Supply Chain Strategy By Seven a3721

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Supply Chain Strategy by Seven-Eleven p c c

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Efficiency

Supply Chain Structure

Effectiveness

Logistical Drivers

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Q3: Seven-Eleven have done the following:c îc Store assessment that increased productivity of inventories and store space within consumer interface îc Jptimized time and cost in with the help of Seven-Eleven replenishment system îc Efficient promotion in maximizing total system efficiency of trade and consumer promotion îc roduct introduction reflect effectiveness of new product development and introduction activities

îc SEJ is characterized as a major innovator in convenience store operations; however this is not toimply the company preformed radical business process reengineering This continuous improvement is referred to as Total Quality Management, but referred to as kaizen in Japanese These innovations were in fact a sequential series of small changes and improvements, an example ofTotal Quality Management, which have been sustained since development in the early 90¶s and have hadsignificant impact on the business processes îc SEJ started using an Integrated Service Digital Network (ISDN) to link their retail stores with their headquarters. This integrated networkedallowed retail stories to directly access the host computer and central database containing all the collected data and analyses. This essential data is gathered during every single transaction throughoutthe day Strengths: Œc DSD (Direct store delivery) and CDC (Combined distribution centre) makes seven eleven networking strong. Œc Combined distribution system saves time. Œc Seven Eleven effectively does Micro matching of demand and supply. Œc Seven Eleven have various Franchises which also help in stronger branding. Œc Implementation of IT like connecting through ISDN, wide screen graphic display helps in Smoothing of flow of information. Œc Seven Eleven have very effective store management and transportation system Q4: Distribution îc SEJ created a t Delivery rogram to reduce the average number of deliveries to each store from 70 per day in 1974 to less than 10 per day at the present time îc roduct groups that require the same temperature zone are cross-docked at a single distributor and delivered in groups by geographical region îc Trucks follow a strict route schedule that allows only a 10-minute error of margin îc The truck may not spend more than a minute and half at each store and is in constant communication to facilitate emergency situations between store and HQ managers îc SEJ also created a time-distribution system to change the product mix îc Store managers walk throughout their stores carrying a tracking device to check stock levels and sales trends in order to place orders via the ISDN to HQ îc These orders are transferred to wholesalers, manufacturers, and for use inlogistics. Typical orders for fast and fresh food items are placed three times a day, magazines once a day, and processed food items three times a week îc SEJ knows that consumer¶s needs in the morning are completely different in the evening, and distributes the most appropriate items at the different times of the day mhe investment into such an in depth logisticssystem is imperative in order to take advantage of the data-rich decision processes of the company