A Focus on 7 eleven Shift to Fresh foods

Convenience stores have opened up to new ideas that are in tandem with the customer preferences and busy schedules and as a result, they have been able to compensate for the losses resulting from declining gasoline and tobacco sales. As stated in the jera concept news “The days of letting operational conditions limit the customer experience are gone. Instead of settling for bags of chips, drinks and maybe a few baked goods, convenience store operators are ramping up their efforts to give customers fresh, healthy food options” (jera concepts – News, 2015). 7-Eleven was known by another name, Tote’m. “The company's early convenience outlets were known as Tote'm stores because customers "toted" away from their purchases, and many stores even sported genuine Alaskan totem poles in front” (History - 7-Eleven Corporate, n.

Incorporating a fresh food element would require changes to the supply chain model. The most important aspect is to deliver fresh food every day for the consumers to purchase. One of the changes necessary is the reduction of the time of the time it takes to get the fresh products to the stores. Another change that should be considered is on how to order the items and when. The utilization of an inventory with a reorder point will ensure constant replenishment of the stocks. Since 7-eleven is moving toward offering fresh food to its consumers, the company prerequisites are to guarantee that the administration of the supply company is effectual. This leans toward determining if outsourcing most or all of the production is a viable option.

Advantages of 7-Eleven through Outsourcing There are certain advantages to outsourcing part or all of the components within a business. Outsourcing can be achieved through strategic alliances with the companies that will provide the products for 7-Eleven. According to Simchi-Levi (2008), a strategic alliance is “a multidimensional partnership Industry recognizes that trends, including outsourcing, offshoring, lean manufacturing and just-in-time that focus on reducing manufacturing and supply chain costs. With suppliers in different geographical points, the company will be able to reduce lead time ensuring that the products get to the stores quicker. By outsourcing, 7 –Eleven will enjoy the benefit of expertise and information from their parties in the alliance. The companies that specialize in fresh food have sufficient knowledge on the marketing of season items and they will offer their expertise for the mutual benefit of both companies.

Through outsourcing from vendors by entering into vendor agreements, 7-Eleven will be able to produce larger volumes meeting customer demands and reducing the production costs hence supplying the products at a lower price. Garblik explains that “third-party facilities often produce in large volumes; you may be able to get discounts on your ingredients, bottles, labels, and packaging materials” (Garblik, 2012). That is why 7-Eleven should have more than one supplier for its product offerings. The different suppliers will cater to consumer demand and constantly changing tastes without risking the bullwhip effect. I would recommend a pull strategy because of the nature of the products being ordered. Employing a pull strategy will ensure that the 7-Eleven orders the quantity that is demanded by the customers because, in this strategy, production is demand driven.

Advantages and Disadvantages of Radio Frequency Identification (RFID) Technology Radio Frequency Identification is a technology that uses radio frequencies to identify and track assets, animals, and traffic. First, it is considerably expensive when compared to other tracking and identification technologies such as the barcoding system. The cost associated with the implementation of such a system can deter a company from investing. Another disadvantage of the RFID technology is that information can be tainted and not provide an accurate view of the inventory. RFID systems are vulnerable to interference from forklifts; walkie-talkies and other technologies. “Since RFID systems make use of the electromagnetic spectrum (like Wi-Fi networks or cellphones), they are relatively easy to jam using energy at the right frequency” (Logistics & Materials Handling Blog, 2012).

Another company that has succeeded in the fresh-foods business is the Kroger’s brand of companies. This company offers salads, sushi, and soup on the go to its customers. Krogers has evolved over the years into a retail giant and has managed to stay ahead with respect to consumer demand and so can 7-Eleven. These four businesses have mastered the fields of distribution, technology, vendor supply, and execution as pathways into sustaining and positively marketing of quick fresh food. Four Important Pieces of Information That Must Be Gathered and Transmitted Using 7-Eleven’s IT Networks to Support the Fresh Food Supply Chain In the modern world, information technology has become a necessary tool in supply chain management. Effective Transfer of the Tanpin Kanri System from 7-Eleven Japan to the US operations Tanpin Kanri is a Japanese management infrastructure that utilizes a store by store and product by product demand strategy.

This system empowers store level associates to make decisions on the products to offer and gives them the power to order item quantities based on their own educated guesses or insights. Under the Tanpin Kanri system, an associate decides on what products a 7-Eleven store will offer on its shelves. The Tanpin Kanri approach has played a very pivotal role in the success of the 7-Elven retail stores in Japan and the implementation of the same in 7-Eleven US stores may have the same effect. Through the use of the POS data, 7-Eleven US can effectively transfer the Tanpin Knari system into the US. d). Retrieved December 03, 2016, from https://www. cnet. com/news/7-eleven-stocks-up-on-tech-savvy/ Benefits of implementing RFID in Supply Chain Management.