7-Eleven Japan Source Chain Circumstance

1) A convenience store chain attempts to be reactive and provide customers what they want, when they require it, where they want it. Precisely what are some other ways that a convenience store source chain can be responsive? What are some hazards in each case?

To be response, a store has to choose between having large inventory or recurrent orders & frequent delivery routes.

With holding large inventory, dangers would be: risk of unsold goods; inventory costs (in conditions of money) and having costs (in terms of area).

With frequent instructions and recurrent deliveries, hazards would be large transportation costs, low effectiveness, and likelihood of opportunity expense by not being able to deliver punctually and meet up with high demand. 2) Seven-Eleven's supply chain strategy in Japan can be described as trying to micro-match source and demand using quick replenishment. What are some dangers associated with this choice?

One particular risk will be more transportation visits that may increase transfer costs and decrease efficiency. And opportunity expense risk, exactly where supply and demand will never match (for example: a bunch visit) which results in not being able to pay for wide require fluctuation. 3)

What offers Seven-Eleven done in its choice of facility site, inventory managing, transportation, and information facilities to develop capacities that support its source chain strategy in Japan?

Facility area: Location variety is based on 7-Eleven Japan's market dominance technique, which is building 50-60 retailers in substantial urban location all maintained on syndication service. Products on hand Management: Each store got choice via 5000 SKUs and carried on average 3000 SKUs which are highly dependent upon local demand.

Transportation: requests from suppliers are sent by pickup truck to the division center, then simply, at the circulation center, products are classified into 4 categories according to their having temperature: frosty foods, cooled foods, room temperature fully processed foods, and...

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