S UPLLY C HAIN

7- Eleven Case Study Dr. Ahmed Sobhy

Prepared by: Marwa Aly Hatem Tantawy Menna El Shenawy Mai Sammy Yousra Refaeey

Jan 1st , 2011

7- Eleven Case Study

7- eleven in Japan -

Jan 1st , 2011

The initial strategy followed: It was a combined strategy between franshaise network & ownership stores , since the main strategy targeted at that time was dominant strategy to cover a whole japan. To ensure the effeicency by distribution center . The trade off to keep the efficiency level for the whole stores whther franchaised & owned stores by keeping the key responsibilities in hand of 7-eleven management such as provid ordering system & selecting & develop supply & marchendise For instance , it affords adequate risks due to not full control on the franchaise , but it has been recovered by splitting the responsibilities & keeping as mentioned above the key responsibilities to grantee certain level of services & quality , by this strategy the y succeeded to cover all japan and banned any new competitor to threat them. Following for their strategy to cover the whole Japan , they scattered their stores based on clustering the distribution based on (the concentrated commercial stores & geographically places to cover rural places ) They have centralized the distribution system for both the franchised store and owned stores using . Initially they have started to follow push strategy by keeping stock in their individual stores , Id say this a good strategy followed at that time where the no. of stores were limited compared to now especially they followed smart clustering based on temp. preservation. It might be cresitised that food is not freshed as the strategy followed in USA , but this was a result of consumers needs understanding , as japaneese are not careing with fresh food as Americans , also it was no compition in japan fron fresh food based as starbuck offer. For the ongoing growth: they have adapted more products & numerous services to be ideal convient store to facilitae the daily life activities & to extend customer preferred to pick up their online purchases at the local convince store rather than have them delivered to their home due to high frequency of the customer visiting the store this was done through 7 dreams.com company that was establishd in japan, due to the recent customer behavior changes of the 7eleven customers reaching 92%. Following to enhance the responsiveness without extra expenses but getting rid of the inventory by capatilizing effiecint information technology to link between headquarters, stores & vendors /suppliers with real time easily accessing to better match supply with demand & better

7- eleven in USA: -

Jan 1st , 2011

Introducing fresh foods is the most ultimate goal So They had relied on Direct store delivery ( DSD) and DC in some cases to replenish through wholesalers & manufactured They had a dequate marketshare in USA, especially they focused to get most of revenue from nongasolin products by trageting the fresh food, converserly other brands relying on gasolin products than whatever else.

Difference between the distribution system in USA & Japan: In japan: they relied on their distribution to utilize DCs , as mnay stores scattered in a whole japan & theres no need for fresh food.

In USA: they relied on mixing between the DCs & DSD as no. of stores is not as japan and introducing fresh food had the most of priorities.