Download - 7 Eleven Case_A7
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Integrated Supply Chain Management
CASE STUDY
“7-Eleven Stocks Up on Tech
Savvy”
Presented by:
LEARNING GROUP 7 OF SECTION A (PGPM 08)
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Company ProfileStarted in 1927 in TEXAS, U.S.A.World’s largest convenience chain store with outlets
around the worldLeader and innovator in using technology to serve
customersFocuses on paying attention to the fine details of
customers’ buying preferences to decide which products are carried in the store
Communicates both with the large suppliers as well as with the small suppliers by employing different modes of technology
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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Situation AuditOver the past 10 years 7-Eleven has invested hundreds of
millions of Dollars in Technological upgrades due to which it can accurately predict even the next day’s sales of each of the 2500
products sold in its stores
7-Eleven’s stocks soared from $6 to $30 after its Japan licensee, Ito-Yokado, became the company’s major shareholder. It
flourished because of its retail approach of TANPIN KANRI/Retail Initiative, i.e. item-by-item management
Delivering new products is the key to repeat purchase
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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Situation Audit (contd.)7-Eleven uses innovative technology like MOT and MC3000 scanners, both using MS Windows CE operating system; to
reduce time and labour
Has 5300 stores in U.S with Proliant servers from HP, WLAN and software for computer based training, which work
under Windows based Retail Information System
Shares some of its data analysis with few key suppliers like Anheuser-Busch, Kraft Foods and PepsiCo in a program
called 7-Exchange
Uses RFID (Radio Frequency Identification) for contactless payment acceptance
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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‘Tanpin Kanri’ serves competitive advantageRetailer Initiative aligns product assortment
with customers’ wantsEquity in decision-making among SC
participantsRetail Information System (RIS) tracks sales of
every item in store w.r.t customers’ buying preferences
Micromarket aided by technology CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
Technology @ 7-Eleven
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Technology @ 7-ElevenMobile Operations
Terminal Wireless device from NEC
Corporation Automation of counting
inventory and ordering Leads to cutting down on
time and labor costs MOT was implemented at
7-Eleven after trials for 15 months
Radio Frequency Identification
Used to tag items for inventory tracking (Wal-Mart)
Not suitable for item-by-item management
7-Eleven uses RFID for contactless payment
RFID-chip based credit cards
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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Describe theInformation System
of7-Eleven store
Question No. 1
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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Order transmitted
store in back office
Corporate Network and Data
Centre
TransportManufacturing
unit
DistributorDelivered
to the store
Recording inventory
information on the gadget
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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Strategic Partnership with NEC
Leveraging Technology
Pilot Testing
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
Communication System
• Usage of EDI and Web Vendor Terminal facilitates information flow between 7-Eleven and various suppliers
Transaction System
• Enables accurate order and inventory management
Decision Analysis
• Provide highly tailored, structured reports that can be used for very specific business situations
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Question No. 2
Explain, in details,the achievement
of ‘4 goals’by 7-Eleven Store,
step by step
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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Collaborate with supply chain partners
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
Collect information on each product from production to delivery or purchase point, and provide complete visibility for all parties involved
Access any data in the system from a single point of contact
Analyze, plan activities, and make trade-offs based on information from the entire supply chain
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Question No. 3
Give example, with elaboration,
of any organization,who has used the driver ‘Information’ effectively
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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To run a centralized information system, Wal-Mart and its top 100 suppliers use RFID labels to all shipments
To meet this requirement, vendors also use RFID printer/encoders to label cases and pallets that require EPC tags for Wal-Mart
An EPC RFID tag used by Wal-Mart
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
Areas for its RFID implementation:
Shipments going to Wal-Mart divisions
Promotional displays and products going to Wal-Mart storesTests to see RFID's impact in improving category management in select areas
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CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
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