REPORT

ON
Case Study: Seven-Eleven Japan Co.
BY:

Contents
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EXECUTIVE SU!RY................................................................................"
B!C#$ROUN%:............................................................................................&
!N!'YSIS:................................................................................................... (
...........STERN$T)S * RIS#S++++++++++++++++++,"
CONC'USION+++++++++++++++++++++,&

EXECUTIVE SU!RY
With the proper utilization of proper supply chain practices Seven-Eleven had realized unique
growth in the business.Seven-Eleven have found better ways of developing their CDC as well
as DSD that is through information nowledge e!pertise with their business functions to
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deliver frequent product services of varied items and the engagement assurance given to the
customers.
"he advantage of successful and improved implementation of chain Seven-Eleven effectively
tripled the buying power and also accessed new products.. "he distribution systems of Seven-
Eleven were re-engineered and the Combined Distribution Centers #CDC$ have been
introduced by the company to better manage the flow of products into the stores. With the
implementation of CDC and DSD #Door Store Delivery$ centers allow smoothing of
distribution operation to the stores and the provision of better quality and better information
of supply and deliveries is available and the control of the supply chain is achieved. "he
implementation of technology %&S #%oint of Sales$ helps to move ahead and give addational
boost to the profit of seven-eleven.
B!C#$ROUN%:
Seven-Eleven 'apan Company was founded in the year ()*+ and had its first store in
"oyo, and by the year -../, 0to-1oado group owned the company and thus, managed
successful supermarets in 'apan and that, Seven-Eleven had realized unique growth in the
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business sector. "his report will be focusing and deal with several discussion and case
analysis of Seven-Eleven 'apan Company within the rising truth of Seven-Eleven as a leading
convenience store chain as it can be within 'apanese retail business functions. "he critical
analysis will incur as to how the company does its business operation reflecting their supply
chain management as well as upon valuing their logistics into a more effective and reliable
perspective. "he understanding and e!ecution of supply chain process and outcomes have to
be present and supply chain analysis of Seven-Eleven is given more weight and value. "he
utilization of supply chain strategy of Seven-Eleven and such performance drivers upon the
balance nature business responsiveness and the awareness of certain riss involved.


ANALYSIS:
!--o.d/n0 to seven-eleven 1filling in the entire map of Japan is not our priority. Instead, we
look for demand where Seven-Eleven stores already exist, based on our fundamental area
dominance strategy of concentrating stores in specific area2
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Seven Eleven continues to grow during the prolonged ()).s downturn. 2rom ())( to -..-
the stores increased from ()3.+ to /-.... 4s percentage of all retail stores in 5apan this
shows an increase from (.-6 to +.-6. 7y -../ its operating income reaches to (38.* billion
yen, positioned it as a leader not only in convenience store but also in 'apan9s retail industry.
E!tensive franchise networ played a ey role in the daily operations. With the help of
franchise networ they:
7oosted distribution efficiency
0mproved brand awareness
0ncreased system efficiency
Enhanced efficiency of franchise support services
0mproved advertising effectiveness
%revent competitors9 entrance into the dominant area
"hus improved franchise networing helps seven-eleven to increase their profit allow it to
continue its domination.
3/s-al yea. end/n0 /n
3e4.ua.y 5/n
BI''ION YEN6
7888 54/ll/on yen6 788&54/ll/on yen6 !N!'YSIS
59 INCRE!SE6
Net sales (,)3/ -+/+.- ().+(6
Revenue +-*.. //8./ +3.-(6
5
O.d/na.y /n-o:e (/..- (3;.) -../*6
Net In-o:e 3;.- )(.8 +/.(36

Nu:4e. o; sto.es ;,(8+ #in -...$ (.,+.+#in -../$ -3.+;6
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With the leading domination in the maret Seven-Eleven in -../ change the standard size
of new stores from (-8 square meters to (8. square meters.
Seven-Eleven starts too emphasized more on .e0/onal :e.-<and/s/n0 to attract the local
preferences in terms of food items, beverages, magazines etc. "his helps them to increase
the sales:
ITES 7887 5Sales /n
4/ll/on yen6
788&5Sales /n 4/ll/on
yen6
!N!'YSIS 59
INCRE!SE6
P.o-essed 3oods 3;(.8 *-8./ 3./86
3ast 3oods 3/-.- *././ ).3)6
3.es< 3oods -3/.) +.8.. (8.(/6
Non 3oods 8/..- 3-/.. (8.8-6
Total -,(-;.* -,+8;.; (..;(6
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"hereafter seven eleven 5oin hands with <EC. "his helps them to design with better
information system that was 0SD< enabled with e-commerce. <EC develops graphic order
terminals, scanner terminals, store computer and pos register. With the help of graphic order
terminal implementation seven eleven equipped itself with better visibility and networing.
With -o:4/ned del/ve.y syste: they have reduced the delivery time, reduced number of
vehicles. "hey have managed the vechiles in such a way that in :
Ve</-les /n ,=>& Ve</-les /n ,==& !N!'YSIS 59
%e-.ease 6 Cost
sav/n0 /n t.anspo.t
>8 ,, ;/.-;6
8
9
Supply C<a/n St.ate0y 4y Seven-Eleven
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Competitive Strategy
E;;/-/en-y Supply C<a/n St.u-tu.e E;;e-t/veness
'o0/st/-al %./ve.s
C.oss-3un-t/onal %./ve.
0n short we can say that Seven-Eleven have done the following:
Store assessment that increased productivity of inventories and store space within
consumer interface
&ptimized time and cost in with the help of Seven-Eleven replenishment system
Efficient promotion in ma!imizing total system efficiency of trade and consumer
promotion
%roduct introduction reflect effectiveness of new product development and
introduction activities
STREN$T)S * RIS#S
St.en0t<s:
DSD #Direct store delivery$ and CDC #Combined distribution centre$ maes seven eleven
networing strong.
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Spp!y C"ai# Strategy
$a%i!itie& I#ve#tory 'ra#&portatio
#
I#(ormatio# Sor%i#g )ri%i#g
Combined distribution system saves time.
Seven Eleven effectively does =icro matching of demand and supply.
Seven Eleven have various 2ranchises which also help in stronger branding.
0mplementation of 0" lie connecting through 0SD<, wide screen graphic display helps in
smoothning of flow of information.
Seven Eleven have very effective store management and transportation system.
R/s?:
Dedicated employees needed as there is a hard wor for the inventory movement.
0mproving ability means reducing constraints is the biggest ris.
4s seven eleven had drastically reduced the vehicles they don9t have any bacup plans. 0f the
vehicle .
breas down the system of delivery breas down.
Seven eleven is connected through 0" systems if 0" system breas down their whole system
breas down which is the biggest ris in their networing.
CONC'USION:
"hus we realize that by integrating the supply chain certain constraints of business can
be minimized and customer service levels can be improved through e!ecuting information
technology systems. "hus, with the help of models lie CDC and DSD incorporate better,
more valuable supply chain networ e!pecting solid store chain ground. =oreover,
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adaptation of 0" implementation incurs a substantial use for Seven-Eleven. "he company in
its business services can require precise infrastructure within their distribution centers
enabling effective information flows and streamline supply logistics. "hus right logistics and
collaboration upon providing imperative business operation benefits considering the ma5ority
of customers worldwide.

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