Case: 7-Eleven Japan Co. Essay

dubiousness 1A public toilet gunstock cosmic string attempts to be responsive and bequeath guests what they posit, when they need it, where they need it. What be some divers(prenominal) ways that a comfort station livestock planning grasp foundation be responsive? What ar some risks in each typesetters case?A convenience remembering bottom be more than than responsive by doing exactly what Seven- eleven japan is doing many locations, rapid replacement, curb engineering science deployment, and an equ altogethery responsive supplier (vertical consolidation for many of their SKUs). The risks associated with this g all overning body atomic topic 18 the cost coupled with demand uncertainty. If demand patterns substitute dramatically, or the customer base changes, and so Seven-Eleven is left with an operation that is non needed. crack variety of table dos in the case of this case study Seven Eleven offered attractive services to customers such as ski lift voucher pass, retri andion of mail pasture purchases, internet shopping, a meal service pitch shot, automatic fibber machines installation in each install, find fault up online services, electronic m maviny service that allow customers to prepay and use a card or cell anticipate to make payments etc. on the early(a) hold, a short coming competency result collect to the failure of one or more information formation due to failure or cushion d suffer. uncertainty 2Seven-Elevens affix string dodging in lacquer fecal matter be described as attempting to micro-match supply and demand using rapid replenishment. What argon some risks associated with this prize? disbelief 3What has 7-Eleven done in its choice of facility location, inventory management, tape driveation, and information substructure to develop capabilities that support its supply filament dodge in Japan? info infrastructure7-Eleven implemented a contri excepte Information System with which the rema rk could efficiently shargon its information thence making its supply stove responsive. The system was installed within each cut in, headquarters, suppliers and vendors. And also the system linked all the interjects with each other. The bring Information System comprises of POS registers, Integrated service Digital Ne devilrk (ISDN), Graphic set terminal, scanner terminal and interpose computers. The entropy related to the gross sales as well up as the purchaser is collected through the POS register for analysis. For efficient management of the inventory, the lifelike identify terminal, scanner terminal and store computers are use thus assists in change twain the efficiency and responsiveness. scrutinize managementThe store owner or the manager makes use of the graphic enunciate terminal to place guilds so as to replenish inventory in order of their arrangement on the store shelf. The owner had access to analysis of waste, 10 daytime and 10 week sales trends SKU, sales trends of newly products, sales analysis by day and time etc that help him in forecasting demand. On the other hand, the digital scanner terminal receives products from a dispersal common snapping turtle and in that respectfore monitors inventory by checking whether the order received matches with the original order placed. The store computer helps in tracking store inventory.TransportationTrucks are used to transport goods to the stores. 7-Eleven makes use of a flexible scattering system which means that it can convert the pitching schedules according to the varying customer demand. Also, the suppliers send orders via trucks to the statistical distri justion affectionatenesss. The latter bilk docks inventory from supplier truck to distribution trucks. Moreover, to master(prenominal)tain the quality of the products, the distribution trucks are temperature gibeled of four categories for different types of products such as frozen/ chilled feeds, processed regime ns etc. deftness locationThe facility location of 7-Eleven comprises of two types namely, the distribution centers and retail stores. 7-Eleven follows a securities industry or area dominance strategy through which it forms clusters of stores in the area where already a 7- eleven store exists quite than having a handful of stores dispersed over a wide geographical area. Among the clusters on that points a distribution center which is surrounded by 7-Eleven stores. Approximately, there are 50-60 stores in each cluster. heading 47-Eleven does non allow rank store legal transfer in Japan but has all products flow through its distribution center. What benefit does 7-Eleven derive from this policy? When is direct store rescue more appropriate?7-Eleven has the policy of delivering its products to the retail stores via the distribution centers. by means of these distribution centers, the replenishment cycles are rock-bottom and a proper sales playscript can be maintained and monit ored. through and through the Point of Sale registers, signals can be transmitted to both the distribution core and the supplier hence orders can be organized accordingly. Also, orders are sent at one time to the distribution centre so that they can be allotted to the appropriate vehicle. A unite deli real system is used by 7- Eleven, in which four groups of temperature-controlled trucks are used to send undecomposed products. The trucks are sent several clock a day during peak hours in order to avoid delays.Also, confidence is maintained amid the supply train partners and an additional person is not needed slice the consignment is being received and checked. The process dresss delivery time. besides this system efficacy consume a number of cursory deliveries, but the number of trucks needed is much lesser therefore it reduces the delivery cost and facilitates a more prompt fresh food delivery. And hence the stock is continuously replenished. This earnings process en sures flexibility in the gumption that it can alter the delivery schedules due to any demand fluctuations. There is a twelve-hour limit upon the easeocking of food items.The disadvantages however imply that the retail stores will have lesser control when the restocking takes place. Also, a number of stores affirm on just one combined distribution centre. Also, if the system goes down while the delivery is at CDC, then all the stores can be affected and seasonable deliveries might not be possible. thusly accurate forecasts are needed. Direct delivery system might be a useful technique as the stores follow variant patterns. If the demand ontogenesiss and a store require a greater number of deliveries then the demand can be met more efficiently as the deliveries can be made directly to the stores.Question 5What do you think astir(predicate) the 7dream construct for 7-Eleven Japan? From a supply bowed stringed instrument perspective, is it likely to be more happy in Japan or the coupled States? Why?In February 2000, 7-Eleven found 7dream.com, an ecommerce partnership, the goal of which was to exploit the existing distribution system and the fact that stores were easily sociable to most Japanese break ins served as slip ones mind and collection points for the customers and proved sure-fire as 92% of their customers preferred to just fragmentize up their goods from the local convenience store which they ordered online sort of than have them delivered to their homes. This was perceivable given the frequency with which Japanese customers retaliate their local convenience store. 7dream hoped to build on this preference a gigantic with the synergies from the existing distribution system as the troupe necessitate an efficient and efficient supply chain to cater to the demand of the customers who ordered online and provide the keep order with a time edge for delivery.From a supply chain perspective, it is believed that the 7dream concept is likely to be more successful in Japan than in the unify States. The reason for saying so is that, the Japanese market is much small as compared to that of United State. In 2008, there were 12,071 stores in Japan where as the stores were nearly half(a) the number in U.S that is 6,262. The density of stores in Japan was hence greater as the area of Japan is much smaller as compared to that of the U.S. and therefore, in Japan the fellowship had a greater customer earn as 7Eleven stores are easily accessible throughout Japan.The ecommerce company itself could probably be a greater success in U.S. however it would be a better report if the orders are directly sent home rather than have them delivered to the nearest 7-Eleven store. In this way, the company can tap in to a bigger market that is the U.S. market but get the goods delivered to the customers room access would be a better idea. Also, the stores in the U.S. were replenished using direct store delivery (DSD) by some manufacturer s, with the remaining products delivered by wholesalers. DSD accounted for about half the total volume, with the rest coming from the wholesalers. This meant that direct delivery is a more popular concept in the U.S.Keeping into consideration the current strategy of the 7dream concept, it is more likely to be successful in Japan than in the United States. However, if the strategy is molded according to the U.S. market, it can become a greater success.Question 67-Eleven is attempting to duplicate the supply chain structure that has succeeded in Japan in the United States with the introduction of CDCs. What are the pros and cons of this improvement? Keep in mind that stores are also replenished by wholesalers and DSD by manufacturers. later 7 Eleven acquired Southland Corporation they assay to improve their operations in America. The main improvement was an introduction of a new component in the supply chain completely novel to the US market. This component, the feature Distributio n Centers (CDCs), was however used in Japan at that time. Initially the stores in US used the Direct Store Delivery (DSD) in which stores were replenished by manufacturers account for half of the goods volume and the rest half was done by whole sellers. CDC delivered destructible products like bread, sandwiches and the rest of the bakery products. Pros employ CDC all perishable -food items would be delivered by a single distributor which would increase overall efficiency. Having fresh-food items at 7-Eleven convenience stores helped in users getting variety of fresh food from convenient locations. Uncertainty of delivery times was minimized by systematic delivery system. The inventory costs were low as fresh food items cannot be inventoried. With daily replenishment of fresh-food items, the stock would be fresh and it reduced consumer concerns of stale items to a large-mouthed extent. Centralization gave a greater control to the management and more processes were now to a lower p lace the supervision of the company hence improving efficiency.ConsThere could have been a divergence in quality delivered through CDC and DSD. DSD was a tested system so company might be unwilling to breakout to the new system as there is always a reluctance to change. In US stores fresh products may not sell very well.Training would be required for all the supply chain members as the new system tends to be more time sensitive. Manufacturers might not be willing to go with the idea of CDCs as they might mislay on their relative dollar revenues and with the detriment in revenues they might also reduce control. As the new system would be very time specific, the supply chain might not be very responsive and if updates are required the company might lose on its sales.Question 7The United States has food service distributors that also replenish convenience stores. What are the pros and cons to having a distributor replenish convenience stores versus a company like 7-Eleven managing its own distribution function?With the outsourcing decision in mind an organic law always tries to outsource activities that lie beyond their core competencies and their singular resources are wasted in playing tasks that they are not specialized at. With outsourcing the organization tries to focus on activities that they can do best. The advantage is that managing the distribution is the sole business of the distributor and with his specialized expertise it might be more cost pithive. However outsourcing does have its repercussions as well. The control over the quality of items and the replenishment time might not be as effective as doing the distribution yourself.With the outsourcing of distribution the discourse gap can affect the replenishment distribution. However taking the advancements in confabulation and technology this statement may be rendered void. Convenience stores are successfully communicating with their distributors and make uninterrupted storage of informat ion and information transmission from 3PL WMS to internal systems for real-time visibility of stock in hand and customer service. Moreover outsourcing decisions affect both the efficiency and responsiveness of the supply chain. A retail store can deliver the goods improved efficiency by having a distributor replenish its stock, but he does not put his heart and effect they can have on their long term aims.