Seven Eleven Case Study

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The Seven-Eleven Japan Co. case discusses about the rise of Seven-Eleven in the Japanese retail store business. It analyzes the factors contributors to the phenomenal success of the company in the retail business with a supply chain perspective. The analysis focuses on the company’s supply chain strategy and performance drivers which leads to great balance between efficiency and responsiveness.

1) A convenience store chain can be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenient store supply chain can be responsive? What are some risks in each case?

Increasing Location
Build several stores within the same geographical area with minimum distance apart from one another to gain the accessibility by customers. Risk: Having too many stores close to one another can have cannibalizing effect on the stores.

Rapid Replenishment
Supply the stores with what customers need when they need it. It also enables the stores to have low levels of inventory. Risk: Having too frequent replenishment of products to different locations will increase the cost of transportation.

Increasing Inventory
Offer the customers with greater varieties and quantities of products at all the stores to suit their preferences. Risk: Having greater varieties of products will cause low level of error in forecasting demand and consequently increase wastage, if any; having high level of inventory will increase the holding cost and make the stores less efficient.

Extensive Use of Information System
Help the store managers to forecast the demand with greater accuracy to better satisfy the needs of customers. Risk: Having the entire supply chain heavily dependent on the information system will cause the operation going haywire in the case of network failure.

Increasing Capacity
Expand the space of the stores to better facilitate the store activities and...
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