Integrated Supply Chain Management

CASE STUDY
“7-Eleven Stocks
Up on Tech
Savvy”

Presented by:
LEARNING GROUP 7 OF SECTION A (PGPM 08)
 Company Profile
 Started in 1927 in TEXAS, U.S.A.
 World’s largest convenience chain store with outlets
around the world
 Leader and innovator in using technology to serve
customers
 Focuses 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
 Situation Audit
Over 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

 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
 Technology @ 7-Eleven
 ‘Tanpin Kanri’ serves competitive advantage
 Retailer Initiative aligns product assortment
with customers’ wants
 Equity in decision-making among SC
participants
 Retail 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
Mobile 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
CASE: 7-Eleven Stocks Up on Tech Savvy
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
LEARNING GROUP 7 OF SECTION A
 Question No. 1

Describe the
Information System
of
7-Eleven store

CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A

 Recording Order Corporate
inventory transmitted Network
information store in and Data
on the gadget back office Centre

Delivered
to the Distributor
store

Manufacturing
Transport
unit
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
 Strategic Partnership with NEC

Leveraging Technology

Pilot Testing

CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A

 Communication Transaction Decision
System System Analysis
• Usage of EDI and • Enables • Provide highly
Web Vendor accurate order tailored,
Terminal and inventory structured
facilitates management reports that
information flow can be used for
between 7-Eleven very specific
and various business
suppliers situations

CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A

 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
 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

Collaborate with supply chain partners

CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A

 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
  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 An EPC RFID tag
use RFID printer/encoders to label cases used by Wal-Mart
and pallets that require EPC tags for
Wal-Mart
Areas for its RFID implementation:
Shipments going to Wal-Mart divisions
Promotional displays and products going to Wal-Mart stores
Tests to see RFID's impact in improving category management
in select areas
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A
CASE: 7-Eleven Stocks Up on Tech Savvy LEARNING GROUP 7 OF SECTION A