Pos System in 7-11 Essay Example

the stores' new, extended hours - 7 a. m.

until 11 p. m. , seven days a week. The company's corporate name was changed from The Southland Corporation to 7-Eleven, Inc.

in 1999. 7-Eleven stores Japan In May 1972, Japan 7-Eleven's first store opened in Tokyo. Since then, Japan's 7-Eleven entered the high-speed growth, was opened on 15 stores.At the same time, the 7-Eleven in the United States is at the crossroads of destiny, that the first failure is the development of the market in the city, Followed by irrational investment mistakes, The crux of the problem is the 80's white-hot competition in the convenience stores and shopping malls in the suburbs and the emergence of discount stores, so that they mistakenly take the form of price discounts to rush to fight, the result is bound to make a convenience store lost its competitive edge. 7-Eleven Japan in a very short time, rapidly becoming stronger. 987's 7-Eleven of the United States’ life was in danger, the United States for 7-Eleven out of the woods; they mortgaged the concession contract to the leasing company, 1989 also had to paid appeal to the transfer the Ownership Of 7-11 of united stated in Hawaii and Canada 7-Eleven stores to Japan's 7-Eleven.

In 1992, 7-Eleven Japan completely took over all its work from the headquarters. 7-Eleven is a worldwide chain of convenience stores. It is, since March 2007, the largest chain store in any category, beating McDonald's by 1,000 stores.Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Taiwan, and Thailand. 7-Eleven is a subsidiary of Seven & I Holdings Co. of

Japan.

Today, 7-Eleven is the undisputed leader in convenience retailing. Based in Dallas, Texas, 7-Eleven operates franchises or licenses approximately 7,600 7-Eleven® stores in North America. Globally, 7-Eleven operates franchises or licenses more than 34,800 stores in 17 countries with its largest markets being Japan, the United States, Taiwan, and Thailand.During 2007, 7-Eleven stores worldwide generated total sales of more than $46. 6 billion. Chapter 2: Literature review 2.

1 introductions This chapter introduces frameworks for the information issue. Since the term data, information, IT, IS and information management are used by executives, simultaneously, to explain the same phenomenon, based on their professional background, it is necessary to define the terms thoroughly and to be exact and consistent in using them. 2. 2Definition 2. 2.

1 Point of salePoint of sale or point of service (POS or PoS) can mean a retail shop, a checkout counter in a shop, or the location where a transaction occurs. By synecdoche point of sale often refers to a POS terminal or more generally to the hardware and software used for checkouts – the equivalent of an electronic cash register. Point of sale systems are used in supermarkets, restaurants, hotels, stadiums, and casinos, as well as almost any type of retail establishment. 2. 2. 2Information Information as a concept has a diversity of meanings, from everyday usage to technical settings.

Generally speaking, the concept of information is closely related to notions of constraint, communication, control, data, form, instruction, knowledge, meaning, mental stimulus, pattern, perception, and representation. 2. 2. 3 Information technology Information technology (IT), as defined by the Information Technology Association of America (ITAA), is "the study, design, development, implementation,

support or management of computer-based information systems, particularly software applications and computer hardware.

IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information. Today, the term information technology has ballooned to encompass many aspects of computing and technology, and the term is more recognizable than ever before. The information technology umbrella can be quite large, covering many fields. IT professionals perform a variety of duties that range from installing applications to designing complex computer networks and information databases.A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as the management and administration of entire systems.

When computer and communications technologies are combined, the result is information technology, or "infotech". Information Technology (IT) is a general term that describes any technology that helps to produce, manipulate, store, communicate, and/or disseminate information. Presumably, when speaking of Information Technology (IT) as a whole, it is noted that the use of computers and information are associated. . 2.

4 Information system (IS) A system, in general, is an integrated set of components, or entities, that interact to achieve a common purpose (Schultheis & summer, 1992; Ahituv &Neumann, 1990). “the major purpose of an information system is to convert data into information”(Schultheis & summer, 1992). ISs are “computer- based information processing systems that are designed to support the operations, management, and decision functions of an organization”(Ahituv &Neumann, 1990) . An IS contains such elements as hardware, software, personnel, data, and procedures to accpmplish these objectives.Moreover, it has to coordinate the elemente’ interrelayionships (Long, 1989: Schultheis &

summer, 1992). 2.

2. 5 Information management (IM) IM or information resource management is a “concept advocating that information is a valuable resource and should be managed accordingly, just like money, materials, and people” (Long, 1989). The fundamental objective of IM is “to get the right information to the decision maker at the right time in the right form” (Long, 1989). IM includes everything that relates to the strategy and the tactic, the handling and the proceedings of information processing by the management of a company (Ortner, 1991).From a data processing point of review, IM is the most mature stage in the transition process from separated data handing towards information focused corporate environment.

2. 2. 6Barcode A bar code (also barcode) is an optical machine-readable representation of data. Originally, bar codes represented data in the widths (lines) and the spacing of parallel lines and may be referred to as linear or 1D (1 dimensional) barcodes or symbology. But they also come in patterns of squares, dots, hexagons and other geometric patterns within images termed 2D (2 dimensional) matrix codes or symbology.In spite of there being no bars, 2D systems are generally referred to as barcodes as well.

The first use of barcodes was to automate grocery checkout systems, a task where they have become almost universal today. Their use has spread too many other roles as well, tasks that are generically referred to as Auto ID Data Capture (AIDC). Newer systems, like RFID, are attempting to make inroads in the AIDC market, but the simplicity, universality and low-cost of barcodes has limited the role of these newer systems. It will cost about US$0. 005 to

implement a barcode compared to passive RFID which still costs about US$0.

07 to US$0. 30 per tag.Barcodes can be read by optical scanners called barcode readers or scanned from an image by special software. In Japan, most cell phones have built-in scanning software for 2D codes, and similar software is becoming available on smartphone platforms.

2. 2. 7 Distribution center A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be re-distributed to retailers, wholesalers or directly to consumers. A distribution center is a principle part, the "order processing" element, of the entire "order fulfillment" process.Distribution centers are usually thought of as being "demand driven'. A Distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center.

The name by which the distribution center is known is commonly based on the purpose of the operation. For example a "retail distribution center" normally distributes goods to retail stores, a "order fulfillment center" commonly distributes goods directly to consumers, a cross-dock facility stores little or no product but distributes goods to other destinations.Chapter 3 Strategies of 7-Eleven Japan 3. 1introduction This chapter will explain the important strategy of 7-Eleven Japan, it will divide by three main parts, as: computer network using, special payment provided and also the distribution center. The entire of plans including the information technology and IS information management.

In additional, the barcode use in inventory and payment online without many details with them. Because the main part of this chapter is

the 3 strategies by using which cause the success of 7-Eleven Japan. 3. 2 Strategies of the fittest use in Japan . 2.

1 Quick-to-use computer network In the mid-1980s 7-Eleven has been used POS (point of sale) system which could monitor customer buying behavior, to replace the old-fashioned cash register. 7-Eleven started to establish its own such a system, the hardware manufactured by NEC, but it was so difficult to creation of such a complex software system. Finally, it turned to the U. S.

Microsoft Corp. to help it set up a Windows-based system. The software installed in 1996 to about 61,000 computers, the computers scattered in the 7-Eleven's stores, headquarters and suppliers. 998, to update the system has been completed, by cost of 600 Billion Yen (49 Billion U. S. dollars), that has a direct line to Microsoft Seattle office of the new system to provide real-time technical support, which mean Software support for the ongoing monitoring, the system will automatically repair when it was not working, if the situation happened more than twice, it will Timely notify the maintenance business.

With Microsoft's software become the must-have items in global PCs, This makes the 7-Eleven network link become easily between the customer and network system. -Eleven network platform to fully play its function. Now every 7-Eleven stores have installed a satellite receiver, To use satellite receiving was not only cheaper cost than to use ground fiber optic cable, but also for suburban stores, this is the only viable option. Japan is in a high seismic zone, Satellite receiver also provides two sets of stores secure telephone lines, their host in Tokyo and Osaka.

Such internal network systems close ties to suppliers, shop, employees; it was a dream to retail business.

This new technology system has four major advantages compared to other chain retailers in Japan. (1)Can monitor customers’ demand. Japanese 7-Eleven's information systems department director Makoto Usui said:” We believe that change is the essence of the competition. Enterprises do not sell goods to customers, but the development of enterprises is promoted by customers need.

(2)7-Eleven companies can use the sales data and software to improve corporate quality control, product pricing and product development. With this system, 7-Eleven Inc. ay three times a day to collect all the information about store sales, and finished analysis in 20 minutes. This makes 7-Eleven companies to differentiate which products or packaging to attract customers.

7-Eleven experience new trends and development of high-quality products is far higher than that of other manufacturers. (3)The adoption of the new system will help company to forecast market trends. Customers are changing more and more, shortening product life cycle in general has become a new trend of development.Boxed lunch, rice balls and sandwiches almost constitute half of the sales a convenience store whole day was a common phenomenon, but this fashion continuing trend of the time is very short.

7-Eleven's claimed that it can keep pace with the trend in part because it has been concerned about the weather. From hundreds of private Meteorological Center reported that 5 times a day to reach all the shops, each covering 20 km radius of the center of the region, In Japan this is very useful, because 40 km far away from the town, the temperature difference can be 5

degrees.Each report will be compared temperatures today and yesterday. (4)The investments on information technology of 7-Eleven company increases supply chain efficiency. To speed up the flow of orders, if you gives a order in 10:00 am, you can get the goods at 16:00 pm, orders for electronic processing is not more than 7 minutes.

These goods were sent to 230 service distribution center which 7-Eleven's only. The distribution truck drivers to carry the electricity card with a bar code on it, when they reach the point of cargo, can scan the card on the computer in store.If a driver is always late, the researcher will do the research on delivery route or increase its delivery trucks in order to reduce the delivery volume. Similarly, 7-Eleven also help suppliers and manufacturers to control their replenishment. 7-Eleven not satisfied with this set of network-based enterprise technology systems, based on Internet technology development projects already under processing, it is planning to install a Japanese company named Ariba provide e-commerce software used for office supplies such as bulk purchasing to reduce costs.Japan's 7-11 now can reduce the cost of management about 700 billion Yen per year, it will be able to save more by using Internet technology.

In addition, basis on the huge chain of convenience stores, 7-Eleven should become its own online payment transactions and delivery point. Many customers of E-shop- Books (a books selling company) have chosen in the 7-Eleven to delivery and payment. It also helped 7-Eleven attract the application of the passenger flow, making 7-Eleven's average daily sales is 1. 5 times than opponents. 3. 2.

2 The use of practical methods of payment, expanding

their scope of businessIn 1987 after the company installed a bar code identification system, 7-Eleven stores has become a public pay station for supplies bill (water, electricity, gas, etc. ). Almost 15 years later, this change (only increase a little investment in software systems) so that the 7-Eleven have 3% share in this huge market, the competitors in this market, including banks and post offices. Now, 7-Eleven stores make a new plan that order online and payment in delivery stores to increase the consumers.

Some customers have doubts and misgivings by paying online via credit’s cards, they are more willing to pay cash in the shops, and this is a smart move.As 7-Eleven said about 75 percent of online shoppers prefer pay in the reality stores. Sales of 7-Eleven stores per day were 50% higher than some of its biggest competitors. Japanese 7-Elevens offer not only food, drinks, and magazines, but also video games and consoles, music CDs, DVDs, digital cardreaders as well as seasonal items like Christmas cakes, Valentine's Day chocolates, and fireworks. Slurpees and Big Gulp super size soft drinks are no longer sold in Japan; these products were not popular when 7-Eleven originally opened in Japan.

7-Eleven South China General Manager Mr.Ma Shihao summed up management experience in this aspect as: In Guangzhou, China 7-Eleven is the first to set up self-service payment terminals of the 24-hour retail outlets. In addition, this terminal not just to providing a variety of paying functions, customers can also purchase tickets and insurance. In Shenzhen, According to a market research 7-Eleven found that customers prefer to pay in cash to pay phone calls, 7-Eleven to open

up the cash to pay phone service platform, it open 24 hours. Customers can go directly go to the cashers tell the cell phone number, and pay, the whole process will be finished.

In order to meet the needs of the majority of internet users, 7-Eleven use the bill payment service platform to expand the scope of application, to provide "e-currency" pre-paid service network for Web site. The first user that use of this service is huge hits and registered members’ website, Sina (sina. com). Since SINA launched on-line charging platform "SinaPlay" last year, internet users accept it, the registered users on the increase.

In recent years, 7-Eleven according to the requirement of customers, Continue to add services, use of the 7-Eleven stores links, expansion of the eight 24-hour convenience services, including: 1)relating to telecommunications services: This service is including various types of phone cards, mobile phone recharge cards, to provide mobile phone SIM card and mobile phone charge, and so on. (2)Internet-related services: This service is including game charging card, website credit card, and so on. (3)Ticketing Service: This service is including the lottery, all types of concerts, exhibitions and lectures tickets, and parking cards. (4)Registration for the collection service: Registration fees of various types of training agents (5)Order Service Gifts, fashion stuffs and so on. You can order them online. 6)Door-to-door services: According to the needs of customers in different regions, to provide door-to-door services; (7)Traditional service convenience The sale of stamps, copy, fax, etc.

(8)Payment services: In addition to the use of shops outside the network edge, 7-Eleven has also used the counter to deal with the characteristics of the transaction, the first

in the market to provide alternative means of payment networks, development of the service fee. 3. 2. 3 Centralized management of logistics Typical 7-Eleven convenience stores are very small; with a site area on average is about 100 square meters only.However, the shop is providing up to more than 3000 kinds of products to the daily lives.

Although the convenience stores supply a wide range of products, usually there is no storage place for goods . If stores want to increase sales, shops should be big. In this way, all the goods must be added in a time through the distribution center. If a consumer want to buy something but the stores do not have, Stores will lose a sales opportunity, the reputation of convenience stores will be damaged. (1)The establishment of regional distribution centersIn order to ensure the efficient supply of goods, 7-Eleven in Japan had to change the old distribution channels reasonable.

In the past, many Japanese wholesalers put themselves as a particular manufacturer's special agents, just can operate only one manufacturer's product. In this system, if retailers want to operate a series of products, they had to deal with many different wholesalers. Each wholesaler must use individual truck to delivery to retailers, under these circumstances, delivery was inefficient, and delivery times were uncertainty, but people always ignore this kind of distribution system which was inefficient.Under the new distribution system, a commission appointed by the wholesalers that responsible for a number of regional sales activities, authorized to operate from different manufacturers.

In addition, 7-Eleven signed a sales agreement through wholesalers, manufacturers, to the development of efficient distribution channels and to connect all the

stores. 7-Eleven according with the different groups of goods and different to establish several common distribution centers, unified set the products by the Center then distribute to the various outlets.Geographical division in the general is vicinity of the central city shopping district 35 kilometers, and other parts of the market for a radius of 60 km. To establish a common distribution center in each regional area, in order to achieve high-frequency, multi-species, small distribution units.

After the implementation of the joint logistics, the shop every day to receive delivery trucks from more than 70 cars dropped to 12. In addition, this system that a common distribution center has made it fully reflect the sale of goods, and inventory in-transit information, 7-Eleven grasped the initiative in the whole industrial chain.In the situation of price competition, 7-Eleven reduced costs, get a considerable space for enhance the overall profit. (2)Tailor-made logistics system The expansion of the scale, and establishment of a centralized logistics system although leading by 7-Eleven, the construction of the logistics system, it is the cooperation of manufacturers and dealers according with 7-Eleven's network expansion that made according to 7-Eleven’ unique business processes. These technologies have provided on-line delivery networks, digital sorting technology, purchase of vehicles and special logistics standardized system of bar code technology.

For example, in Japan, 7-Eleven's cakes distribution is providing by wholesalers A company. At first, they used their idle warehouse for a 7-Eleven engaged in logistics activities, and ask special people operated and managed the warehouse. However, with the 7-Eleven's rapid expansion, A Company has to ensure its supply of goods, increased the construction and development of logistics center, established four major

distribution centers in Kanto region. Each distribution center was in charged for supplying cakes to near its 500 7-Elevn stores, the species probably between 650 to 700.Every morning each distribution center to deliver goods form production enterprises from 8:00 to 10:30, in storage until 12:00.

In order to ensure a stable supply, each distribution centers has a 4-day safety stock, in accordance with the standard of sales and production to add stock in timely. Distribution centers start to make the new delivery plan for the next day on every 11:30 AM. The plan is including distribution line, distribution outlets, and distribution types. After plan making, they print out the notes on time, and pass to the relevant departments.At the same time, through the computer department to issue requirements of the digital stock.

To set up distribution process: From the time of a group of distribution logistics activities, A shop stock needs about 65 seconds once, the cargo handling time needs to spend about 5-6 minutes. Count and classify the products need about 15 minutes ,all 170 -180 stores need more than 4 hours, that is, the entire logistics activities around 4 hours( no waiting time of trucks waiting in the distribution centers) In general, the delivery trucks will tay one night in goods distribution center, until the next morning 4:30 to 5:30, according to the principle which from far to recent to distribute to stores. The first delivery truck should be arrived at 6:00 am. In perfect situation, it will cost 15 minutes by transportation between each stores, and plus 15-minute break time in every store . the total time of transportation between each store

required for half an hour; Trucks should finish all the delivery no more than 9:30 or 10:30 in the morning.

From the distribution efficiency of the vehicle, in addition to the special climatic reasons, the average cost of vehicle distribution of goods in the amount of 750,000 yen, the loading rate stability can be up to 80%. Distribution Center supply the value of goods is average 50 billion yen per monthly, equivalent to 1,000,000 Yen for each shop supply of goods. The cost of running trucks every day for 24,000 yen, equivalent to 3. 2 percent of the amount of supply, the cost of management by objectives in the value of 3. 0% -3. 5% ranges for 7-Eleven reduced the number of logistics costs.

Now, 7-Eleven in Japan has been achieved three times a day delivery system. These include a special distribution, that is, when the weather changes which is not expected to occur the next day, there is an additional distribution of goods. Through its centralized logistics management system, successfully reduced the original price of goods is equivalent to 10% of the cost of logistics. 3. 3conclusion Management of goods by using information technology is 7-Eleven's most proud of. As early as 1978, 7-Eleven began construction of information systems, since then, information systems were rebuilt four times.

At present, 7-Eleven Japan has developed into one of the highest degree enterprise of automation and retail information technology. Through its well-developed information system, and the use of satellite communications, 7 –Eleven can be analysis the products in detail, give the right order and commodity management. Because of this, 7-Eleven has highly efficient logistics; it not only has the huge

logistics and distribution systems, and the implementation of its co-distribution, and global logistics as an effective management and strategy that have been accepted by the world. Chapter 4 ConclusionBecause network economy broken before, business men face the information technology understanding is more realistic. Internet has its own unique advantages and specialty, Powerful interactive communications and information dissemination will help to facilitate the enterprise market research.

It is useful on all the process of supply chain. To reduce lots of cost during lean manufactory that from plan to produce to sales, it also reduces the production cycle. However, the Internet has its drawbacks, Open architecture will bring a huge amount of information, but it also affects the network security.In particular in the majority of people do not accept the electronic payment system before; they prefer the use of the counter payment, that is a very practical approach; At the same time, the use of the network and set up the logistics system is very efficient, especially in the commercial chain, logistics and its status in the equivalent of the human blood system.

To sum up, Japan 7-Eleven Inc. , integrate the Internet and traditional marketing methods together ,changed the principle of operation that change the old principle which sales what already production to new methods which is producing what the consumers’ needs.Since now, 7- Eleven U. S. start to learn the strategy from Japan, Seven-Eleven Japan had discovered that a centrally located commissary business linked to stores via a daily delivery system allowed them a cost-effective way to distribute high-quality rice balls and bento lunchboxes to their stores. Seven-Eleven Japan was getting three deliveries a day

with a delivery cost of between 4 and 6 percent on the dollar.

In the U. S. , 7-Eleven was getting most of its goods once or twice a week and our delivery cost was between 10 and 20 percent.Clearly Seven-Eleven Japan's infrastructure was a tremendous advantage.

Appendix A: General references Reference: http://blogs. zdnet. com/digitalID/? p=37 http://www. 7-eleven. com/AboutUs/History/tabid/75/Default. aspx http://en.

wikipedia. org/wiki/7-11 http://en. wikipedia. org/wiki/Point_of_sale http://findarticles. com/p/articles/mi_m4070/is_2002_Nov/ai_94145233/pg_1? tag=artBody;col http://www.

sobp. yuntech. edu. tw/Articles/90Y/STG_90/STG-090-0059. htm http://www. wretch.

cc/blog/robinfancla/12129762