Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SCM at 7 eleven

33,270 views

Published on

This presentation analyses the Supply Chain Management strategy followed at Seven-Eleven , Japan .

Published in: Business, Technology
  • Be the first to comment

SCM at 7 eleven

  1. 1. Seven eleven japan co<br />Sourabh Jain , 10HM30<br />ShirsenduSahoo , 10HM27<br />
  2. 2. 1) What are the ways in which a convenience store can be responsive and what are the risks associated ?<br />High Density of Stores in a given area .<br />Efficient and rapid collection , process and feedback of POS data .<br />Multiple deliveries to all stores of fast moving items like food .<br />RISK : Cost management , Quality to be maintained , correct data analysis<br />
  3. 3. 2)Is 7-11 trying to micromatch supply and demand with rapid replenishments . What are the risks ?<br />The demand for goods like food stuff is continuous but varies very quickly even within a day . <br />In order to satisfy this fluctuating demand , the distribution system of 7-11 is very responsive and is supported by the IT system .<br />RISK : High costs of operation . If IT system fails , this idea will not work .<br />
  4. 4. 3)What has 7 11 done in its choice of facility location , inventory management , transportation and information infrastructure to support its SCM strategy ?<br />Market Dominance strategy : Establish stores in areas where there are already stores.<br />Total Information System :<br /> Installed in every outlet and linked to HQ , Suppliers and 7-11 distribution centers . <br /> Uses ISDN to collect , process and feed back POS data quickly . <br />Inventory Management : Rapidly moving items were kept in enough quantities while slow moving items would be replaced by new ones . The basis is the TIS .<br />
  5. 5. Distribution System : <br /> Flexible to alter delivery schedules . <br /> Store orders , supplier immediately receives order and sends order by truck to Distribution center .<br />Combined Delivery System : <br /> Delivery of products from different suppliers was directed into a single truck . <br /> All deliveries were done at off peak hours and one truck delivered to many stores in one trip .<br />
  6. 6. 4)Why 7-11 does not follow Direct-Store delivery , Why does it use Distribution centres and what are benefits of this policy ? When is Direct Store Delivery better ?<br />Combined Distribution centers was introduced by 7-11 so that it always had fresh products ie offer short replenishment cycle times . It also allowed for careful tracking of sales .<br />With Direct Store Delivery , the stores don’t need to maintain a distribution system as manufacturers themselves take care of that . So there is cost efficiency , but responsiveness of manufacturers to fluctuating demand is suspect…<br />
  7. 7. 5)Review 7dream . Will it be more successful in US or Japan , why ?<br />7Dream is an e-commerce company of 7-11 which allowed 7-11 store customers to pick up their online purchases at the local convenience store rather than have home delivery .<br />It uses the existing distribution system and hence will not add significantly to 7-11’s costs .<br />Also the stores are easily accessible . <br />
  8. 8. We believe that 7-dream will be more popular in Japan because :<br /> 1) Store density is higher than that in US . So accessibility is better .<br /> 2) Americans do not mind having the product delivered directly to their home . They would not go all the way to a store to pickup some item when for a few dollars , somebody would just deliver it to you ….<br />
  9. 9. 6)Pros and cons of introducing CDC’s in US .Stores are also supplied by wholesalers and DSD by makers . <br />Pros :<br />Ensures Fresh supply of items<br />Operational efficiency<br />Cons :<br />Wholesalers may have issues because of these distribution centers<br />Manufacturers may prefer Direct Store Delivery as they have more control here . <br />
  10. 10. 7)Pros and cons of having a distributor replenish convenience stores vs 7-11 managing its own distribution function ?<br />Pros :<br />Managing the distribution system is entirely the distributor’s headache and not 7-11’s<br />May be cost effective.<br />Cons :<br />Less control over replenishment cycles and / or quality of items<br />May not be as responsive as having own distribution function .<br />

×