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.
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 What is Seven Eleven’s logistics strategy? Explain in brief. [200 words]................................1 HowdoSevenEleven’ssupplynetworkdesign,warehousing,ordermanagementand 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 logisticsof Seven Eleven making it one of the biggest retail store in Japan, with its operations all over the globe.
HowdoSevenEleven’ssupplynetworkdesign,warehousing,ordermanagementand 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 itSeven 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.
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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 thereforeSeven 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-relatedchoices–Thesechoicesareinfluencedbyuncertaintyin 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 butSeven 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 forSeven Eleven and it makesusethattheircustomerreceiveexactlywhattheyhaveordered.Thishelpsthe 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 thatSeven 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 helpsSeven 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 thatSeven 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 doSeven 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)managementandretail 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 marketplacetheyareworkingin.Alltheoperationsincludingsourcing,transportation, warehousing, ordermanagement 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.
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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 constructionsitelogisticsmanagement.JournalofEngineering,Project,and Production Management.8(1). pp.47. Ghoumrassi, A. and Țigu, G., 2017, July. The impact of the logistics management in customer satisfaction. InProceedings 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.