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Seven-Eleven Japan Co.
A Supply Chain Case Study
History and Profile
 Founded by :- Mashatoshi Ito
 First Establishment :- Franchise of Seven-Eleven convenience stores under
Southland Corporation
 Year :- 1974
 Place :- Tokyo
Growth in No. of Convenience Stores
 About 13000 in
2010
 Average 35
visits per
customer
annually
Total Store Sales - >2700 billion ¥ [2009]
Market Share [Year 2008]
36.5
20.3
17.1
10.9 4
11.1
7 Eleven Japan
Lawson
Family Mart
Sunkus
Ministock
Others
Why so successful?
 Reach
 Store Strategies
 Integrated Information System
 Distribution System
REACH
Market dominance by high
density of stores
In 2009 – Omnipresence in 80
percent of prefectures within
Japan
Store Strategies
 Effective Franchise System
 Significant Initial up front
 45-55 Agreement
 7-11 Japan Responsibilities – Wholesome
 Franchise owner Responsibilities – Local including Customer Care.
 Store Services
 In-store Tokyo Electric Power Bills
 Gas bills, insurance premiums and Telephone
 High no. of ATMs near Stores [averaged 114 transactions per day in 2009].
 Photocopying, ticket sales (games, concerts, buses)
 Govt. services- providing certificates of residence
Integrated Information System
 Simplification of operations
 Advanced Information Technology
 Huge Investment for IT
 1991 – Integrated Services Digital Network (ISDN) connected 5000 stores.
 1997 – Fifth generation – Total Information System.
 IT Hardware
 Graphic Order Terminal
 Barcode Scanner Terminal
 Store Computer
 POS Register
Distribution System
 Objectives
 Track sales
 Short replenishment cycle times
 Cutoff times for breakfast, lunch and dinner ordering for stores
 Order reached supplier and Distribution Center simultaneously (thanks to IT)
 Combined/Categorized delivery system
 Off – peak hours delivery
 Zero Inventory at DCs.
 Dedicated 3rd party transportation [Mitsui and Co.]
Schematic of Supply Chain of 7-11 Japan
Supplier
(Frozen)
Supplier
(Warm)
Supplier
(Room
Temp)
Supplier
(Cold)
Stores Stores Stores Stores
Stores Stores Stores Stores
Thank you!!

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Seven-Eleven Japan Co

  • 1. Seven-Eleven Japan Co. A Supply Chain Case Study
  • 2. History and Profile  Founded by :- Mashatoshi Ito  First Establishment :- Franchise of Seven-Eleven convenience stores under Southland Corporation  Year :- 1974  Place :- Tokyo
  • 3. Growth in No. of Convenience Stores  About 13000 in 2010  Average 35 visits per customer annually
  • 4. Total Store Sales - >2700 billion ¥ [2009]
  • 5. Market Share [Year 2008] 36.5 20.3 17.1 10.9 4 11.1 7 Eleven Japan Lawson Family Mart Sunkus Ministock Others
  • 6. Why so successful?  Reach  Store Strategies  Integrated Information System  Distribution System
  • 7. REACH Market dominance by high density of stores In 2009 – Omnipresence in 80 percent of prefectures within Japan
  • 8. Store Strategies  Effective Franchise System  Significant Initial up front  45-55 Agreement  7-11 Japan Responsibilities – Wholesome  Franchise owner Responsibilities – Local including Customer Care.  Store Services  In-store Tokyo Electric Power Bills  Gas bills, insurance premiums and Telephone  High no. of ATMs near Stores [averaged 114 transactions per day in 2009].  Photocopying, ticket sales (games, concerts, buses)  Govt. services- providing certificates of residence
  • 9. Integrated Information System  Simplification of operations  Advanced Information Technology  Huge Investment for IT  1991 – Integrated Services Digital Network (ISDN) connected 5000 stores.  1997 – Fifth generation – Total Information System.  IT Hardware  Graphic Order Terminal  Barcode Scanner Terminal  Store Computer  POS Register
  • 10. Distribution System  Objectives  Track sales  Short replenishment cycle times  Cutoff times for breakfast, lunch and dinner ordering for stores  Order reached supplier and Distribution Center simultaneously (thanks to IT)  Combined/Categorized delivery system  Off – peak hours delivery  Zero Inventory at DCs.  Dedicated 3rd party transportation [Mitsui and Co.]
  • 11. Schematic of Supply Chain of 7-11 Japan Supplier (Frozen) Supplier (Warm) Supplier (Room Temp) Supplier (Cold) Stores Stores Stores Stores Stores Stores Stores Stores