GROUP 1

236378 PUTERI NUR LIYANA BT MEGAT ZULKEFLI230685 CHEN MIN SHENG232703 DEWI SARTIKA JAMALUDIN236266 CHIN KIEW YEN 236321 KAMELESHWERI236414 MUHD DANIAL JAMALUDIN240836 MUHAMAD FIRDAUS MOHMMAD

Seven Eleven Japan CO.• Founded by Masatoshi Ito• Established by Ito Yokado• 1972 = approach Southland Corporation• 1973 = Southland agreed a licensing agreement• 1974 = First 7-11 Japan in Koto-ku, Tokyo• 1990 = Southland enter into bankruptcy protection • 1991 = IYG Holding acquire 70% of Southland common

stock worth $430 million• 2005 = Seven & i Holding Co. Ltd established through

stock transfer combine 7-11 Japan, Ito Yokado & Denny’s Japan

Convenient store & Seven Eleven in Japan

• 7-11 dominate 90% of Japan convenience stores• Sales per day = 647,000yen

• Others 10% convenient stores• Sales per day = 484,000yen

COMPARED

Franchise System

Company-owned Store

Third-party owned franchise

Seven ElevenHeadquarters

45% Profits

55% profits

Responsibilities:-- Develop supply & merchandise- Provide ordering service - Pay for systems operations- Supply accounting service- Provide advertising- Install and remodel facilities- Pay 80% utility cost

Responsibility:--Operate & Manage Store- Hire & Pay Staff- Order Supplies- Maintain store appearance- Provide customer service

**Hire professional manager in-order to extend profits

Store Information & content• Offer product according to local demand• Emphasize local preference• Food Item: i) Chilled-temperature items

ii) Warm-temperature itemsiii) Frozen Itemsiv) Room-temperature items

• Other product : soft drinks, Nutrition drinks Alcoholics Beverage Music CD, Magazines Game software

Private brand products

Store Service• 1. Payment of Bills• 2. Accept installments on behalf of credit companies• 3. Payment for internet shopping• 4. ATM at most stores• 5. Meal delivery service for aging population of Japan• 6. Ticket sales , Photocopying• 7. Pick up location for parcel delivery• 8. 7 dream e-commerce• 9. Home meal delivery especially for women• 10. Nanaco (electronic money)

Distribution System

Distribution system

Facility• 2 levels;-i) DCs- Less in number- Held no inventory- Served stores in its cluster- Increase efficiency as opposed to responsivenessii) Stores- More in number- Kept inventory on shelf- Located in abundance and dominated the market- Were more responsive than efficient

Inventoryi) DCs- no inventory- High efficient- Poor responsiveness

ii) Stores- Kept daily stocks- Low inventory- Efficient but not responsiveness

Transportationi) Vendor to DC (Vendor delivery)ii) DC to stores (7-11 delivery)

Transportation Network design- Each truck would be stocked at DC- One truck would deliver supplies to more than one

stores

Mode of Transportation- Road (van& truck were use) High Frequency Provide high responsiveness opposed to efficiency

Integrated Store Information System

i. Graphic Order TerminalIi. Scanner Terminal Iii. Store computer- linked to 7-11 network- Tracked inventory levels, place order maintain store

equipment.Iv. POS register- data/details will be stored after customer purchase and then

transmit to HQ

Data relayed to Suppliers, DC and Headquarters automatically.

Increase both efficiency & responsiveness.

-GOT-POS-ST

Sourcing Outsourced transportation- Transfleet Ltd. Set up by Mitsui and Co.

To ensured rapid, reliable delivery.

DC merely transferred inventory carried from supplier truck to Seven Eleven distribution truck.

Pricing Offer reasonable priced product Market dominance allowed ease of

access to customer Above factors led to stable demand

US MARKET Existing system- Store replenishment through Direct Store Delivery

from Manufacturers- Remaining products delivered by Wholesalers

Introducing Combined Distribution Centre concept- 23 CDC across North America- Supported 80% of store Network

Introducing Fresh Food like Japan