7 elements

1. SEVEN-ELEVEN JAPAN CO.
By
B. Sudir Kumar Reddy (1226112112)
B. Ravi Theja Raju (1226112111)
B. Shashank (1226112248)
V. Naresh (1226112258)

2. TIME LINE

3. SEVEN ELEVEN
UNIQUE SELLING PROPOSITION
• The Store Size was 150 sq.mt.
• Average Inventory capacity of about 3000 SKU /
store with max. capacity of 5000 SKU
• Provides customers’ high accessibility while
retaining the product quality
• Cluster of stores (50 to 60) in small Geographical
area support by a Distribution centre.

4. FRANCHISE SYSTEM
• The Seven-Eleven network consists of both company
owned stores and third party owned franchises.
• Less than 1 out of 100 applicants is awarded a franchise
• The franchise owner is required to put 3 million Yen up
front.
• Half of this amount is used for preparation of the store and
training of the owner. The rest is used for purchasing the
initial stock for the store.
• Forty five percent of total gross profits at a store go to
Seven-Eleven with the rest going to the store owner.

5. RESPONSIBILITIES
7-11 Japan responsibilities:
Franchise owner responsibilities:
1. Development of supply
and merchandise.
2. Providing the ordering
system.
3. Cost of system operation.
4. Accounting.
5. Advertising.
6. Installation and
remodelling of facilities.
1. Operation and management of
store.
2. Hiring and paying staff.
3. Ordering.
4. Maintaining store appearance.
5. Customer service.

7. INFORMATION SYSTEM
• Graphical order terminal—manager Info. &
order.
• Scanner terminal- Receiving & Inventory.
7

8. • POS register : real-time data on sales customer, data
analyzed overnight for company, district, and store.
• Store computer : it was linked with GOT,POS,
Scanner terminal through ISDN with DC’s &
Headquarter. which helped in deducing trend of
sales and Customers.
• Data was relayed to Suppliers, Distribution Centers
and the Headquarters automatically.
• Increased both efficiency and responsiveness.
8

9. SOURCING
• Outsourced transportation.
• From DC to Stores to Transfleet Ltd.
• Risk of Fuel Price Fluctuation, Fleet
Maintenance and Cost of Fleet staff was
transferred.
• The company increased profits and reduced
risk.
9

10. Started using ISDN (Integrated Service Digital Network)
ISDN Links their Retail Store with their Headquarters.
Data is gathered during every single transaction.
Store Manager & HQ Manager Analyze the Data.
HQ Manager Aggregates the Data & send it to the Store Manager &
Suppliers.
Store managers Review Information Hourly.
Weekly Cycle Information Gathering
Quality control data is analyzed by computerized decision support(“what
if” & “goal seeking”)

12. SUPPLY CHAIN

14. DISTRIBUTION SYSTEM

15. TRANSPORTATION

17. CONCLUSION
• Seven-Eleven was able to modernize the
convenience store by using a tailor made
information system, continuous innovations and
always placing high priority on the community and
its culture.
• Seven-eleven continues moving forward in its role
as a distribution group that can respond to
customer expectation through continuous
innovation and group synergy.

18. THANK YOU