7 11 Supply Chain Analysis

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SUPPLY CHAIN MANAGEMENT
7-11 JAPAN

History
7-Eleven is part of an international chain of convenience stores, operating under Seven-Eleven Japan Co. Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 46,000 outlets. Timeline

1973: York Seven Co., Ltd., established
1974: First store opened (Toyosu Store, Koto-ku and Tokyo)
1975: 24-hour operations (Toramaru Store, Koriyama, Fukushima Prefecture) begun 1976: Total number of stores reached 100. Integration of suppliers and joint delivery started. 1978: Corporate name changed to Seven-Eleven Japan Co., Ltd 1980: Total number of stores reaches 1000

1982: POS and EOB ordering systems introduced.
1985: Introduction of interactive registers capable of transmitting information to and from the headquarters and stores. 1997: Introduction of fifth generation Total Information System 2000: Establishment of e-commerce Company, 7dream.com

2001: Establishment of IYBank Co., Ltd., through joint investment with Ito- Yokado Co., Ltd. Installation of IYBank ATMs in stores. 2004: Establishment of SEVEN-ELEVEN (BEIJING) CO., LTD as a joint venture.

Competitive strategy:
The strategy followed by 7-11 was to provide high-availability of a variety of reasonable quality products at reasonable prices.

Strategy of 7-Eleven Japan
Market Dominance was the main objective of 7-11. This was done by having a Cluster of stores (50-60) in small geographical area supported by a Distribution Centre (DC). This resulted in efficiency in distribution and systems, enhanced brand awareness and increased entry barriers for new entrants. The demand for goods like food stuff is continuous but varies very quickly even within a day. In order to satisfy this fluctuating demand, the distribution system of 7-11 should be very responsive and was supported by the IT system .To improve...
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