Essay on 7- 11 Case Study

1243 Words Mar 19th, 2013 5 Pages
Supply Chain Management
Case Study 1 Seven-Eleven Japan Co.
Background
Seven-Eleven is a famous convenience store. And it is set up its first store in Tokyo in May 1974, it was found by Masatoshi Ito, the company was first listed on the Tokyo Stock Exchange in October 1979 It had increased its share of the convenience shore market since it opened. It success is greatly contributed to its careful planning, and its information system as well as distribution system.
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 risk in each case?
Q3. What has
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Hence reduce the inventory holding cost.
Seven-Eleven uses scanner terminal to read bar codes and record inventory. It is an advanced level of inventory management. This allowed a store manager to forecast sales corresponding to each order accurately.
Transportation
The supplier of each shop won't delivery inventory to appropriate shop directly, instead of delivering them to the distribution center, the distribution center then distribute inventory to appropriate store. This can minimize the trucks as well as transportation cost
Information infrastructure
Seven-Eleven Japan attributed a significant part of its success to the Total information System installed in every outlet and linked to headquarter, suppliers, and the Seven-Eleven distribution centers. In 1982, Seven-Eleven became the first company in Japan to introduce a POS system comprising POS cash registers and terminal control equipment. Until 1991, an integrated services digital network (ISDN) was installed. Linking more than 5000 stores, it became one of the world's largest ISDN systems at that time. The information system allowed Seven-Eleven stores to better match supply with demand.
In 1987, the in-store payment of Tokyo Electric Power Bills is introduced. The company then expanded its utilities that customers could pay their bills in the stores Other than providing services for customers, Seven-Eleven used its information infrastructure to

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