7-Eleven Case Study

1173 WordsFeb 25, 20135 Pages
Case Study #1 1. The name itself, convenience store, defines the expectation of customers frequenting these establishments. Therefore, the driving force behind efficient convenience store supply chains must be improved customer convenience. The more responsive the supply chain is to the needs and demands of its customers, the better the customer experience. Two different ways that a convenience store supply chain can be responsive are product/service diversity and reduced inventory. As proven by Seven-Eleven Japan’s success, offering a variety of products and services can help to increase responsiveness. Banking services, automobile maintenance, and popular grocery items are all common offerings in convenience stores; each part of the overall strategy to satisfy the complete needs of transient consumers. One of the risks, however, of offering diverse services is the increased need to outsource some of these services. The tradeoff for the convenience of outsourcing is the lack of control and need for collaboration. Reducing the inventory to include only those products that are actually consumed is another way to increase responsiveness. Shelf space is at a premium, in these small stores, therefore, managers should continue to rotate their stock to ensure that underperforming SKU’s are discontinued and new products are stocked in their place. One of the greatest risks of utilizing this strategy is the potential to alienate key members of your client base, because they cannot find their particular product in your store. Many products are bought in tandem, such as milk and cereal. The elimination of one could cause the consumer to go elsewhere to purchase both. 2. Utilizing information software, convenience stores can analyze sales history to anticipate the demand and schedule deliveries throughout the day to replenish their inventory

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