236378 PUTERI NUR LIYANA BT MEGAT ZULKEFLI

230685 CHEN MIN SHENG

232703 DEWI SARTIKA JAMALUDIN
236266 CHIN KIEW YEN GROUP
236321 KAMELESHWERI 1
236414 MUHD DANIAL JAMALUDIN
240836 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
 Franchise System
Responsibilities:-
- Develop supply & merchandise
- Provide ordering service
- Pay for systems operations
- Supply accounting service Seven Eleven
- Provide advertising Headquarters
45% Profits
- Install and remodel facilities
- Pay 80% utility cost 55% profits

Company-owned Third-party
Store owned franchise
Responsibility:-
-Operate & Manage Store
- Hire & Pay Staff
**Hire professional
- Order Supplies
manager in-order to
- Maintain store appearance
extend profits
- Provide customer service
 Store Information & content
• Offer product according to local demand
• Emphasize local preference
• Food Item: i) Chilled-temperature items
ii) Warm-temperature items
iii) Frozen Items
iv) 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 responsiveness
ii) Stores
- More in number
- Kept inventory on shelf
- Located in abundance and dominated the market
- Were more responsive than efficient
 Inventory
i) DCs
- no inventory
- High efficient
- Poor responsiveness

ii) Stores
- Kept daily stocks
- Low inventory
- Efficient but not responsiveness
 Transportation
i) 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 Terminal
Ii. Scanner Terminal
Iii. Store computer
- linked to 7-11 network -GOT
-POS
- Tracked inventory levels,-ST 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.
 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