7-E Japan Business Strategy is the Definition of Success

825 Words Feb 18th, 2018 3 Pages
The responsiveness level, transparency and agility of 7EJ SC was based on a business model strategy which designed storages location, inventory levels and transportation strategy supported by technology (Chopra & Meindl, 2007).
Companies should design business strategy for success on SC implementation (Chopra & Meindl, 2007; Sethi, Yan & Zhan, 2005). Proper capabilities evaluation with regular audit process reduces risk and prevent problems on day-to day operations (Willianson et all, 2011) increasing agility in the SC (Chopra & Meindl, 2007).
Facilities and demand:
Storage and transport products are a costly activity (Slack & Lewis, 2011). 7EJ SC challenge was to design a transport strategy that allows daily products transportation at minimum cost from storages centers to franchise stores. The integrated IT solutions gave the data needed for forecasting demand. To fulfill 7EJ SC strategy each store center was geographically located based on customers demand data (Sethi, Yan & Zhan, 2005). This strategy may generate over or sub capacity problems when products demand follows unpredictable or changing patters (Chopra & Meindl, 2007). But proper data sharing with customers and suppliers increases proactive planning activities and generates positive outcomes following coordination theories for solving…
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