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Supply Chain of Seven-Eleven in Japan

In: Business and Management

Submitted By kstnicole
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Pages 6
1. What has Seven-Eleven done in its choices of facility locations, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?

Seven-Eleven has two levels of facility locations, one is distribution center, and another is retailer store. Distribution center is a platform to collect and allocate the order from supplier to retail store. Limited number of distribution center supports the near cluster stores. Distribution center focus on efficiency rather than responsiveness to transmit product. Seven-Eleven tends to open the stores in a dense network. It opened the majority of its new stores in areas with existing clusters of stores. Dense stores can maintain a high responsive level to the market. Besides, it also can reduce delivery cost. For instance, the trucks do not need to replenish stocks in dispersed locations. This makes the supply chain be more effective owning to the faster and convenience transportation route.

In view of the inventory management, Seven-Eleven keeps no stock in distribution center and limited inventory in retailer stores. Supplier will immediately deliver stock to distribution center if receive store order. Store only keep daily inventory and place the product in particular time to response customer buying behavior. For example, breakfast, newspaper and fresh food will be placed in the shelves on the morning. The popular dinner box is placed in the evening. Each new item was decided to stock it continuous or not was made within the first few weeks. The stores rather to order more day by day if the item is popular than waste the place to store it.

Seven-Eleven has two levels of transportation and effective delivery methods. Seven-Eleven decided an effective delivery method, which called, combined delivery system. The truck deliver stock…...

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