Seven Eleven Japan Supply Chain

seven cardinal japan Supply ChainEstablished in 1973, Seven-football team japan propagate its first barge in in Koto-ku, Tokyo, in May 1974. In 2004 it was ready by the Ito-yokado group, which also managed a chain of extremely markets in lacquer and owned a majority share in southland, the company managing seven- 11 in the United States. Seven-Eleven lacquer realized a phenomenal growth between the years of 1985 to 2003. The Competitive strategy of Seven Eleven Japan is to give High-availability of a flesh of reason adequate to(p) products at reason subject prices. The total of the visits bet per year for whole the Japanese tidy sum is almost 35 time, that office each Japanese go on average 3 times a month to a Seven Eleven Outlet. When it started in Japan the new concept of this investment company was incredibly famous, bothbody same(p)d the concept of Seven Eleven.The stratagem store tote up chain kitty be antiphonal if they focus on what the customer wants . 7- xi knows who is buying which product and at what time, it knows it beca determination the dust is in reality efficient. For each customer the cashier pushes a button with the unsmooth age, and the cash register the time and the kind of product that the client unspoilt bought. Now the system knows who, where and what is sold at any time of the day, the supply chain lavatory be rattling responsive and offer the smashing where it is posited. The first online net encounter was established in 1979, so it proves 7-football team Japan was in front of all others about technologies and supply chain management. Of course they ca-ca some risks doing this, because the population can be bored or move. 7-eleven has to be commissionful about the needs every day, and has to react in truth pronto to all kind of problems they deport to face up. In japan, 7 eleven adopts a strategic fit with the customers they attempt to know what they need, where they need it and when they need it. Every mavin person is important in statistics for them they really care on the demand. The main risk for them is the potentially high cost concerning the transportation. I think when you are a spacious industry like 7-eleven in Japan, to a greater extent than 12000 retailers you cant focus on every single person. Be the biggest company of outlet stores include that you can non have a micro supply chain. The biggest risk is that you cant follow the demand, you go forth be able at the offset, but after a few time in the market the demand will become huge. It is alike much work and if you cant follow, the customers will go to another retailer. 7-eleven must be able to manage with uncertainty. In order to support its supply chain seven-eleven started to remodel the transportation in their supply chain. The number of trucks was really high, and they could use fewer trucks to do all the transportation work. They have diametric kind of trucks for different kind of goods (frozen food , warm food ). The supply chain worked hard every day to find a way to optimize the facilities, and it worked. Now the store order in the morning and receive in the afternoon, everything is really flexible. The emplacement of the store is based on where the demand is, so they are not looking to open an outlet everywhere, but where passel need it and where they will sell more than products. They want to optimize the space where they are located. In less than 10 years they did a lot of progress in technologies, and more in inventory management. Now everything can be controlled on computers, and they know what they need. They work with some companies in order to have the vanquish infrastructure. All the stocks depend on local customer demand, each stores have a different stock. Seven-eleven does not allow direct store voice communication in Japan but has all products flow through its dissemination center. One dissemination center works with 50 to 60 retailers, so each store does nt have to keep in a huge amount of goods that they dont sell. For some years they know what is sold in which store, so its easy for them to know which items each store needs. Direct store tar is more appropriate when the store knows it will sell the product in a short period of time. It also is more appropriate when the store wants the good really quickly, because the customers dont want to wait too much when they really need something. Seven-eleven is known to sell and have almost everything you need, so it is give away not to let shelves empty, it is also not good for the trade constitution if people can look into empty space in the store. We can say that all these shelves crowded of stuffs show that the supply chain is really well manage.Seven eleven used the franchise system in Japan of course it is much easier to franchise the store because if you have too many stores you cannot handle everything. This system counts over 68 percent of the tax income from operations. It su pported Seven Eleven stores to have a high-density market presence. use the franchise system, Seven Eleven got six advantages of the market dominance strategy. First, it boosted the diffusion competency because they opened more retailers, so the distribution center could be closer from an important amount of stores. Second, Improved brand awareness, of course more store you have and more famous you will be, so people finding seven eleven stores everywhere thought it was secure and a good brand. Third, increased system efficiency, if we have a lot of people working on the system and using it, of course it increases the efficiency. Fourth, enhanced efficiency of franchise support go, in the market dominance the number of stores is really important, so more you are in and faster your support dish outs increase. Fifth, Improvement of the advertising effectiveness, in Japan in some places we can find a lot of seven eleven, that means there is a lot of advertising because people are using them to buy anything. Sixth, hold open competitors entrance into the dominant area, managers instead of opening their own retail store, they use the seven eleven franchise system because it is much easier to start and to be in the dominant area at the beginning. As we can see now the franchise system is really important for seven eleven Japan, the system is pretty simple. Both parts, the franchise owner and seven eleven Japan, have responsibilities. First the owners have to manage the store and the staff, make orders and keep abreast the store appearance. In another side Seven eleven Japan manages almost everything in developing the store, orders and accounting. Seven eleven also lead advertising and pay 80 percent of the utility cost. Seven eleven had more than 12000 stores in Japan. In 2004 the size of the regular store increase from 125 to 150 solid meters. The total size of all the seven eleven stores in Japan is about 1530 square kilometers, it means almost 15 times t he Paris size. It is huge for a solid ground small like Japan. Seven Eleven Chain offers more and more services every year, besides products. They gradually added a variety of services that customers could obtain at its stores. They started offering other services in 1987 the system was offering you to have to possibility to pay your Tokyo galvanising Power bills. Later the people could pay other bills, like fluid, insurance, and telephone. This service attracted millions of additional customers every year. Another example that is in 1995 they started to accept remuneration for mail order purchases. Another huge service that they offer is to have an ATM in the shop they started offering this in 2004. The ATM spew was huge, because they started to install in 75 percent of the retailers, with the goal to achieve degree Celsius percent ATM installation. The 7-dream concept arrives at the right time, because in 2000 the mesh is starting to be well used by customers. In Japan peop le work a lot and really hard, so sometimes that understandable they like to shop on internet, choose what they want and clump it up at their convenience store. The 7-dream concept is really useful, but the spoken communication system is likely more successful in a country like the United States, where people love to have the product right off deliver at their homes.Seven eleven in the United States it is the southward largest market in the world for seven eleven. Even if at the beginning several 7-eleven were shut down. The number of retail stores grown after 1998, because the distribution structure was completely different from the Japanese system. In fact in the USA we can see that DSD (direct store delivery) are pretty common, it was unwieldy to see that in Japan. The fresh products obliged 7-eleven to use CDCs (Combined distribution centers), because it was super important to be able to deliver real fresh products like sandwiches, bakery, and bread in time to the stores. A t this time Seven Eleven tried to introduce a new concept in the convenience store system, they wanted to be different than a normal gas station.