SevenEleven does not allow direct store delivery in Japan bu

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?

Solution

-Seven-Eleven does not allow direct store delivery in japan but has all the products flow through its distribution center as it has a large number of stores in different areas and the expense for transportation will be highly increased when direct store delivery methord is used ,in addition when the stores at different areas will get the deliveries from different providers and maximum of those won\'t be fully loaded and this can create a loss for the company as the loss margin will be increased at a drastic rate .So rather than doina direct delivery which can be a huge loss the providers give their orders to the distribution centers what they do is they seperate the same kind of products and then deliver it to the respective shops.

-The benifit that seven eleven gets from this policy is that the shops will contact directly to the distribution ceters to place any kind of order for the required products rather than contacting various providers .This is a economic way of placing orders and its also very simple of a process.

-The direct store delivery will only be appropiate if the shop orders its product in a bulky amount in which case this kind of delivery is useful and this type of delivery is only used in large shops .