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Supply Chain Mangement

In: Business and Management

Submitted By nineji
Words 1118
Pages 5
Supply Chain Management
Case study: 7-eleven Japan Co.

Name: Chow Lai Ting
Student number: 113226
Section 5

Background

Seven-Eleven Japan was established in 1973 with its first store opened in Tokyo. It is considered an outstanding and well-known enterprise in Japan. The rapid growth of Seven-Eleven is also remarkable. In 1985 to 2007, its number of store had drastically increased from 2,299 to 12,034. The annual sales increased from 386 billion to 91.5 billion. Additionally, the company’s return on equity averaged around 14 percent between 2000 and 2004. Seven-eleven is not only the largest convenient store but also the largest retailer with its number of store and operation income in Japan. The reason why Seven-eleven is such successful is its competitive strategy, which is providing a high-availability of product that the customer find it convenient to shop. Thanks to its market dominant strategy and franchise system adapted, and its drivers make the best balance to the trade-off between efficiency and responsiveness, Seven-eleven has considerably become the most successful retail store.

Problems

The problem of Seven-eleven supply chain is that it replies too much on the transportation to make replenishment every day. The store would not have enough inventories if there is any accidents happen since the storage unit in store is very little. The risks associated with the system that Seven-eleven uses are costly with demand uncertainty. When the demand patterns change dramatically, then Seven-Eleven is left with an operation that is not needed. In Seven-Eleven Japan’s case, multiple operations might be shuttered if an apartment building or large employer shuts down or relocates.

Q1. What has Seven-Eleven done in its choices of facility locations, inventory management, transportation, and information infrastructure to develop capabilities that...

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