Established in 1973, seveneleven japan open its first store in kotoku, tokyo, in may 1974. In 2004 it was owned by the itoyokado group, which also managed a. The competitive strategy of seven eleven japan is to provide highavailability of a variety of reasonable products at reasonable prices. The goal of this case is to illustrate how a firm can be successful by structuring its supply chain to support its supply chain strategy. Sevenelevens supply chain strategy in japan researchomatic. Master thesis logistics management in retail industry, 7. Established in 1973, seveneleven japan set up its first store in kotoku, tokyo, in may 1974. Differences between walmart and 7eleven logistic strategy walmart is an american public corporation that runs a chain of large, discount department store.
Supply chain for the synchronization of production and distribution. How 7eleven digitally transformed into the convenience. Differences between walmart and 7eleven logistic strategy. In 2004 it was owned by the itoyokado group, which also managed a chain of super markets in japan and owned a majority share in southland, the company managing seven eleven in the united states. Seveneleven japan stanford graduate school of business. Sevenelevens supply chain strategy in japan can be described as attempting to micromatch supply and demand using rapid replenishment. In 20, convenience store operations from seveneleven japan and other subsidiaries in north america and china contributed 37. Seveneleven rebel lays bare the price of convenience in japan. In november 2005, 7 eleven was taken private by seven eleven japan company, a japanese retailing chain. Itoyokado and seven eleven japan now owns the southland corporation, the us company which originated the seven eleven concept. When analyzing 7eleven japans advanced and innovative management style, the authors of this book highlight the existence of the integrated information system. Download file to see previous pages the success of 7 eleven as a convenience store transformed it to become one of the worlds largest operator, franchisor and licensor of convenience stores, with more than 27,900 units worldwide. Seveneleven japan, which is a subsidiary of itoyokado, is the largest and most profitable convencience store chain in japan, with around 6700 convenience stores, all operating on a franchise basis.
Such clustering gave seven eleven japan a highdensity market presence and allowed it to operate an efficient distribution system. Doc information system of seven eleven saeed nahian. Statistics showed that sales of convenience stores in japan and u. The basic supply chain model at the end of a supply chain is the product andor service that are created by the supply chain for the end consumer. A convenience store chain attempts to be responsive and provide customers. Seveneleven japans success as we have already mentioned is mainly due to the design and. Adhyatma satya wardhana 25203001 nur rahmawati 25203005 prita meilanitasari 25203201 ratih pamelawati 25203204. The case has been picked up from pearsons scm book authored by peter meindl and sunil chopra. How 7eleven digitally transformed into the convenience store. The convenience store industry and seveneleven in japan. All choices made by seveneleven are structured to lower its transportation and receiving costs.
Packaging materials and formats used by 7eleven 7eleven procures all its ownbrand products from outsourced production facilities, prepackaged and ready for distribution to its retail outlets. Points to how seveneleven has used information and aggregation in transportation to improve supply chain responsiveness at a relatively low cost. The achievements of 7eleven have largely influenced this as it is the largest company and most other companies did not achieve the same level of profitability. Conveniencestore chain seven eleven japan sej builds supply chain agility by using realtime systems to detect changes in customer preferences and track sales and customer data at every store. The company was first listed on the tokyo stock exchange in october 1979.
Seveneleven japans competitive strategy is to provide customers the reliability to get what they need, exactly when they need it and where they are. Core operating companies convenience store operations strategy. Adhyatma satya wardhana 25203001 nur rahmawati 25203005 prita meilanitasari 25203201 ratih pamelawati 25203204 2. But the convenience store chain is making some serious moves to digitally transform into a store of the future, exploring e.
To discuss how seveneleven has made consistent supply chain choices to support its business strategy of providing convenience to customers. Eleven, primarily operating as a franchise, is the worlds largest operator, franchisor and licensor of convenience stores, with more than 46,000 outlets. In november 2005, 7eleven was taken private by seveneleven japan company, a japanese retailing chain. In china, that percentage was lower than 1% despite continued growth since. As of 2004, it had 22,648 units worldwide, serving 6 million customers a day. We will analyze the factors responsible for the phenomenal success of the company in the retail. The main risk for seven eleven is the potentially high cost of transportation and receiving at stores. Keep in mind that stores are also replenished by wholesalers and dsd by manufacturers. Established in 1973, seven eleven japan set up its first store in kotoku, tokyo, in may 1974. Supply chain strategy at 7eleven linkedin slideshare.
Supply chain management 711 japan history 7eleven is part of an international chain of convenience stores, operating under seveneleven japan co. As the top chain and the pioneer that started japan s convenience store boom in 1974, seven eleven sets the tone for the industry. Master thesis logistics management in retail industry a case study of 7eleven in thailand master thesi s within international logistics and supply chain management authors. This case study discusses the meteorological rise of a convenience store chain, seveneleven japan in the japanese retail store business. As a franchise owner, you get to leverage our super buying power and offer your customers what they love at great prices without cutting into your profit margins. Sevenelevens supply chain strategy in japan executive summary seveneleven had realized unique growth in the business sector as there was utilization of supply chain strategy of seveneleven and certain performance drivers upon the balance nature business responsiveness and the awareness of certain risks involved.
Seven eleven japan co free download as powerpoint presentation. By 2016, sales of convenience stores in japan represented nearly 9% of the total, up 3% compared with that in 2006. We go big so you can get the benefit of negotiated pricing and terms. All choices made by seven eleven are structured to lower its transportation and receiving costs. Seveneleven japans business model since its establishment in 1973, seveneleven japan sej has always closely tracked changes in society and consumer lifestyles and has taken steps to enhance its own operations to meet emerging trends. Seveneleven japan designed its supply chain with cluster of stores around dcs to facilitate frequent replenishment at its retail store. Once seveneleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support this choice.
The main risk for seveneleven is the potentially high cost of transportation and receiving at stores. Cluster of 5060 stores supported by a distribution center dc. Jan 12, 2018 a 7 eleven may bring to mind thoughts of coffee, gas, and slurpees. Core operating companies convenience store operations. Introduction to supply chain management bus adm351 uploaded by. It is the largest player, with a market share of 46%. Logistics is admitted to be one of the most influential players in any supply chain and those companies who have succeeded in harnessing logistics power, turned it into their main operational tool against its rivals. Hw 1 homework 1page 6066 1 what is seveneleven japans. In 2004 it was owned by the itoyokado group, which also managed a chain of supermarkets in japan and. Thus, the fundamental reason of a supply chains existence is hinged on to serving the endconsumer in the market place. Below is the pricing strategy in 7 eleven marketing strategy. Fundamentals of supply chain management 10 introduction figure 1.
Of these stores, approximately 8,600 were located in japan and operated or franchised by seven eleven japan co. In seveneleven japans case, multiple operations might be shuttered if an apartment building or large employer shuts down or relocates. Seveneleven japan, in its 1994 annual report, listed the following six advantages of the marketdominance strategy. Jan 20, 2017 to discuss how seven eleven has made consistent supply chain choices to support its business strategy of providing convenience to customers. Apr 23, 2016 7 eleven business strategy presentation daniel secatore.
Mar 20, 2015 conclusions the information system allowed seveneleven stores to better match supply with demand collaboration with suppliers is enabled through sharing 7elevens data analysis through a program called 7exchangee data system for category management, which suppliers access through secure website, can provide insight that lead to new. Seveneleven japans competitive strategy bus adm351. Itoyokado and seveneleven japan now owns the southland corporation, the us company which originated the seveneleven concept. The distribution strategies of convenience stores chain in china. Eleven, primarily operating as a franchise, is the worlds largest operator, franchisor and licensor of convenience stores, with more. Pdf supply chain analysis of seveneleven japan researchgate. Breakdown of sales by product category nonconsolidated, for fy2006 nonfood 28% daily food % fast food 29% processed food 30% core operating companies convenience store operations strategy sandwiches annual sales quantity. The note examines the fundamentals of supply chain management and provides a framework for choosing the right supply chain to fit the product a company is making and the environment it is in. Sej continues to implement reforms to support continued progress.
Seven eleven japan, which is a subsidiary of itoyokado, is the largest and most profitable convencience store chain in japan, with around 6700 convenience stores, all operating on a franchise basis. First i will explain the seven eleven supply chain and how achieving strategic fit. Gross profit is equal to net sales minus net cost of goods sold, which is calculated by subtracting costs of inventory loss, disposal of merchandise, and rebates from gross cost of goods sold. The total of the visits number per year for all the japanese people is almost 35 times. Points to how seven eleven has used information and aggregation in transportation to improve supply chain responsiveness at a relatively low cost. In 2004 it was owned by the itoyokado group, which also managed a chain of super markets in japan and owned a majority share in southland, the company managing seveneleven in. This presentation discusses the supply chain drivers and associated tradeoffs for each. Supply chain homework 1 homework 1 1 what is seveneleven. Seven elevens supply chain strategy in japan can be described as attempting to micromatch supply and demand using rapid replenishment. Essay on supply chain of 7 eleven 2466 words bartleby.
As the top chain and the pioneer that started japans convenience store boom in 1974, seveneleven sets the tone for the industry. Seveneleven japan realized a phenomenal growth between the years of 1985 to 2003. A 7eleven may bring to mind thoughts of coffee, gas, and slurpees. Below is the pricing strategy in 7eleven marketing strategy. Download file to see previous pages the success of 7eleven as a convenience store transformed it to become one of the worlds largest operator, franchisor and licensor of convenience stores, with more than 27,900 units worldwide. Seven eleven is part of an international chain of convenient stores. Achieving efficiency with emphasis on responsiveness o inventory strategy. Case analysis what is the future outlook for seven eleven stores in usa. One critical component of successful supply chain management scm is tight inte gration among supply chain partnersby sharing information. Seveneleven is attempting to duplicate the supply chain structure that has succeeded in japan and the united states with the introduction of cdcs. Seven eleven s supply chain strategy in japan executive summary seven eleven had realized unique growth in the business sector as there was utilization of supply chain strategy of seven eleven and certain performance drivers upon the balance nature business responsiveness and the awareness of certain risks involved.
Seveneleven is revolutionising grocery distribution in japan. Established in 1973, seven eleven japan open its first store in kotoku, tokyo, in may 1974. This is because of the key role it plays not only in forming this firms corporate strategy but also in developing its functional strategies for logistic support, merchandising. Seven eleven japan co delivery commerce supply chain. With iyg in control, 7eleven japan grew by leaps and bounds, partly due to their masterful supply chain management and inventory control. This note provides an introduction to supply chain management.
This presentation is about supply chain strategy in the 7eleven store. The generic items includes brand sold on every convenient store like coffee, chips, bread, eggs etc. Supply chain management introduction the university of texas at. Sevenelevens supply chain strategy in japan sevenelevens supply chain strategy in japan executive summary seveneleven had realized unique growth in the business sector as there was utilization of supply chain strategy of seveneleven and certain performance drivers upon the balance nature business responsiveness and the awareness of certain risks involved. Japan 7eleven convenience store chain, as the worlds largest chain enterprises, its experience in the logistics distribution of chain enterprises worth learning for. Most of the remaining stores were located in north america. Seveneleven japan convenience store chain introduction. The condition for the seveneleven japan charge royalty and minimum guarantee applies to stores that are open for 24 hours a day. This case describes seveneleven japans logistics and information systems, and how they support its retail strategy. Supply chain management assignment 1 seven eleven in this essay i will analyze and describe the seven eleven supply chain in relation to its strategic fit. Seven eleven japan supply chain analysis term paper. Fundamental to the supply chains operation is the close alignment between seveneleven japans interests and those of its partners.
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