7-Eleven Case Study Summary

7- Eleven is mostly known for having used the dominant strategy where they build up stores next to their competitors. However, in UAE, they seemed to have used the market concentration strategy where they’ve built 10 stores in clusters full of businesses. Since they know UAE is full of both men and women working, they’ve placed stores in areas convenient to them. All choices made by 7-Eleven are structured to mostly lower the carrying and delivery costs. All the facilities are centralized (due to the few stores) to get the maximum benefit of economies of scale and also reduce the transportation costs between the manufacturer and the distribution center. 7-Eleven also requires all suppliers to deliver to the distribution center where all trucks are temperature controlled for the different types of products. Each truck visits multiple retail stores according to the volume ordered for. This somehow

The facilities should be located close to the customers since this increases responsiveness. The information system is set up to allow store managers to place orders based on evaluation of consumption statistics. The key point to emphasize here is that most decisions made by 7-Eleven are structured to aggregate transportation and receiving to make both cheaper. As for inventory management, high levels of inventory are required for fast moving products. This increases the responsiveness and may also be cost effective due to their high demand. As for products that have a longer shelf life, they can be transported through the various distribution centers. The concept of combined distribution centers, which allows them to deliver fresh items once a day, is also a good strategy used in UAE due to the multicultural people and their different preferences. Delivery times are reduced at stores by using scanner terminals like used in