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Homework 1: Case Summary
(Due by 18:00 on 25 Sep 2019)
This homework pertains to the case “Seven-Eleven
Japan” downloadable from the following link: https://hbsp.harvard.edu/tu/e1bc30a4
Note this case is not the same as the one on P.73 of the
textbook. Before reading this case, familiarise yourself with the following
terms: stock keeping unit (SKU), point of sale (POS), and distribution centre
(DC).
Q1. In Ch3, we will discuss six drivers – facilities, inventory, transportation, information, sourcing, and
pricing – that determine the performance of a supply chain. List relevant
practices under each driver by Seven-Eleven Japan (SEJ) described in this case
including their main purposes.
Q2. This case was written 20 years ago, while SEJ
continues to be successful to date. Compare SEJ with Seven-Eleven stores in
your own country today (if there is not, use any other convenience stores for
comparison) and identify their differences. Can SEJ’s approaches
be duplicated in your own
country? Justify your answer.
Overall, limit your answer to the above two questions to one page and submit it to Turnitin via Moodle.
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Homework 1: Case Summary- elements that influence
supply chain performance at Seven-Eleven Japan (SEJ)
Question
1
Pricing, sourcing, information, transportation,
inventory, and facilities are among the predominant elements that influence
supply chain performance at Seven-Eleven Japan (SEJ). First, SEJ locates its
convenience stores near its customers to ensure they gain better access to
products. Second, the firm adopts high-volume sales and discounts to improve
its inventory administration. Third, SEJ uses a joint delivery program linked
to its entire supply chain, connecting supplier distribution centers (DC) to
consumers. Also, SEJ’s replenished information systems enhance its supply chain
efficiency easing management of its stock-keeping units (SKUs), point of sale
(POS), and product development. Moreover, the enterprise uses a focus strategy that
lets its management teams outsource production functions. Finally, SEJ’s promotional
pricing ensure that the company is responsive to market changes to satisfy
customer demand.
Question
2
There are various similarities and differences between
supply chain model of both SEJ and China Seven Eleven, for example, both
entities utilize structured logistics network coordination. Therefore, this is
evident in information sharing processes between suppliers’ DC and convenience
stores through POS desk. Also, there are no incentive challenges amongst the
enterprises and their suppliers, since they possess aligned objectives to
augment supply chain surplus through dividing and sharing roles between each
other. However, there are significant dissimilarities in composition of stores
and arrangement of products. For example, in China, the company has adapted to
demands of the local market, leading to the provision of fruit packs and eat-in
counters. For that reason, unlike in Japan where SEJ offers primarily organic
products, in China, the firm provides customers with quick stand-up sections
since they overwhelmingly prefer perishable goods, such as, fast foods and
refreshments. Nonetheless, SEJ models can be duplicated in China since people
are gradually growing more health-conscious, preferring organic, and
traditionally-prepared foods to strengthen quality of life.
