What has SevenEleven done in its choice of facility location

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?

Solution

We know that 7 Eleven is a American-Japanese international chain of convenience store. Right now 7 Eleven has more than 56000 stores in more than 18 countries. From the background of 7 Eleven we can observe that, it is a giant chain of convenience store and operated my large workforce. We know that to become successful, any convenience store must need to choose a location which is most suitable for it. For example if we open a big store with heavy investment at the location where the population is very low and not easy to reach at the store location then how can the store become successful? So there is a big role of location for any convenience store. 7 Eleven gives first preference to their store location. They choose the location where the population is good, people reach at the location easily and transpiration services are available. They also study demographic conditions of that particular area. So 7 Eleven keep all the above points in their mind before choose any facility location.

Japan is a developed country and known for the advanced and busy life of their citizens. So if any organization wants to be successful in Japan, they must make themselves advanced and fast to survive in Japan’s market. 7 Eleven developed business strategy according to Japan and also performing better. Here we will discuss about the business strategies of 7 Eleven in Japan.

To run any convenience store, we must have a good inventory system so that we can provide products to the customer timely. For that, we have to monitor our inventory system regularly. 7 Eleven use real time inventory management software so that they can track the real time condition of inventory in their stores. This software also helps to keep their store shelves always full.

We know that if we want to run a convenience store then we must have the good transportation system so that we can provide products to the customers on time otherwise we may lost our customers. Some product needs to supply daily like milk and bread because customer will not purchase stale milk or bread. So we need better transportation system for that purpose. 7 Eleven did partnership with Exel transportation which is renowned for timely delivery. They uses temperature trucks to deliver fresh foods and work 24 hours. Mostly transportation trucks travel in night so that they deliver the fresh products in early morning and they also have the transportation management system so that they can monitor the position of transportation trucks to assure timely delivery.

As they used real time inventory management system to track the real time inventory in stores, similarly they use real time information system go get the real time information. They always track the needs of the customers and feed that information in their data base system. They the data base system is real time, so the information automatically reached to each and every employee of the 7 Eleven management system. This type of information system keeps them up to date and always makes them aware about the requirement of the customers. This kind of information system helps them to fulfill the needs of the customers and also helps to make a brand image and trust of the customers on 7 Eleven brand. So the 7 Eleven has a very strong information infrastructure system in Japan.