SUPPLY CHAIN MANAGMENT

Supply Chain Management



Supply Chain Management: Seven-Eleven's strategy in Japan

Introduction

SCM tools are based on information on production capacity found in the information system of the company to place orders automatically. Therefore, SCM tools have a strong correlation with the overall management of the company (ERP, Enterprise Resource Planning in English) within the same company.

The supply chain strategy of Seven-Eleven Japan is described as an attempt to equate micro scale supply and demand using rapid replenishment. The distribution system of Seven - Eleven was closely linked to the supply chain across product categories. The major objective was to track sales and offer carefully time cycles short refueling. Since March 1987, deliveries to stores offered three times a day for all dishes rice (which constituted the majority of fast food items that are sold in stores) (Sharon, 2005, pp 12-34).

Strategy of Seven-Eleven Japan

Market Dominance was the main objective of 7-11. This resulted in efficiency in distribution and systems, enhanced brand awareness and increased entry barriers for new entrants (Sunil, 2002, pp. 60-66).

Responsiveness (responsiveness)

Seven Eleven Japan Co is an international franchise and a local supermarket chain. They have a wide assortment of products, focusing on beverages, food, waterproof products, bazaar, etc. A change in the amplitude of time and variety of products. Generally, they are located in city centers in places where there is movement 24 hours a day, such as airports, transportation terminals, petrol pumps, etc.

Decided to provide responsiveness by rapid replenishment, the inventory level was the fastest method to provide immediate response to customer satisfaction. Increasing the level of inventory of products, with increasing responsiveness, the convenience store chain is exposed to greater uncertainty (Oliver, 1982, pp. 63-75).

Reliability

This company have high quality control, since it has 200 inspectors who keep pushing audits through a computerized support, which monitors, collects and analyzes information. From the beginning the company Seven Eleven seek to simplify their operations by applying advanced information technology.

The question that this project covers relates to how the company has done in its choice of facility, transportation and information infrastructure and inventory management, in developing capabilities which led to support the supply chain strategy in Japan.

The company has actually developed an extensive franchise network expansion by the usage of Marketing Dominance Strategy for ensuring the efficiency and effectiveness. The company gave a very high density market pressure and it also allowed it for operating an effective distribution system. The Seven-Eleven has opened up most of its stores in that area and location where there is an efficient system of distribution, so that they can operate easily (Sunil, 2002, pp. 60-66). By opening their stores in such areas, there are six advantages highlighted by Market-dominance strategy.

Increased system efficiency

Boosted distribution efficiency

Improved advertising effectiveness

Improved brand awareness

Prevented competitors' entrance into the dominant area

Enhanced efficiency of franchise support services

A convenience store chain seeks to provide responsive and provide customers what they need, when they need it, where they need ...