High-availability of a variety of reasonable products at reasonable prices. The total of the visits number per year for all the Japanese people is almost 35 times, that means each Japanese go on average 3 times a month to a Seven Eleven Outlet. When it started in Japan the new concept of this store was incredibly famous, …show more content…
7-eleven knows who is buying which product and at what time, it knows it because the system is really efficient. For each customer the cashier pushes a button with the approximate age, and the cash register the time and the kind of product that the client just bought. Now the system knows who, where and what is sold at any time of the day, the supply chain can be really responsive and offer the good where it is needed. The first online network was established in 1979, so it proves 7-eleven Japan was in front of all others about technologies and supply chain management. Of course they take some risks doing this, because the population can be bored or move. 7-eleven has to be careful about the needs every day, and has to react really quickly to all kind of problems they have to face up. In japan, 7 eleven adopts a strategic fit with the customers; they attempt to know what they need, where they need it and when they need it. Every single person is important in statistics for them; they really care on the demand. The main risk for them is the potentially high cost concerning the transportation. I think when you are a huge industry like 7-eleven in Japan, more than 12 000 retailers; you can't focus on …show more content…
7-eleven must be able to manage with uncertainty. In order to support its supply chain seven-eleven started to remodel the transportation in their supply chain. The number of trucks was really high, and they could use fewer trucks to do all the transportation work. They have different kind of trucks for different kind of goods (frozen food, warm food …). The supply chain worked hard every day to find a way to optimize the facilities, and it worked. Now the store order in the morning and receive in the afternoon, everything is really flexible. The location of the store is based on where the demand is, so they are not looking to open an outlet everywhere, but where people need it and where they will sell more products. They want to optimize the space where they are located. In less than 10 years they did a lot of progress in technologies, and more in inventory management. Now everything can be controlled on computers, and they know what they need. They work with some companies in order to have the best infrastructure. All the stocks depend on local customer demand, each stores have a different stock. Seven-eleven does not allow direct store delivery in Japan but has all products flow through its distribution center. One distribution

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