7 Eleven

Agenda

Mission

Fun Facts

Competitive Strategies

Store information and contents

Information System

Distribution System

Risks Involved

Mission
At7Eleven,

our purpose andmissionis to

make life a little easier for our guests by
being where they need us, whenever they
need us.

Fun Facts

7Eleven, Inc. is the worlds largest convenience store chain operating,

franchising and licensing more than56,600 stores in 18 countries

July 11th(7/11) is the official birthday of the 7Eleven convenience store chain.
The company celebrates its 88thbirthday this year

7Eleven reflects the 7 a.m. to 11 p.m. hours of operation

Industry Firsts:

Offer Brewed coffee in to go cups

Convenience store to sell prepaid phone cards

Convenience store to offer ATM Service

Convenience store to advertise on TV

Ho Ho Ho! The day most retailers are closed, 7Eleven is hopping.

Sales and Number of Stores

Secret behind this Success??

Competitive Strategy
Market

concentration Strategy

50-60
High

cluster of store supported by a DC

Density Market Presence

Brand

Awareness

Franchise

Services

Advertising

Effectively

Store Information & Content

7-11 offered a choice of 5000 SKUs

Each store carried 3000 SKUs on an Average

Food items classified based on the temperature they were stored

Chilled temperature

Warm temperature

Frozen items

Room temperature

Beverages, Magazines, Soaps & Detergents, Games & Software

Store Information & Content

Host of other services offered

Utility bills

Electricity bill

Gas

Insurance

Telephone

Ski lift vouchers

ATM

Photocopy

Tickets sale

Pick up location for parcel delivery companies

Government services- address proofs

Core Strengths

Information System

Distribution System

Information System

TIS installed in every outlet linked to the Headquarters, suppliers and

distribution centers

POS information system

First company to introduce the

ISDN integrated services digital network was installed, linking more

than 5000 stores, it became one the world's largest ISDN systems

Information System

Hardware systems

Graphic order terminal Manages info and Order

Scan Terminal

POS register Real time data on Sales, Computer, data analyzed for
company, district and store

Store Computer Connected the GOT, Scanner Terminal and POS through
ISDN with DCs and Headquarters, helped deducing trend of Sales and
Customers

- Receiving & inventory

Sales data gather every night at 11pm-> processed -> ready for
analysis next day morning

Advantages of Information System

Greater visibility

Supplier, DCs, Headquarters

Increased efficiency and responsiveness

Tracking inventory

Tracking Customer Requests

Scalable and up to date data

Better customer service

Accurate forecasting, Better Supplier Relationship

Distribution System

Combined Delivery System

Delivery of like products was combined

4 Categories of Trucks depending upon the goods that needed to be

shipped

All Deliveries made during Off peak hours

Delivery Time reduced with use of scanners

Tightly linked the entire supply chain

The TIS system was the backbone

Order placed in store -> Supplier gets notified -> depending upon the
order -> Produce & Ship

Distribution System

Reduced the number of vehicles

1974

2006

70 Vehicles

9 Vehicles

Increased the frequency

171 production facility

158 DCs

Rapid and reliable delivery

No Inventory

7 Eleven in US

Challenges faced

Distribution Structure is different in US

Direct Store Delivery

Wholesalers

Combined Distribution Centers

Goal Introduce Fresh Products

Thank You