Supply Chain Analysis

Presented By
Dabasish Das(19312003)
 Introduction of 7-Eleven

7-Eleven, Inc., is the world's largest operator, franchisor and licensor of convenience stores.

Founder : Joe C. Thompson

Current CEO: Joseph DE Pinto

 It has more than 43,500 stores

 It has more than 45,000 employees
 It’s Revenue: 17,000 billion US dollar
 It's Net income: 2,000 billion US dollar
Product & Services
Product & Services
Product & Services
Strategies & Tactics

 7-Eleven learn from the highly successful Japanese unit, whose keiretsu model of tight
partnerships with suppliers was unique within.
 By relying on an extensive and carefully managed web of suppliers to carry out many day-to-day
functions, the Japanese stores were able to

01. Reduce their costs and

02. Enhance the quality of their operations
03. Refuse rapid growth
04. Strong Profits.
 Evaluated strategic functions such as product distribution, advertising, & procurement, identify
outside partners with greater expertise & scale
Strategies & Tactics
 7-Eleven needed to cut its operating costs substantially, expand the range of
its products and services, increase the freshness of food items.

 7-Eleven had always been vertically integrated, controlling most of the

activities in its value chain

 Strategically vital set of capabilities—in-store merchandising, pricing, ordering,

and Customer data analysis

 Reduced its capital assets & overhead while streamlining its organization.
Strategies & Tactics
Launched a business review aimed at tightening operations,
rebuilding competitive advantage, and perhaps divesting a new
noncore businesses.

The core of the business, was merchandising skill— the pricing,

positioning, and promotion of gasoline, ready-to eat food, and
sundries for consumers driving cars.

Company operated its own distribution network, delivered its own

gasoline, made its own candy and ice. It even owned the cows that
produced the milk it sold.

Managers were required to do lots of things other than merchandising

— store maintenance, credit card processing, payroll, and IT systems
management.

They realize that the company could be best-in-class in every one of

those functions
Sources of Supply