Seven Eleven Japan

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Seven Eleven Japan
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Seven Eleven - Number of Stores
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Seven Eleven - Net Sales
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Seven Eleven - Pre tax Profit
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Seven Eleven - Inventory (days)
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Japanese Images of Seven Eleven

• Convenient
• Cheerful and lively stores
• Many ready made dinner items I buy
• Famous for its great boxed lunch and dinner
• On weekends, when I was single, I went to buy
  lunch and dinner

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Key Product Categories

• Processed Foods 50
• Fresh Foods 30
• Non Foods 20

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Store Description

• Average size 100 sq. m. 1,000 sq. ft. (about
  1/3 of typical US store)
• Average sales 700,000 Yen (about twice average
  US store)
• SKUs offered in store Over 3,000 (change by
  time of day, day of week, season)
• Virtually no storage space

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Supply chain Objective

• Micro matching of supply and demand (by location,
  time of day, day of week, season)

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Location Strategy

• Have many outlets, at convenient locations, close
  to where customers can walk
• When they locate in a place they blanket the area
  with stores stores open in clusters with
  corresponding DCs
• 844 stores in the Tokyo region Seven Eleven has
  5,523 stores in 21 prefectures

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Information Strategy

• Quick access to up to date information (as
  contrasts with data)
• ISDN network installed in 1991 linking stores,
  headquarters, DCs and suppliers
• Store hardware
• Store computer
• POS registers linked to store computer
• Graphic Order Terminals
• Scanner terminals for receiving

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Information Analysis of POS Data

• Sales analysis of product categories over time
• SKU analysis
• Analysis of waste or disposal
• Ten day (week) sales trend by SKU
• Sales trends for new product
• Sales trend by time and day
• List of slow moving items
• Contribution of product to sections in store
  display

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Distribution Strategy

• Delivery arrives from over 200 plants
• Delivery is cross docked at DC (over 80 DCs for
  food)
• Food DCs store no inventory
• Combined delivery system frozen foods, chilled
  foods, room temperature and hot foods
• 11 truck visits per store per day (compared to 70
  in 1974)
• No supplier (not even coke!) delivers direct