Free «Management Issues» Essay

Logistics, SCM at 7-Eleven. Talk about some data, facts of SEJ.

SEJ is highly effective in terms of its logistics system which contributes towards an efficient use of space in terms of product replenishments. Moreover, SCM allows responding to public’s demands rather quickly while establishing a profound cooperation between key partners.

What are the advantages of data-rich supply chain management?

The main advantages of data-rich SCM lie within the ability of sharing information between partners which leads to their tight integration. Moreover, data about consumers’ interests or needs is carefully gathered and turned into information for future effective company’s use.

Since information systems are easily mimicked, how does 7-Eleven Japan differentiate itself from competitors?

The essential differences mainly concern the ability of SEJ to focus on the trends in market demands, regardless if they are timely or thorough, and adjust the system of replenishments accordingly.

How to maintain 7-Eleven as the Market Leader in Convenience Retailing?

In order to guarantee its leading position, it is essential to constantly change while adapting new technologies. Furthermore, the satisfaction of the customers is of paramount significance; therefore, the products must be highly qualitative and responding towards contemporary trends within the society. It is crucial to foresee the possible demand in advance as it considerably elevates company’s reputation.  

Is 7-Eleven Japan successful in its pursuit to be a company “that responds to change”? Why or why not?

SEJ is exceptionally successful in terms of “responding to change” as it implements new technologies, such as new client applications, satellite and Internet communications, in order to track the product in the supply-chain level system. It does not just observe but analyze the interests of customers with the purpose of adjusting respective innovations in terms of efficiency. 

What are the ways in which a convenience store can be responsive and what are the risks associated?

A convenience store can analyze the market situation and, according to its findings, organize replenishments of products that represent customer’s demand. However, it is not always possible to predict popularity of certain products which may result in significant losses.  

Is 7-Eleven trying to micromatch supply and demand with rapid replenishments? What are the risks?

7-Eleven stands out for its ability to react on customers’ demands and adjust its strategy accordingly. Nevertheless, the risks involve high costs, shifting demands or even excessive replenishments.

What has 7-Eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to support its SCM strategy?

7-Eleven focuses on opening the stores within the areas with existing cluster of stores supported by one distribution center (DC) which contributes towards lowering of the inventory handling cost. Moreover, each store uses a specific stock keeping unit while adjusting to the local customers’ demand. 7-Eleven avoids using a direct-store delivery scheme. All the supplies are delivered to DC which distributes the products further. The information infrastructure is highly developed and leads to the effective response by matching supplies with customers’ demand.

Why 7-Eleven does not follow a direct store delivery?

7-Eleven avoids following a direct-store delivery, since it involves massive expenditure on transportation. Instead, all the products are delivered to a specific distribution center, where they are directed further in accordance with stores’ needs.

Why does it use distribution centers and what are the benefits of this policy?

Distribution centers facilitate the overall process of product supplying. The benefits of such policy lie within reduced cost in terms of transportation, along with a better responsiveness to customers’ specific demands in certain location. Moreover, the location of stores within a certain cluster contributes towards the efficiency of such policy.

When is direct store delivery better?

Direct store delivery can be implemented effectively when store are situated rather distantly from each other. In this context, the transportation costs in a scheme of the DC use would be exaggerated to a considerable degree.

Will it be more successful in the US or Japan, why?

Due to specific location of stores in both countries, the methods of organizing the supply chain management should vary accordingly. In Japan, distribution centers are more effective because of the significant density of the stores within a specific area. Meanwhile, direct store delivery works much better for the US whereas can result in unavailing expenditures for SEJ.

Why 7-Eleven (southland) was filling the bankruptcy while 7-Eleven (Japan) made over 40% profit?

The reason for this lies within a focused orientation on customers’ needs, which is based on the implementation of a highly responsive information system.

What is competitive advance when 7-Eleven applying information system?

The main competitive advance is its responsiveness in terms of customer’s demands within a specific location. Thus, timely and appropriate replenishments attract more customers.

How to meet the customer’s needs fast?

In order to meet the customer’s need fast, it is essential to analyze the market on a constant basis with the purpose of foreseeing possible trends and reacting to them in advance. In addition, it is crucial to take into consideration the most popular items and replenish them in a timely manner.

What are the ways in which a convenience store can be responsive and what are the risks associated?

In order to be responsive, a convenience store should keep track of the products that are being bought in the first place. However, there is a risk of oversupply of such products, especially in case the trends within the market change.  

Is 7-Eleven trying to micromatch supply and demand with rapid replenishments? What are the risks?

Question 7.

What has 7-Eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to support its SCM strategy?

Question 8.

Why 7-Eleven does not follow Direct-Store delivery? Why does it use Distribution centers and what are benefits of this policy?

Question 9 & 10.

Explain history of 7-Eleven.

The success of 7-Eleven can be explained in terms of its highly effective management. The implemented strategy involves careful planning, thorough analysis and quick responsiveness due to the developed information system as well as distribution system which adjusts to the peculiarities of a given location accordingly.