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7-11 Case Study

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

Convenience store supply chains can be responsive by doing several things right. Strategic locations for stores, rapid replenishment, technology deployment, buying trend research, responsive suppliers, and vertical integration are some key areas convenience stores can focus on.
In Seven-Eleven’s case, they are not trying to fill the entire map with stores. Rather, they seek out additional demand in proximity of where other stores already exist. By clustering their locations together, they can distribute products more efficiently, aiding in rapid replenishment. Having a better understanding of customers buying trends allows each store to stock the appropriate SKU’s. Keeping track of buying trends will allow Seven-Eleven to respond to changes in demand of certain products and be more responsive to the demand shifts as they occur. Vertical integration leads to a quick response by shortening the manufacturing cycle of the products they sell. It aids in rapid response by linking the retailing aspect and manufacturing operations as a way to quickly respond to changing demand.

2. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice

The major risk of mirco-matching supply and demand would be demand fluctuation. With demand fluctuation, it can be difficult to accurately gauge which products will need to be replenished on a daily basis. Demand can fluctuate daily based on the store’s location or even what types of events are happening nearby. If the store is located near offices...

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