Also when women want to ay cosmetics and Jewelries at there, they can make women’s corner. Risks A: The risk for “what they need it” is that product can be bad. For example, when people want to get many Make-geol.-RI in convenience store temporary, store has to prepare many Make-geol.-RI. However, if people do not buy Make-geol.-RI anymore like before, it going to be sour. In this case, store has to dump it. Because fresh Make-geol.- Uri’s expired date is very short. The risk for “when they need it” is that store has to spend extra labor cost. Let’s assume that someone operate convenience store at countryside 24 hours.
If there were few customers between 12 and 6 am, the owner has to spend more labor cost than earnings. The risk for “where they need it” is that store could make a loss. If someone runs convenience store at small Island, they can’t get profit. Because if there are small population in there, customer can be small. In this reason, they can’t get profit. The risk for “who need it” is that store has to worry about specialized store. If store sell toy at store, it could be more expensive than specialized store. When there is a cheaper store locally, parents will go to there because they are cheaper.
Question 2 Seven Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice? When big super markets launch to the same business area, price will be cheaper than seven eleven. Even though, the numbers of big super markets are less, they can provide cheaper price. Also, specialized company will be one of the risks. For example, when specialized company sells only one product, they can make better quality and cheaper product. Question 3.
What has seven eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan? Facility location When seven-eleven opened new stores, they opened it with existing clusters of stores. For example, the Chichi prefecture, where Seven-eleven began opening stores in 2002, saw a large increase in 2004, with 108 new store openings. Inventory management To use inventory management, seven-eleven used integrated store information yester. Especially, through scanner terminal and store computer, they can check inventory easily.
Transportation Seven-eleven’s major objective was to carefully track sales of items and offer short replenishment cycle times. All of sores used a graphic order terminal to place an order. So they can make an order in cut-off times. When a store placed an order, it was immediately transmitted to the supplier as well as the distribution center. Information infrastructure Seven-eleven has integrated store information system. They install total information yester in every outlet and linked to head quarters, suppliers and the seven-eleven distribution centers.
Question 4. Seven-Eleven does not allow direct store delivery in Japan but has all products flow through its distribution center. What benefit does Seven-Eleven derive from this policy? When is direct store delivery more appropriate? They can make delivery time very shortly to all of stores. This distribution system was flexible enough to alter delivery schedules on customer demand. When the store managers use a graphic order terminal, it was immediately transmitted to the applier and distribution center. So they can make all of orders more past and easily.
After that they delivery orders what each store needs by trucks. It called the combined delivery system. I think, direct store delivery system can make quicker delivery, when there is a small order. If customer orders one or two simple stocks, store can provide it from local center. Store does not need to wait until head office sent it. Question 5. What do you think about the 7 dream concept for Seven-Eleven Japan? From a supply chain perspective, is it likely to be more successful in Japan or the United States? Why? I think, the 7 dream concept is good method for seven eleven Japan.
Because their stores were enough to cover all of Japan. All of Japanese can rich to 7 eleven store anywhere also people want to pick up their online purchases at the local convenience store. It can be more successful in Japan more than the United States. Because stores in the U. S wanted to use direct store delivery system. Also, according to our chart, number of stores in the U. S were not enough to cover whole the U. S area. The U. S has more population than Japan, but stores were almost half percentage of Japan. Question 6.
Seven-Eleven is attempting to duplicate the supply chain structure that has succeeded in Japan in the United States with the introduction of CDC. What are the pros and cons of this approach? Keep in mind that stores are also replenished by wholesalers and ADDS by manufacturers. As a positive aspect, this supply chain structure was successful in the U. S. They could provide fresh products compare with other companies. It makes seven eleven bigger. Question 7. The 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 Seven-Eleven managing its own distribution function? When food service distributors replenish convenience stores supply foods, they can distribute more easily. Because they can focus on their foods and they have more distributors who can supply for them. I think, weak point is that price will be more expensive than seven eleven. Because company like a seven eleven, they have their own distribution system. So they can provide foods cheaper than the others.