1) SEJ is the leading convenience store chain in Japan, operating over 12,000 stores with annual profits of $30 billion. 2) SEJ has pioneered highly efficient logistics and supply chain management systems using data collected from every transaction to continuously replenish products and understand customer demand. 3) By analyzing detailed sales data collected through its integrated IT systems, SEJ is able to precisely replenish inventory, develop new products, and achieve strong financial performance despite economic challenges through its customer-focused operations.

1. Prepared by: BySusheel

2. INTRODUCTION
Leading Convenience Store in Japan.
No of Stores - 12000
Annual Profit - $30 Billion
Chairman & CEO - Toshifumi Suzuki
Positioning : “That Responds to Change”

3. US & Japanese Convenience Stores
Cultural Views
Japan Stores – Konbini
Integral part of their daily life
US – Simple Mini Marts
Late Night Visits & Saves time while filling gas.

4. SEJ Success Mantra
• Integration among Partners
• Share Information through highly evolved Data rich
SCM
Important Aspect of Japanese Business Model is ability to gather
data about their Consumers & transform it into Information.

5. Data Rich SCM
Solid Information System (Trends in Market Demands)
Helps in Product Replenishment & Creation
Pioneered a highly Efficient Logistics systems
Replenished Products to the very small shelf
space (Japan)

6. Major Innovator in convenience store Operations.
Implemented TQM – (Kaizen-Japan)
Achieved Success in Suffering Economy
( Due to Consumer focused orientation based upon Analysis of
Information Technology)
In 1991 SEJ Invested $200 Million 4th Gen IT
System.

7. 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”)
Started using ISDN (Integrated Service Digital Network)

8. Daily and weekly cycles
Macro & micro decision making which leads to reduce
risk(SCM)
Adopted 5th generation IT system in 1998
SEJ introduced new system to combine store level
product tracking by using satellite and internet
communication
Adopted JIT approach to reduce cost of keeping
inventory and spoilage

9. Introduced Joint Delivery program.(Reduced Delivery
Time)
Information System provides Sales Trend ,purchase
patterns , Customer Profile and Store characteristics
Distribution according to Geographical Region.
Constant Communication between store and HQ

12. Approach Strategy
Cluster of 50-60 stores in a geographical
area supported by DC
Market Dominance

13. Approach Tactics
Combination of own and franchisee stores
Store size: 150 sqm.
Average inventory: 3000 SKU and 5000 SKU(max)
Emphasis on regional merchandise

14. Supplier
(Frozen)
Supplier
(Warm)
Supplier
(Room
Temp)
Supplier
(Cold)
Stores Stores Stores Stores
Stores Stores Stores Stores

15. Competitive
Strategy
Supply Chain
Strategy
Facilities Inventory Transportation
Information Sourcing Pricing
Efficiency Responsiveness
Logistical Drivers

17. Financials

25. 36.5
20.3
17.1
10.9
4
11.1
7 Eleven Japan
Lawson
Family Mart
Sunkus
Ministock
Others

26. Conclusion
Average Inventory Turnover Time Reduced 25.5 to 8.4 days.
1977-2000 Sales improved $3660 to $6810.
Effective Supply Chain management and inventory
management.
Data Rich SCM is the most suitable approach for efficiency
and customer Value.
Gross Margin increased from 24% to 30%.