In 2004, Convenience store in Japan and in US contributed to 48.2% total revenue of IYG
Seven-Eleven Japan contributed 87.6% of operating income received from convenience store by IYG
In 2004, the average daily sales at four major convenience store chains excluding Seven-Eleven was 484,000 Yen
where as Seven-Eleven has daily sales of 647,000 yen
All store had standard size of 125 m2 which was increased to 150m2 in 2004
Seven-Eleven offered to keep SKU of 5000. on average store kept 3000 SKU
Food items were classified in 4 broad categories depending upon storage & transportation
temperature- warm items, Room temperature items, Chilled items and frozen items
In 2004, Processed foods and fast foods contributed to 60% of total sales at each store
By 2004, Seven-Eleven had 290 manufacturing plants to produce fast food items and 293 DC’s
Offered services in store like bill payment services, photocopying, ticket sales and 7dream.com etc.
22-03-2016 3
Indian Institute of Management Raipur
Integrated services digital network (ISDN) linked more than 5000 stores
IS support was through Graphic Order terminal, Scanner terminal, Store computer,
POS register- to improve ordering process
POS analysis data was provided each day to each store- removal of product with no
demand, forecasting, identification of slow and non moving items
3 times daily delivery of rice dishes and Replenishment cycle time of less than 12
hours
At DC, delivery of like product were stacked in one vehicle and transportation was
done by Transfleet
In US, Distribution was through direct store delivery (DSD), wholesalers and CDC’s.
Inventory turnover of 17 compared to that 50 in Japan
Analysis of day to day data for each store and each SKU
• Data congestion due to large volume of data from 3000 SKU × 10000 stores
Cross-docking
• Vehicle breakdown
• Natural calamities
No warehouse