7-11 Japan
TABLE OF CONTENT
Executive Summary 1
1. Case Background 2
2. Facilities* 3
3. Transportation* 5
4. Information* 7
5. Inventory* 10
6. 7-Eleven in the United States* 11
7. Conclusion 11
Appendix 1 12
Appendix 2 13
*Note:
The content (page 3 to 11) is based on questions 1, 2, 3, 4 and 6, page 88 of the textbook “Supply Chain Management: Strategy, Planning & Operations” by Sunil Chopra & Peter Meinld (Pearson Education, 3rd Edition).
• Generally, questions 1 and 3 are answered by four categories of “Facilities”, “Transportation”, “Information” and “Inventory”. In each section, there is discussion about practices that SEJ has done or firms should do and the risks involved.
• Questions 2 and 4 are answered mainly in section 3 “Transportation”.
• Question 6 is discussed in section 6 “7-Eleven in the United States”
EXECUTIVE SUMMARY
The case study reports about the Supply Chain Strategy of Seven Eleven Japan (SEJ), the largest convenient store operator and franchisor in Japan.
Seven Eleven Japan provides several helpful understanding about achieving supply chain strategic fit in the convenient store industry. In this industry, responsiveness of the supply chain is the most important factor.
Firstly, SEJ has a set of facilities that are strategically responsive. Its facilities are decentralized in terms of both location and capacity. The report also discusses about the benefits and risks involved.
Secondly, SEJ’s transportation system is not only relatively efficient but also responsive and capable of rapid-replenishment. The system is a cross-docking transportation model with goods flow through distribution centers. Advantages as well disadvantages of the model are discussed.
Thirdly, SEJ invested in a powerful information system that allows rapid and efficient communication. Point of sales data are utilized to bring about a competitive advantage and a smooth cooperation of with suppliers. Features,
Executive Summary 1
1. Case Background 2
2. Facilities* 3
3. Transportation* 5
4. Information* 7
5. Inventory* 10
6. 7-Eleven in the United States* 11
7. Conclusion 11
Appendix 1 12
Appendix 2 13
*Note:
The content (page 3 to 11) is based on questions 1, 2, 3, 4 and 6, page 88 of the textbook “Supply Chain Management: Strategy, Planning & Operations” by Sunil Chopra & Peter Meinld (Pearson Education, 3rd Edition).
• Generally, questions 1 and 3 are answered by four categories of “Facilities”, “Transportation”, “Information” and “Inventory”. In each section, there is discussion about practices that SEJ has done or firms should do and the risks involved.
• Questions 2 and 4 are answered mainly in section 3 “Transportation”.
• Question 6 is discussed in section 6 “7-Eleven in the United States”
EXECUTIVE SUMMARY
The case study reports about the Supply Chain Strategy of Seven Eleven Japan (SEJ), the largest convenient store operator and franchisor in Japan.
Seven Eleven Japan provides several helpful understanding about achieving supply chain strategic fit in the convenient store industry. In this industry, responsiveness of the supply chain is the most important factor.
Firstly, SEJ has a set of facilities that are strategically responsive. Its facilities are decentralized in terms of both location and capacity. The report also discusses about the benefits and risks involved.
Secondly, SEJ’s transportation system is not only relatively efficient but also responsive and capable of rapid-replenishment. The system is a cross-docking transportation model with goods flow through distribution centers. Advantages as well disadvantages of the model are discussed.
Thirdly, SEJ invested in a powerful information system that allows rapid and efficient communication. Point of sales data are utilized to bring about a competitive advantage and a smooth cooperation of with suppliers. Features,
References: 1. Chopra, Sunil and Peter Meindl. 2007. Supply Chain Management: Strategy, Planning & Operations. 3rd Ed. Pearson Prentice Hall. 2. Whang, Seungjin 2001. Seven Eleven Japan. Stanford Global Supply Chain Management Forum. SGSCMF-003-1998 (Rev. 2002) 3. Lee, Hau L. "The Triple-A Supply Chain." Harvard Business Review 82, no. 10 (2004): 102-112. 4. "Cross docking & Cross Dock Applications." Benchmark Logistics LLC. http://www.benchmarkscm.com/cross_docking.html