The New Strategy by the Seven-Eleven Stores - Essay Example

The New Strategy by the Seven-Eleven Stores The seven-Eleven company after analyzing and updating their product master, through the computer, which was aimed at improving the procedure of ordering, they analyzed data in their information system .The data analyzed enabled the company to match supply and demand where the employees of the company in their stores, adjust the products mix in their shelves according to the rate of consumption. This allowed the Seven-Eleven Stores to identify the slow and non-moving products and replace with the fast moving goods.

The newly adopted strategy by the company had some risks on the nature of demand and supply. The new strategy by the company on store integrated system had some risks since the system was dependent on the network and failure of this network means that the company will not meet the demand and supply. This will paralyze the distribution and meeting the customer’s needs. The new strategy was anchored on demand, which was seasonal and was dependent on the new products thus this faced the risk of collapsing when the season was over.

In addition, the decision-making process is made within three days, which means some decisions can contribute to business collapse as some decisions needed a lot of time (Akira 2003, p.66).The Seven Eleven Company in Japan employed the use of the integrated store information system that aimed at simplifying its mode of operations. The installed information system connected each outlet, distribution stores, suppliers, and the headquarters of the company. The company in1991, developed two-way and online communication that enabled the company to link with their suppliers and customers’ .

In 2007, the Seven-Eleven introduced internet shopping that enabled the company to meet their customers online by enabling the customers to buy the products online that were not in their retail shops. This online service solved the problem of transportation while delivering goods to their clients situated in various parts in Japan. The distribution system of the company was flexible enough to change their delivery services to their clients thus meeting their demand (Akira 2003, p.67).This provided the customers with the element of convenience since they could not travel to retail shops to make purchases.

The company further concentrated on regional merchandizing thus enabling them to meet their customer preferences easily. The company in 2002, established e-commerce Company that was aimed at exploiting the already established distribution system to make the stores accessible to their clients. The inventory system of the company is managed through the installed system specifically by use of graphic order terminal technology. These stores served the purpose of drop-off and collection points to the Japanese clients.

The delivery policy of the Seven-Eleven Company is flexible thus enabling them to meet the needs of their customers adequately at the right time. The combined delivery system ensured one company truck supplied the purchased products to their clients. The company trucks were well equipped with refrigeration equipments thus making then delivery service convenient to all products. The delivery system was made during the off-peak hours where they use scanner terminals. The delivery system is based on the element of trust.

The person who is going to receive the goods does not need to be present when the store personnel scanned the delivery process thus minimizing the time spend on the delivery of goods. The delivery policy of the company was appropriate since it reduced the cost of operations and the trucks involved in delivery (Akira 2003, p.67).ReferenceAkira Ishikawa, (2003),The Success of 7-Eleven Japan: Discovering the Secrets of the World's Best-Run Convenience Chain Stores ,New York,NY: World Scientific.