Seven Eleven Company

1079 Words Jan 18th, 2010 5 Pages
SEVEN-ELEVEN JAPAN CO

Q1) A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?

Ans) There are following ways to make convenience stores responsiveness.

• To maintain high inventory level

• By removing implied demand uncertaininty.

• By quick replenishment of products or time management.

• High Information system can also make convenience store responsive and decrease the other driver cost too e.g. transportation cost, holding cost etc.

• Facilitate the customer by location and increase in capacity.

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Ans) Seven-eleven does not allow direct store delivery in Japan, because they are serving in cluster area where 50 to 60 stores had already existed. They have so many no of stores and they can’t handle it without middle man. Distribution centers allow the companies to be flexible in the alternation of delivery as per the demand of customer.

When there are less no of stores. Distribution is also not so much needed when the people are more prices conscious. When the order is large, in this the middle man is not so necessary, to reduce per unit cost.

Q5) what do you think about the 7dream concept for Seven-Eleven Japan? From a supply chain perspective, is it likely to be more successful in Japan or the United States? Why?

Ans) 7dream.com was an e-commerce concept in which they want to convenience & easily accessible to customer at every place where customer wants and it’s also purpose is to eliminate the distribution cost. The MIS should be strong for operating the site for delivery. It is successful in Japan, because the no of stores in Japan is more as compare to USA. Because of so many stores in Japan it is easy to success in e-commerce business as compare to USA. The customers of Japan visit more to convenience stores as compare to Japan.

Q6) Seven-Eleven is attempting to duplicate the supply chain structure that has succeeded in Japan in the United States with the introduction of CDCs. What are the pros and cons of this approach? Keep in

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