Sean Taylor

Tanpin Kanri

Bloomberg Business Week, Japan Perfected 7-Eleven. Why Can’t the US Get It Right?:

In Japan, which is much smaller, the chain relies on a robust supplier network, where inventory and food preparation take place at more than 150 factories churning out breakfast, lunch and dinner. Product lineups and displays change quickly based on consumer tastes, with each store responsible for analyzing the sales of every product and adjusting orders to reduce waste and control inventory. It’s a management method known as *tanpin kanri*, which was even taken up as a [Harvard Business School](tab:https://www.hbs.edu/faculty/Pages/item.aspx?num=32533) case study. ā€œJapan’s convenience stores’ food preparation central kitchens and logistics infrastructure would be more challenging to establish and operate efficiently over vast areas in the US,ā€ Boston says.

Staying on top of picky consumer preferences is paramount in a country known for its gastronomy. Popular Japanese television programs regularly feature top sushi, pastry and restaurant chefs to judge the latest products developed by 7-Eleven, FamilyMart and Lawson, the country’s three big convenience store chains.

The success of 7-Elevens in Japan also hinges on their role as a neighborhood hub, where customers can pay their utility bills, send parcels, do their banking and print out official records. In times of national disasters, 7-Elevens team up with local governments and become relief centers and provide supplies.