Hello everyone.I am Madhumitha.M doing my second year MBA in Amrita School of Business.Welcome to my blog on topic "The success story of 7-ELEVEN".From this blog we know not only about information on industry but we also know about the supply chain management of the company.Hope you find interesting.
1.Network of the store
The success of the Seven-Eleven supermarket network is largely attributed to the nature and operation of its supply chain, and its commercial aim is to provide consumers with the goods they want when they need them. From a strategic point of view, the company's key goals are to seek a micro-balance between supply and demand across the geographical, seasonal and regular schedule. The location of the shop plays an irreplaceable role. The dominant tactic of SE is to open multiple outlets in a concentrated manner, thereby practically conquering the market it reaches. The organisation employs distinctive aspects of this approach in four major ways: economic distribution, brand recognition, competition entry avoidance, and increased quality in directing franchised stores.
2.Inventory Policy
There is a tradeoff between shipping and stock, and cutting prices on one raises spending on the other. Seven Eleven was able to brilliantly use the transport section to keep inventory close to empty. Stores are replenished at least three times a day and the need for safety stock was removed by this limited lead period. Seven-Eleven stores were allowed by the information system to help balance supply with demand.
For instance, traditional breakfast items are stored earlier during the day, and later in the evening, typical dinner items are stored. A store was able to convert shelf space to introduce new items by identifying slow or non-moving items, thus utilising full space utilisation. When a new product is launched, within the first three weeks, the decision to begin storing it is made.
3.Point of sales
The point of sales system makes it possible to track each merchandise sold in real time. To remove dead stock, each store strictly adheres to the scheme. For product growth, knowledge obtained by the POS framework is invaluable. Since the POS gathers data about clients. The cashiers can first scan the bar code and give the customers a quote as soon as a customer orders an item, the customers go to the cashier checkout. The cashier will input the amount paid by the clients after payment. They then click buttons above the POS, which is blue for men and pink for women, depending on their estimation of age and sex. After checkout, the data is transmitted to the mainframe computer headquarters via the network . In addition, the speed of the headquarters monitoring the customer demand is vastly increased through this hardware, goods and time data. It helps predict the operations of sales and distribution.Headquarters review and upgrade information every day and send it back to the stores each morning via the network. In the goal of optimising order location, all this information is available at the graphic order terminal.
4.Distribution management
Distribution is the supply chain 's final connexion between suppliers and customers. The quality of delivery speed determines the degree of customer loyalty. All stores are given cut-off times for buying breakfast, lunch , and dinner. It is transmitted directly to the retailer as well as to the delivery centre anytime a store places an order. As soon as the supplier collects orders from all Seven-Eleven shops, the supplier begins production to fill the orders, which ensures that all suppliers base their estimate on the real consumer data as a result of the absence of the 'bullwhip' effect, we can see that all supply chain players are focused on raising the surplus of the supply chain, not just their own benefit. Orders are delivered to fulfilment centres (DCs) by truck. This way, the items arrive at the shops only as they are expected.
The implementation of combined delivery distribution has resulted in dramatically decreasing the number of delivery trucks used from 70 trucks a day to about 9 a store. Before that, it was the retailer that supplied the store with merchandise, which was very unproductive. Now, all manufacturers have to do with this new approach is to supply the goods by truck-loading trucks taking advantage of economies of scale, and from there they are shipped using less-than-truck-load to every store.
5.Strategic fit
By serving as the supply chain 's boss, Seven-Eleven was able to resolve all the challenges and create a strategic match between its competitive approach and its supply chain strategy. It manages to delegate tasks to multiple levels of the supply chain in order to ensure proper responsiveness. Its success can be attributed to the outstanding match between its practical strategies.
Thank you all!☺️
