Logistics Strategy of Seven Eleven

This report discusses the logistics strategy of Seven Eleven, focusing on supply network design, warehousing, order management, transportation choices, key performance measures, logistics risks, and environmental sustainability implications.

Logistics Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
What is Seven Eleven’s logistics strategy? Explain in brief. [200 words]................................1
How do Seven Eleven’s supply network design, warehousing, order management and
transportation-related choices support its logistics strategy [700 words]..................................1
What are the key logistics performance measures that Seven Eleven would be using, and
which are appropriate from its strategy perspective [300 words]...............................................1
What are the key logistics risks that Seven Eleven would be facing given the strategy it
follows[300 words].....................................................................................................................1
What are the environmental sustainability related implications of Seven Eleven’s operations
given the strategy it follows. This should cover each element of operations separately; i.e.
sourcing, transportation, warehousing, order (information) management and retail operations;
environmental implication with regards to customers (buying from Seven Eleven) should also
be covered. [700 words]..............................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES ...............................................................................................................................3
.........................................................................................................................................................3

INTRODUCTION
The report revolves around logistics study of Seven Eleven, Japan. Logistics refers to
finding the most suitable way to acquire and deliver goods and services and while maintaining
the overall quality and standards of the same. Logistics strategies are an accumulation of various
dynamics which synchronises together and establish an efficient course of action of logistics of
any organisation for example the stakeholders associated with it. The organisation on which this
report revolves around is Seven Eleven. The organisation is considerably a subsidy of Ito-
Yokado. Seven Eleven is one of the most profitable retail chain of Japan with almost 6700
subsidiaries, and all of them operates as a franchise.
MAIN BODY
What is Seven Eleven’s logistics strategy? Explain in brief.
The overall logistics of Seven Eleven revolves around many dynamics. According to a
study the dynamics that synchronises together to perform this flawless chain of logistics is the
main reason behind the success of Seven Eleven in Japan. The operational efficiency of logistics
of Seven Eleven is based on their strategies which makes them keep their KPIs in check. Seven
Eleven uses active monitoring to set key performance index and use them to determine the
performance of the organisation at any given point of time and modify and mould their course of
action wherever they seem necessary (Kain and Verma 2018). Seven Eleven also focuses on
automating as many things as they can. This approach undertaken by them allows them to reduce
the time incurred in tasks, because automation is time efficient and along with it give them cost
benefits as well as this methodology enhances the overall cost efficiency when it comes to
acquisition and resale of products. One of the biggest strength that leads to efficient logistics in
Seven Eleven is their ability to plan the acquisition of goods and services in accordance to the
needs ans wants of their cust9omers which helps them in not wasting any resource as well as in
earning customer satisfaction. The accumulation of these dynamics establishes an outline for
efficient logistics of Seven Eleven making it one of the biggest retail store in Japan, with its
operations all over the globe.

How do Seven Eleven’s supply network design, warehousing, order management and
transportation-related choices support its logistics strategy.
Supply network design - Seven Eleven design their supply chain in a manner that they
have the power to negotiate which helps them in establishing a cost efficient course of action for
acquisition and retention of goods and services (Bing et al 2016). Along with it Seven Eleven
also uses efficient supply chain methodologies in order to have good deliverances to their
customers. Seven Eleven believes in quality products rather than cheap and low quality
products. Seven Eleven is well known for their reputation to cut off suppliers whose quality of
product goes down. They usually use the supply chain where they keep the number of
intermediaries as low as possible. They usually acquire the goods and services directly from the
producer itself or in case its not possible then they try and adapt their supply chain in a manner
that they receive the cost benefits when it comes to acquisition of services so tat they can provide
their customers good quality services at affordable prices and use this methodology as a tool to
earn their customer's loyalty.
Warehousing – The warehousing services for Seven Eleven works in multiple folds. The
organisation have many kinds of goods that are stored for resale purposes. Seven Eleven
believes in providing their customers good quality products and therefore they have to have
efficient warehousing services so that the overall quality of their final deliverances does not go
down. Seven Eleven also needs to have cost efficiency in these services so that the overall price
of the product does not go out of the affordability criteria of their customers. Seven Eleven have
many kinds of products, and the organisation believes in taking the benefits of economy at cost
top further maintain cost efficiency in their actions. Therefore, Seven Eleven have warehousing
services for every classification of their products such as they need to have refrigerated
warehouses for products like ice creams and yogurts, then they need to have hot warehouses for
edibles, they need to have controlled temperatures for flours and other products, the organisation
needs to make sure that there are no rodents in the warehouses and maintain and operate all of
these costs while not letting it effect the overall cost of their product and services.

Order management - This methodology revolves around maintaining efficiency in
tracking and successfully placing as well as initiating an order. This is an accumulation of several
units such as processes, people and suppliers (Ghoumrassi and Țigu 2017), which have to
function and operate together in order to enhance the overall customer experience. Seven Eleven
uses this methodology till the customer places an order to the time the order is fulfilled and this
involves all the steps in between. Seven Eleven takes this methodology to next level and
continues this process post order placement as well. Seven Eleven uses their active monitoring
practices to collect information over digital landscape in order to see any review the customer
have given about the services provided by the organisation. These reviews can influence the
decision making of other customers as well and therefore Seven Eleven uses it as if a customer
posts any negative review, the organisation uses the principle of empathy and use it to keep
themselves in their shoes in order to assure them that these type of experience will not occur
during the future interactions of the customers with the organisation. Along with it Seven Eleven
uses all the steps that is taken in between the placement of order to initiation of order and carry
them all out with efficiency in order to enhance the overall customer experience.
Transportation-related choices – These choices are influenced by uncertainty in
economies, dynamic fuel prices, enhancement in safety and security of overall product and
services. Seven Eleven have to consider all of these dynamics and make the choice in
accordance to it so that the overall prices of the product are not effected by changes in these
factors. Price determination is a tool for Seven Eleven which they uses in order to acquire and
retain their existing customers. The organisation also prioritize the safety and security of their
customers through their products and services and therefore mode of transportation matters for
them in order to ensure that their products and services are not causing harm to any of their
customers.
What are the key logistics performance measures that Seven Eleven would be using, and which
are appropriate from its strategy perspective.
Shipping Time – For any organisation the shipping time is really important when it comes
to enhancement of overall customer satisfaction. Seven Eleven makes sure that all the activities
related to shipping are done on time in order to make sure that the orde4r is delivered safely and
on time. This enhances the overall experience of the customer. Without timely shipping the the
order can not be delivered on time. If there is delay in delivery due to external factors, then the

organisation can convey the same to their customers but Seven Eleven makes sure that there is
no delay in shipping as it an internal factor and any delay in the same can effect the overall
customer experience.
Order Accuracy – This dynamic is a key logistic performance for Seven Eleven and it
makes use that their customer receive exactly what they have ordered. This helps the
organisation in making sure that their supply channel is efficient enough that there is no change
or damage in the products that their customer receive (Whitlock et al 2018). This works two
ways as well, this also includes that the orders that Seven Eleven receives from their suppliers
are exactly what they ordered. This also revolves around the fact that the products that are
ordered by the organisation itself are acquired safely and in good condition. This helps Seven
Eleven in making sure that their logistics are efficient by measuring the accuracy in their orders.
What are the key logistics risks that Seven Eleven would be facing given the strategy it follows.
The key logistic risks that Seven Eleven faces revolves around:
Delayed deliveries – One of the biggest issue that might arise due to inefficiency in
logistics may revolve around delays in the delivery time. This might arise due to any external
factor but continuity of this might effect the customer satisfaction of the organisation as the
customers wants their goods on time and delayed deliveries will become an obstacle in that.
Along with it, the organisation is well known over their reputation of availability of all the
products at all the time and delayed deliveries might hamper all of it.
Higher transportation costs - Seven Eleven have to make sure that the costs incurred in
transportation are not exceeding the limits. The organisation haver to make profits and in order to
do Seven Eleven will have to raise the overall prices of their products, and will will effect the
customer experience as they pride over their reputation of providing quality goods and services
in affordable prices and therefore Seven Eleven have to keep this risk in check in order to make
sure that it doesn't subdue the good deeds of the organisation.

What are the environmental sustainability related implications of Seven Eleven’s operations
given the strategy it follows. This should cover each element of operations separately; i.e.
sourcing, transportation, warehousing, order (information) management and retail
operations; environmental implication with regards to customers (buying from Seven
Eleven) should also be covered.
Seven Eleven have to make sure that their logistics doesn't effect the environmental
health. Seven Eleven is well known for their reputation over respecting and establishing their
course of action in accordance to the conventions of environment. The organisation have stooped
the supplies from the sources that were found to use the methodologies that were harmful for the
environment in the past (Stough 2017). Seven Eleven prioritize that their suppliers use courses
of action that not only follows under suitability conventions but they themselves takes initiatives
in order to make sure that they are working in order to improve the environmental health in the
marketplace they are working in. All the operations including sourcing, transportation,
warehousing, order management and retail operations are based in a way that they are not
harmful for the environment. Strategic sustainable policies are made for all of these actions. In
addition to that the organisation makes sure that they themselves have waste management
policies in the organisation itself and they make sure that they customers value environment as
well by promoting the message and values of environment protection.
CONCLUSION
The report revolves around logistics strategy of Seven Eleven along with their network
design, warehousing, transportation related choices and order management strategies of the
organisation. Along with it this report also sheds light on logistics key performance measures
that Seven Eleven uses along with their compatibility in accordance to the dynamics on which
the strategic planning of Seven Eleven depends on. The report will also reflect on the risks that
are associated with the logistics of Seven Eleven along with the measures to subdue them. This
study also focuses on sustainability implications of the strategic logistics that Seven Eleven work
in accordance to including all the dynamics associated with it like sourcing, warehousing,
transportation, retail operations and order management. The sustainability factor will also focus
on Seven Eleven's environmental implications in association with their customers.

REFERENCES
Kain, R. and Verma, A., 2018. Logistics management in supply chain–an overview. Materials
today: proceedings. 5(2), pp.3811-3816.
Stough, R.R., 2017. New technologies in logistics management'. Ann M. Brewer Kenneth J.
Button David A. Hensher (ed.) Handbook of Logistics and Supply-Chain Management.
2. pp.513-520.
Whitlock, K., Abanda, F.H., Manjia, M.B., Pettang, C. and Nkeng, G.E., 2018. BIM for
construction site logistics management. Journal of Engineering, Project, and
Production Management. 8(1). pp.47.
Ghoumrassi, A. and Țigu, G., 2017, July. The impact of the logistics management in customer
satisfaction. In Proceedings of the International Conference on Business Excellence
(Vol. 11, No. 1, pp. 292-301).
Bing, X., Bloemhof, J.M., Ramos, T.R.P., Barbosa-Povoa, A.P., Wong, C.Y. and van der Vorst,
J.G., 2016. Research challenges in municipal solid waste logistics management. Waste
management. 48. pp.584-592.