Devi Indah Sari 3203016097 Ester Putri Gita P 3203016242 Anastasia Apryana 3203016244 Clara Noviana 3203016280 Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing Seven-Eleven in the United States. Both Ito-Yokado and Seven-Eleven Japan were founded by Mr. Masatoshi Ito. In May 1974 the first Seven-Eleven convenience store opened in Tokyo. This new concept was an immediate hit in Japan, and Seven-Eleven Japan experienced tremendous growth. By 1979 there were already 591 Seven- Eleven stores in Japan; by 1984 there were 2,001. SCM : In commerce, supply chain management (SCM), the management of the flow of goods and services,involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. Distribution systems Distribution systems can be defined as the sequential flow of procedures, systems, and activities which are designed and linked to facilitate and monitor the movement of goods and services from the source to the consumer. Essentially, distribution is about making products and services available to the end users when and where they need them. Analysis 1. A convenience store chain can improve responsiveness to this uncertainty using one of the following strategies to get some different ways that a convenience store supply chain can be responsive : • Increasing the number of locations • Faster replenishment of demands • Improving coordination between various level of demand availbility. 2.This may cause following type of risk for the company: • In case of high demand, it may happen that requied labor work force is not availabe during that time • Company may face risk from wrong aproximation or prediction of demand • In case of any hindrance, in any part or process of the suplly chain, whole chain will get distrubed • Rapid replenishment may cause company to bear unnecessary cost in many case like procurment of finance, material or man power 3. Location Seven-Eleven Japan based its fundamental network expansion policy on a market-dominance strategy. Entry into any new market was built around a cluster of 50 to 60 stores supported by a distribution center. Such clustering gave Seven-Eleven Japan a high density market presence and allowed it to operate an efficient distribution system. Transportation The key to store delivery was what Seven-Eleven called the combined delivery system. At the distribution center, delivery of like products from different suppliers (for example milk and sandwiches) was directed into a single temperature-controlled truck Information system On-line network linking the head-office, stores, and vendors POS (Point of Sales) comprising POS cash registers and terminal control equipment Joined with NEC, personal computers using color graphics that were installed at each store and linked to the POS cash registers Integrated Services Digital Network (ISDN) that Linkied more than 5,000 stores, it became one of the world’s largest ISDN systems. 4.The benefit of this regulation is : The distribution center assists the checking and inspection process of orders sent by the store manager. The distribution center also helps move supplies from supplier trucks to seven eleven trucks. This helps reduce transportation costs to distribute each product to a seven-eleven store. 5. 7dream.com is an e-commerce company, that established in February 2000. Its dream is to exploit the existing distribution system and the fact that stores were easily accessed by Japanese people. This company also served as drop-off and collection points for Japanese customers. In our opinion, it is more likely to be more successful in Japan because A survey by eSBook a joint venture between Softbank, Seven-Eleven Japan, Yahoo!Japan, and Tohan, a publisher, discovered that 92 percent of its customers preferred to pick up their online purchases at the local convenience store, rather than have them delivered to their homes. 6. Pros : Give the opportunities because it has proven to be real success in Japan. . And to adjust the system can be done hybrid, which is done in areas in America that have a greater chance of success. Cons : - Differences in organizational culture in both regions and most likely supply chain will not run normally. - There are companies that dominate also. This is what affects that level of supply chain success depends on many factors. 7. PROS & CONS PROS CONS The freshness of the item that Merchants may have problems will sell always awake because due to different distribution CDCs delivered fresh items centers. such as sandwiches, bakery Manufacturers prefer direct products, bread, produce, and delivery because they are other perishables once a day. more controlled. Can represented a significant Long distance between stores improvement in North for shipping. American performance because a good of inventory turnover. Operational efficiency because the goods are distoked at night and it is done daily. Conslusion….. With the supply chain strategy that Seven Eleven had implemented, Seven Eleven had realized unique growth in the business.The advantage of successful and improved implementation of chain Seven-Eleven effectively tripled the buying power and also accessed new products.