Seven-Eleven Japan Co.: Supply Chain Strategy and Structure
After signing a licensing agreement with Southland Corporation, Seven-Eleven Japan (SEJ) opened its first store in 1974. By 2016, it operated more than 19,000 stores throughout the country, each averaging more than 1,000 customer visits per day. SEJ's strategy was to provide micro-match supply and demand in terms of product and location. It did so by building responsiveness through rapid replenishment. This strategy helped it become the most successful convenience store chain in Japan.
Less than 20 years after opening its first store in Japan, SEJ acquired Southland Corporation, the US company that founded the 7-Eleven convenience stores. Could SEJ's supply chain approach succeed in the US, in light of the lower store density and greater distance between stores? What markets were likely to be best for future growth?