SUPPLY CHAIN MANAGEMENT
SEVEN-ELEVEN JAPAN
CASE STUDY 1

1. A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case?
It is very important for a convenience store to be responsive, as they should be as convenient as possible, in order to fulfill their customers needs and preferences. Seven Eleven Japan is exactly fulfilling these criteria and therefore is a great example of a responsive convenient store. They have a lot of stores situated in convenient locations, they carefully track their items offering short replenishment cycles (less than 12 hours), they use highly sufficient and appropriate technologies to enhance forecasting and they have a responsive distribution and supply chain, that is vertically integrated in many of their SKUs. The main risks associated with high responsiveness are higher costs and greater uncertainty. Improving responsiveness (in general) could also include local capacity, inventory and enhancing replenishment, however this could lead to higher uncertainty and higher costs (especially for fresh and fast food), due to increasing capacity and store size to hold inventory (5000 SKUs in Seven Eleven Case).
2. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice?
Seven Eleven attempts to micro-match their supply and demand, as they are able to track each order at each store coherently, trying to forecast a demand pattern at each store which enables them to rapidly replenish their items at off peak hours, especially fresh and fast food. There are several risks linked to this strategy, as there may be