The ability to respond quickly to the ever-changing marketplace is paramount to the success of most businesses. The convenience-store industry is a highly competitive one and 7-Eleven’s ability to become a leader market leader appears to be based on the company’s ability to quickly respond to the rapidly changing tastes and needs of the market.
7-Eleven has not always enjoyed success, especially in the 1980s when things got really bad for the company. Helped, however, arrived in the form of Ito-Yokado (the company’s Japanese Licensee). Ito-Yokado revamped the entire retailing approach of the company by introducing an innovative approach to retailing which, along with the aid of technologically advanced systems, significantly impacted 7-Eleven’s success. ANALYSIS
Ito-Yokado’s innovative approach to retailing is known as “tanpin kanri” or “item-by-item management”, a business approach that revolves around the following: 1.Carefully tracking and paying attention to the fine details of the buying preferences of customers 2.Allowing the customers tastes and shopping habits to dictate the products that are carried in 7-eleven stores. 7-Eleven has been able to simplify the process of tracking and paying very close attention to the shopping habits of their shoppers by using the information systems installed in all of their stores.
USING TECHNOLOGY TO IMPACT SUPPLY CHAIN VISIBILITY, VARIABILITY AND UNCERTAINTY Technology plays a vital role in 7-Eleven’s supply chain. The company’s state-of-the-art information systems appear to have reduced the company’s supply chain risks by increasing visibility, while reducing variability and uncertainty.
Supply Chain Visibility
Supply Chain visibility is the ability to access relevant supply chain information. Thanks to cutting-edge technology, like the Mobile Operations terminal or MOT, 7-Eleven knows the exact amount of individual items that are sold in each of its 5,800 North American stores on a daily...