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Contrary to the strategy of maintaining a large inventory adopted by most American retailers, 7-11 is more selective in the products that they put on
- Contrary to the strategy of maintaining a large inventory adopted by most American retailers, 7-11 is more selective in the products that they put on shelves. 7-11 chooses to shelve products that are in high demand and eliminates those that are slow in turnover. The franchise further uses a sophisticated analysis system to speed up the decision-making process and create value-added information for the stores from the collected data.
- 7-11 developed and streamlined its own distribution system that centralized the same type of products coming from different suppliers. The Combined Distribution System helps to ease the process of product distribution by establishing 223 Combined Delivery Centers. A single truck would be able to load products from different suppliers, thus reducing the commute time and maintaining the products at optimal temperatures. According to the article, SEJ, from 1974 to 1998, reduced the average number of vehicles visiting 7-11 stores from 70 a day to ten a day.
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