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GROUP
1
D
E
R
A
P
M
O
C
Franchise System
Responsibilities:- Develop supply & merchandise
- Provide ordering service
- Pay for systems operations
Seven Eleven
- Supply accounting service
Headquarters
- Provide advertising
- Install and remodel facilities
- Pay 80% utility cost
Company-owned
Store
**Hire professional
manager in-order to
extend profits
45% Profits
55% profits
Third-party
owned franchise
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
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
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