7-Eleven Japan is the largest convenience store chain in Japan, with over 15,000 stores. It was founded in the 1970s and has grown significantly since then. 7-Eleven Japan uses competitive strategies like clustering stores to increase efficiency, maintaining high product availability at reasonable prices, and collecting detailed sales data to share with suppliers. Its information systems allow for real-time sharing of data between stores, distribution centers, and headquarters to quickly replenish inventory. This just-in-time distribution system is key to 7-Eleven Japan's success.

1. 7-ELEVEN JAPAN
CO.
PRESENTED BY: S/LT AAMIR,
S/LT ALI, S/LT ARSALAN,
S/LT KASHIF
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2. OUTLINE
• Mission
• Introduction
• History & Profile
• Competitive strategies
• Store information and contents
• Inventory
• Information system
• Distribution system
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3. MISSION OF 7-ELEVEN JAPAN
Our purpose and mission is to make life a little easier for our
customers by being where they need us, whenever they need us.
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4. Introduction
• 7-Eleven is part of an international chain of convenience stores.
• 7-Eleven is the world's largest operator, franchisor, and licensor of convenience
stores with more than 50,000 outlets.
• 7-Eleven branded stores under parent company Seven & I Holdings Co. are
located in 16 countries with its largest markets being Japan (15,000), the United
States (8,200), Thailand (6,800), Canada, the Philippines, Hong Kong, Taiwan,
and Malaysia.
• 7-Eleven Japan runs all 7-Eleven franchises worldwide and is headquartered in
Tokyo, Japan.
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5. HISTORY AND PROFILE
• Founded by Masatoshi Ito post 2nd World War.
• By 1960, the single store had grown into a $3 million company.
• In 1961, realized that superstores were the wave of the future.
• In 1972, approached Southland Corporation .
• In 1973, Southland agreed to a licensing agreement.
• In 1974, first 7-11 convenience store opened in Tokyo.
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6. • The company was first listed on the Tokyo Stock Exchange in October 1979.
• In 1990, Southland Corporation entered into bankruptcy protection.
• In 1991, IYG holding acquired 70% of Southland’s common stock.
• Between 1985 and 1994, the number of stores increased from 2,299 to 5,523;
sales increased from 386 billion Yen to 1,282 billion Yen; Net income increased
from 9 billion Yen to 46 billion Yen.
• In 1994, Seven-Eleven Japan ranked first among Japanese retailers in terms of
ordinary profit.
• Same year, customer visits to Seven-Eleven outlets totaled 1.8 billion, which
translates to every person in Japan visiting a Seven-Eleven on average 15 times a
year!
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7. • 2000February Establishment of e-commerce company, 7dream.com
• 2003August Total number of stores reached 10,000.
• 2005February 7-Eleven, Inc., became a subsidiary of Seven-Eleven Japan.
ATMs installed at Seven-Eleven stores reached 10,000.
• In 2012 their total sales were 3500 billion yens.
• As of June 2013 7-Eleven has 15,504 stores in Japan alone.(source
http://www.sej.co.jp/company/en/g_stores.html)
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8. Total no of stores
http://www.sej.co.jp/company/en/s.growth.html
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9. Total Sales
http://www.sej.co.jp/company/en/s.growth.html
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10. What made them so successful????
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11. Obviously Their SCM!!!!
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13. 7-Eleven Japan’s Competitive Strategies
• To provide high-availability of a variety of reasonable quality products at
reasonable price.
• Cluster of stores (50-60) in small geographical area supported by a
Distribution Centre (DC)
• Commitment to customers and friendly service. Greater familiarity with
customers .
• Outsourcing policy and ability to manage suppliers relationship.
• First mover advantage
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14. Continued
• Customer checkout process . Clerk records the customer’s gender,
(estimated) age and purchased items. These Point of Sales (POS) data are
transmitted to database at the headquarters.
• Daily use of the data
• Headquarters aggregate the data by region, products and time and pass to
suppliers and stores by next morning. Store managers deduce trend
information.
• Preventing entry by competitors.
• Combination of Own and Franchisee Stores. gross profits shares (45% SEJ;
55% store)
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15. Continued
• Area/Market Dominance Strategy and it’s advantages were:
• High Distribution Efficiency
• Brand Awareness
• System efficiency
• Franchisee Support Services
• Advertising effectiveness
• Entry barrier for competitors
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16. Store information and contents
• Store size = 150m2, 3000 items.
• Average inventory at store of 3000 Stock Keeping Units (SKU), with max
capacity of 5000 SKUs.
• Products include:
• Food Items
• Beverages
• Magazines
• Soaps, Detergents etc.
• Game, Software
• Seasonal items
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17. Store services
• In 1999, payment for Internet shopping.
• In 2001,7dream.com was launched.
• In 2009, ATMs had been installed in all stores in Japan.
• Photocopier
• Ticket Sales
• Payment of Bills
• Electricity
• Telephone
• Gas
• Insurance Premium
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18. Continued
• Accepting Installments on behalf of credit companies.
• Meal Delivery service for aging population of Japan.
• Pick up location for parcel delivery.
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19. Information System
• Graphical order terminal—manager Info. & order.
• Scanner terminal- receiving & inventory.
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20. • POS register – real-time data on sales, customer, data analyzed overnight for company,
district, and store.
• Store computer: it was linked with GOT,POS,
Scanner terminal through ISDN with DC’s &
Headquarter. which helped in deducing trend of sales and
Customers.
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21. • Data was relayed to Suppliers, Distribution Centres and the Headquarters
automatically.
• Increased both efficiency and responsiveness.
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22. Sourcing
• Outsourced transportation.
• From DC to Stores to Transfleet Ltd.
• Risk of Fuel Price Fluctuation, Fleet Maintenance and Cost of Fleet staff was
transferred.
• The company increased profits and reduced risk.
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23. 7-Eleven’s Distribution System
• The major objective was to carefully track sales of items & offer short replenishment
cycle times.
• When a store placed an order , it was immediately transmitted to the supplier as well
as to the distribution center.
• Key to store delivery was what 7-eleven called combine delivery system.
• The distribution system enabled &-eleven to reduce no of vehicles required for daily
delivery service to each store , even though delivery frequency was high.
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25. Queries ??????
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