Supply Chain of 7 Eleven
1. Describe the type of supply chain used by 7-Eleven. For example are they agile, adaptable, aligned?
7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and recent “Undercover Boss”) at the conclusion of his Tuesday morning keynote address at the IFA 2011 Annual Convention. Noticing a need to change, 7-Eleven turned their whole outlook around, focusing on the franchisees instead of focusing on the headquarters of the organisation. After all, the franchisees are the ones that work at ground level with customers on a day to day basis, establishing relationships and recognising customer needs. 7-Elevens response to a changing marketplace yielded significant benefits and further more allowed the implementation of technology and supply chain integration to increase functionality.
An efficient supply chain maximises planning, organising and helps distribute a flow of the organisations product to end customers. This is done through implementing innovative ideas and technology as a part of effective business-to-business networks.
In regard to 7-Elevens supply chain, there were definitely some major factors implemented that wreaked great results. In 2002 7-Eleven signed a 7 year contract with EDS throughout the united states. As stated by Deepak Patel (the integration service line director at EDS), the purpose of this signing was to implement an “XML-based integration system to automate the supply chain process for 7-Eleven’s more than
7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and recent “Undercover Boss”) at the conclusion of his Tuesday morning keynote address at the IFA 2011 Annual Convention. Noticing a need to change, 7-Eleven turned their whole outlook around, focusing on the franchisees instead of focusing on the headquarters of the organisation. After all, the franchisees are the ones that work at ground level with customers on a day to day basis, establishing relationships and recognising customer needs. 7-Elevens response to a changing marketplace yielded significant benefits and further more allowed the implementation of technology and supply chain integration to increase functionality.
An efficient supply chain maximises planning, organising and helps distribute a flow of the organisations product to end customers. This is done through implementing innovative ideas and technology as a part of effective business-to-business networks.
In regard to 7-Elevens supply chain, there were definitely some major factors implemented that wreaked great results. In 2002 7-Eleven signed a 7 year contract with EDS throughout the united states. As stated by Deepak Patel (the integration service line director at EDS), the purpose of this signing was to implement an “XML-based integration system to automate the supply chain process for 7-Eleven’s more than
References: Strong, S 2009, 7-Eleven improves supply chain process, Franchising, Dallas, 2009, 7-Eleven® Appoints Supply Chain Exec As New Logistics VP, News Room SecurityPlus, 2012, Vcom at 7-Eleven, SecurityPlus Health Business Week, 2010, 7 Eleven, Inc.; 7-Eleven Gives Back With '7-Eleven Coffee Cup With a Cause ', ProQuest The print edition, 2010, Japanese online retailing is on the rise, and its champion is spreading its wings, TheEconomist Enos, L, 2001, One Year Ago: 7-Eleven To Tackle E-Commerce, Japanese Style, CommerceTimes 7-Eleven Canada, 2012, SpeakOut 7dream, 200, 7dream.com Open for Business Wolverton, T, 2002, 7-Eleven puts Net shopping in stores, CNET