Download - Presentation-Case Study Seven Eleven
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?Question 1
1. A convenience store chain attempts to be responsive and provide customer what they need, when they need it, where they need it. What are some different ways that convenience store supply chain can be responsive? What are some risks in each case?
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Question 1
1. Facilities2. Inventory 3. Transportation 4. Information5. Sourcing6. Pricing
Six drivers of supply chain performance
Answer
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1. Facilities (the “where” of the supply chain)
Locating large number facilities close to customer DecentralizeLarge amount of excess capacity (flexibility)
Number of facilities Responsive Cost Efficiency
RISK!
Question 1 Answer
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2. Inventory -mismatch between supply and demand
Locating large amounts of inventory close to customer High level of availability
inventory Responsive Cost Efficiency
RISK!
Question 1 Answer
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3. Transportation (moves the product between stages in supply chain)
Faster transportationLowers the inventory cost
Speed in transportation Responsive Cost Efficiency
RISK!
Question 1 Answer
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4. Information (connection between various stages)
Get customer order fasterMatch demand better
Responsive Cost Efficiency Complexity Value
RISK!
Question 1 Answer
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5. Sourcing (set of business processes required to purchase goods and service)
Outsourcing if next-day delivery on its own is expensive In-house to maintain control, respond quickly to orders
Responsive Cost Efficiency
RISK!
Question 1 Answer
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6. Pricing (how much to charge customers)
Pricing varies with response time
Price Responsive Cost Efficiency
RISK!
Question 1 Answer
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?Question 3
3. What has Seven-Eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
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Facility location
Market-dominance strategy existing cluster of stores
High-density market50 to 60 stores supported by
only one distribution center(DC)
DC keep no inventory Ensure rapid, reliable
delivery
Question 3 Answer
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Question 3 Answer
7-11 Transportation
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Transportation (cont’)
Combined delivery system System work on trust and did
not require the delivery person Reduced the delivery time spent
at each store Reduce the number of vehicles
delivery service to each store Reduce delivery cost enable
rapid delivery of variety of fresh foods
Question 3 Answer
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Information infrastructureTotal information System installed
in every outletPOS cash registers and terminal
control Integrated services digital
network (ISDN) high-speed, online communication
Graphic order terminal, Scanner terminal, Store computer, POS
Allowed Seven-Eleven stores to better match supply with demand
Question 3 Answer
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?Question 5
5. 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?
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JAPAN is likely to be more successful!
Question 5 Answer
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Question 5 Answer
Japan have more number of stores per areafor drop-off customer’s goods
USA – 6,262 stores
Japan – 12,071 stores
Reasons :
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Nature of Japanese people- Usually go to convenience
store- High e-commerce
Don't need to disclosure their address personal privacy
More convenience
Question 5 Answer
Reasons :
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Thank you Group #5 members
Puangyoykeaw, Sarintorn (Tarn) 2B1207Chimcherd, Vandee (Noi) 2B1204Yusuf, Neri Meirianti (Mia) 2B1212 Alfred Tsilizani 2B1210