The Growth of Seven-Eleven
EXECUTIVE SUMMARY Seven-Eleven had realized unique growth in the business sector as there was utilization of supply chain strategy of Seven-Eleven and certain performance drivers upon the balance nature business responsiveness and the awareness of certain risks involved. For Seven-Eleven to be successful, ECR approach will be realized that are effective for store assortments; chain replenishments and efficient promotion as well as product introduction.
Seven-Eleven have found better ways of developing their CDC as well as DSD that is through information knowledge expertise and the augmentation of their business functions to deliver frequent product services of varied items and the engagement assurance given to the customers.
The advantage of successful chain is within the improved economies of scale as Seven-Eleven effectively tripling buying power and gaining access to new products as the US and Japanese stores teamed to lower costs on certain premium wines for instance.
The DSD can be appropriate when there is ample and fair amount of logistics determining the ideal physical distribution of goods at Seven-Eleven as there can be affected by the store’s distribution center as well as facility location decisions. The distribution systems of Seven-Eleven were re-engineered and the Combined Distribution Centers have been introduced by the company to better manage the flow of products into the stores.
There has been useful advantage of Seven-Eleven upon CDC and DSD as the centers allow smoothing of distribution operation to the stores and the provision of better quality and better information on supply and deliveries is available and there was control of the supply chain as achieved. The presence of technology like the adaptation of the POS system can possibly move ahead and do aid the store employment and management situation by freeing up staff time.