By: ihab Mohamed tarek

College of International transport and logistics

Ihab Mohamed Tarek

ID: 12105180

Introduction to Supply chain management

Dr. Ahmed tarek

Seven-Eleven

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By: ihab Mohamed tarek

1-What inventory they going to use (product availability or product Variability)

When to transport

Where the facilities going to be (size, location, capacity)

The risks in this system are the costs of demand uncertainty. If demand patterns change dramatically, or the customer base changes, then it is left with an operation that is not needed.

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3- Seven-Eleven Japan has chosen to be highly responsive operation and has chosen a supply chain design that supports this drivers.

Facility location

its fundamental network expansion policy on a market dominance strategy. Entry into any new market was built around a cluster of 50 to 60 stores supported by a distribution center. Such clustering gave Seven-Eleven Japan a high-density market presence and allowed it to operate an efficient distribution system .This strategy can lower the inventory handling cost.

Inventory management

The food items were classified in four broad categories:

chilled-temperature items including sandwiches, delicatessen products, and milk warm-temperature items including box lunches, rice balls, and fresh bread Frozen items including ice cream, frozen foods, and ice cubes Room-temperature items including canned food, instant noodles, and seasonings.

Seven-Eleven responds very quickly to order, with store manage rapid replenishment orders less than one day before they are supplied. That reduce the inventory holding cost.

Transportation

The supplier didn’t delivery products to shop directly, instead of delivering them to the distribution center that can minimize the trucks runs as well as transportation cost

Information infrastructure

The Total information System installed in every outlet and linked to headquarter, suppliers, and the Seven-Eleven distribution centers. The first online network linking the head office, stores, and vendors was established in 1979, though the company did not collect point-of-sales (POS) information at that time. In 1982. Until 1991 an integrated services digital network (ISDN) was installed. Linking more than 5,000 stores, it became one of the world's largest ISDN systems at that time.

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By: ihab Mohamed tarek

4- The advantage of using distribution center system is reducing the number of vehicles of delivery service to each store.

It is more appropriate to use direct store delivery when the goods with short expired period so that it can minimize the time of transporting.

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5- It was successful system in japan, because there is no additional transportation cost from delivering the product to consumer homes. In japan most of Japanese customers preferred to pick up their online purchases at the local convenience store where they are visit their local convenience stores more frequently.

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7- Advantage is less transportation, material handling, and labor costs and that reduced the delivery time spent at each store. Seven-Eleven, offered three times- a-day store delivery of all (of the fast-food items). Such as Bread and other fresh food were delivered twice a day. The distribution system was flexible enough to alter delivery schedules depending on customer demand.

The disadvantage unable to reduce the number of vehicles required for daily delivery service to each store, even though the delivery frequency of each item was quite high.

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