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    Sikandar Akram - Sec B

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    Seven-Eleven Japan's supply chain strategy relies on rapid replenishment of stores to keep inventory levels aligned with demand. However, this approach risks overstocking if demand is not accurately forecast. The system also depends heavily on information technology, so any IT issues could disrupt the entire supply chain. Seven-Eleven has developed several capabilities to support this strategy, including strategically locating distribution centers near stores to enable fast deliveries, using an information system to track inventory and orders across the supply chain, and making deliveries directly to stores in bulk rather than individual deliveries to each store daily. Not using direct store delivery allows Seven-Eleven to centrally manage inventory, reduce vehicle needs and associated

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    Sikandar Akram - Sec B

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    Seven-Eleven Japan's supply chain strategy relies on rapid replenishment of stores to keep inventory levels aligned with demand. However, this approach risks overstocking if demand is not accurately forecast. The system also depends heavily on information technology, so any IT issues could disrupt the entire supply chain. Seven-Eleven has developed several capabilities to support this strategy, including strategically locating distribution centers near stores to enable fast deliveries, using an information system to track inventory and orders across the supply chain, and making deliveries directly to stores in bulk rather than individual deliveries to each store daily. Not using direct store delivery allows Seven-Eleven to centrally manage inventory, reduce vehicle needs and associated

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    Sikandar Akram - Sec B

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    Seven-Eleven Japan's supply chain strategy relies on rapid replenishment of stores to keep inventory levels aligned with demand. However, this approach risks overstocking if demand is not accurately forecast. The system also depends heavily on information technology, so any IT issues could disrupt the entire supply chain. Seven-Eleven has developed several capabilities to support this strategy, including strategically locating distribution centers near stores to enable fast deliveries, using an information system to track inventory and orders across the supply chain, and making deliveries directly to stores in bulk rather than individual deliveries to each store daily. Not using direct store delivery allows Seven-Eleven to centrally manage inventory, reduce vehicle needs and associated

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views4 pages

    Sikandar Akram - Sec B

    Uploaded by

    Sikandar Akram
    Seven-Eleven Japan's supply chain strategy relies on rapid replenishment of stores to keep inventory levels aligned with demand. However, this approach risks overstocking if demand is not accurately forecast. The system also depends heavily on information technology, so any IT issues could disrupt the entire supply chain. Seven-Eleven has developed several capabilities to support this strategy, including strategically locating distribution centers near stores to enable fast deliveries, using an information system to track inventory and orders across the supply chain, and making deliveries directly to stores in bulk rather than individual deliveries to each store daily. Not using direct store delivery allows Seven-Eleven to centrally manage inventory, reduce vehicle needs and associated

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    of 4

    UNIVERSITY OF KARACHI

    KARACHI UNIVERSITY BUSINESS SCHOOL (KUBS)

    SUBJECT: SUPPLY CHAIN MANAGEMENT


    ASSIGNMENT: SEVEN ELEVEN JAPAN
    (CASE STUDY)

    Submitted to:
    MISS WARDAH IRFAN

    Submitted By:
    SIKANDAR AKRAM

    Dated: 29-0CT-23
    Question no 1

    Risks Associated with Seven-Eleven's Supply Chain Strategy in Japan:

    • The biggest risk is overstocking, as the rapid replenishment mechanism could result in surplus
    inventory in stores if customer demand is not precisely projected.
    • Inefficient inventory management can lead to excessive carrying costs and waste, especially for
    perishable products.
    • The system is primarily reliant on information technology, and any technological faults or
    outages might affect the entire supply chain.

    Question no 2
    Capabilities Developed to Support the Supply Chain Strategy in Japan:

    Facility Location:
    Seven-Eleven strategically locates distribution sites to ensure efficient and timely product restocking.

    Inventory Management:
    The company has fast food plants and divides their goods into four different divisions to help with
    shipment. They maintain track of their inventory using a computer system and a graphical order terminal,
    and they scan products as they arrive. Their cash registers keep a careful check on the inventory as well.
    They make certain that things arrive immediately before they are needed, such as sending supper
    ingredients right before dinner.

    Transportation management:
    Seven-Eleven strategically places its locations near distribution centers (DCs). This helps them to deliver
    goods to stores faster. They use trucks that maintain food at the proper temperature and deliver a single
    type of food to multiple stores at the same time. They prefer to make deliveries when there is little traffic,
    although they do not specify when that happens. To speed things up, they also use a scanner system. The
    DCs themselves don't store stuff for long; they mainly help transfer things quickly from one place to
    another.
    Information:
    Information plays an important role in managing the overall procedure. The visual order terminal, scanner
    terminal, store computer, and POS register are the four main components of the information system.
    These parts collaborate to manage inventory, organize deliveries from manufacturers to retail shops, and
    evaluate sales data. The visual order terminal not only tracks sales and orders with suppliers and delivery
    hubs, but it also directs shelf space allocation decisions. The scanner terminal improves delivery
    efficiency, while the store computer, which is network-connected, keeps track of inventory, sales, and
    orders. The POS register stores real-time client sales data as well as demographic data. In essence, the
    information system acts as a centralized control system, coordinating facilities, transportation,
    manufacturing, and distribution to ensure smooth operation.

    Question no 3

    Benefits of No Direct Store Delivery (DSD) in Japan:

    • Everything is managed through a central distribution center. This allows them to keep track of
    what they have and ensure that the products are always in good condition.

    • They don't need as many vehicles to bring goods to stores on a daily basis. This saves money and
    is environmentally friendly.

    • They can load many things onto a single vehicle and deliver them all at once. This improves
    efficiency and saves time.
    Direct store delivery is a good idea for the 7dream delivery concept. But for Seven-Eleven Japan, it is
    usually not needed, unless one store sells something special that is in high demand and is not sold in other
    locations. It is also ideal for unusual, one-time items that are large and heavy, as well as for emergency
    delivery.
    Question no 4

    The 7dream concept is designed to make the most of Seven-Eleven's distribution system and its easy-to-
    reach stores. This concept focuses on using the stores as convenient places for people to pick up and drop
    off items they buy online. This idea has the potential to be successful in both Japan and the United States.

    In Japan, where people frequently visit convenience stores, many customers choose to pick up their
    internet purchases in-store. This fits perfectly with the 7dream concept, providing convenience for people
    who already visit Seven-Eleven stores regularly.

    In the United States, the 7dream concept taps into the increasing trend of online shopping and the
    growing demand for convenient pickup options. This approach can elevate the role of Seven-Eleven
    stores as easily accessible locations for people to collect their online orders, making the stores even more
    valuable to the community.

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