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1.0 INTRODUCTION

7-ELEVEN MALAYSIA HOLDINGS BERHAD

Figure 1: Logo 7-Eleven

Joe C. Thompson Jr. established the "Tote-m Stores" in 1927 however, when customers began
to tote away their purchases in 1946, the name was altered to "7-Eleven" to represent the
expanded business hours of 7 am to 11 pm. 7-Eleven Malaysia Holdings Berhad was 7-
Eleven's Malaysian owner. According to 7-Eleven information, the company through its
subsidiary 7-Eleven Malaysia Sdn Bhd operates over 2,200 outlets across the country with a
total sales income of RM2.1 billion. Bukit Bintang hosted the first store's opening in 1984, and
it is still open today.
In contrast, the first McDonald's location in Ipoh was forced to close its doors in 2017.
Due to its substantial client base, unique product quality, and strong brand loyalty, the original
7-Eleven store is still open today. Although the name was changed to 7-Eleven to reflect the
retail hours of 7 am to 11 pm, 7-Eleven locations in Malaysia and other nations are open 24
hours a day. Over the past few years, 7-Eleven Malaysia Holdings Berhad has received
multiple honors for its outstanding marketing approach and high brand loyalty. It is hardly
unexpected that His Majesty Sultan Ibrahim, the Sultan of Johor, and Tan Sri Vincent Tan, the
owner of Berjaya Sdn Bhd, hold 42.46% and 15.52% of the company's equity, respectively, in
7-Eleven Malaysia.
Finally, the most recent report also mentions Berjaya Assets Bhd's potential takeover
of 7-Eleven Malaysia Holdings Bhd. This story made us aware of 7-Eleven's ability to maintain
its position as the market leader in the convenience store sector for a long time, which could
be the reason why Berjaya Assets Berhad has identified 7-Eleven Malaysia Holdings Berhad
as its objective for privatization.

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2.0 MISSION AND VISION OF 7-ELEVEN MALAYSIA BERHAD

2.1 MISSION

Their mission statement, “To consistently serve the changing needs of customers for their
convenience” is a broad statement that focuses on adapting to change and satisfying the
needs of the consumers. However, they have developed values that complement their mission
statement. They will be attending to uphold these values to achieve their mission statement.

1. Understand- “We seek to understand the needs of stakeholders & and company to
make the best (balanced) decisions”.
2. Simplify – “We work towards making things convenient for people to increase the
effectiveness of our solutions”.
3. Solve- “We find ways to resolve issues that prevent us from delivering value to
those we serve”.
4. Connect- “We communicate to manage people’s expectations most effectively”.

The value of ‘Understand’ focuses on their employees and the survivability aspect of
the company. Seeing as they aim to meet the needs of the stakeholders of the company to
achieve the best results through wise decision-making. ‘Simplify’ addresses the customers,
self-concept, and market elements. They are striving to provide the best convenience by
building stores and providing a range of retail services. They should add values that cover
their technology, philosophy, and public image as it is a form of practice they have been doing
for years. For instance, Adapt- “We will continue to integrate innovative technology to provide
convenience for the public”

2.2 VISION

The vision of 7-Eleven Malaysia is “To be the best retailer of convenience.” The vision they
have provided is too broad since the ‘best’ can be interpreted as ambiguous. While they state
what they want to become in the future, it is however quite ambiguous, as well as the kind of
service they are providing and to whom. A proposed vision would be, “To be the leading
convenience retailer for Malaysia”, seeing as the vision states which market position they aim
to achieve while addressing the customers they wish to serve. It highlights what they want to
become in the future, and how they will do it.

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3.0 ORGANIZATION CHART

Figure 2: Organization chart of 7-Eleven company

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4.0 IDENTIFY THE ROLES OF THE RETAILER, DISTRIBUTOR, MANUFACTURER, AND

SUPPLIER OF 7-ELEVEN MALAYSIA BERHAD

Retail is the sale of goods and services to individuals, as opposed to wholesale, which is the
sale to businesses or institutions. A retailer buys large amounts of items from manufacturers,
either directly or through a wholesaler, and then sells them in smaller numbers to customers
for a profit. Retailers are the last link in the supply chain, connecting producers to consumers.
7-Eleven Malaysia Berhad operates as a retailer, selling various products to consumers
through its network of convenience stores. As a retailer, 7-Eleven is responsible for managing
store operations, marketing, customer service, and sales of goods to consumers. Once the
strategic retail plan is in place, retailers create the retail mix, which consists of product, price,
place, promotion, personnel, and presentation. Most modern retailers typically make a variety
of strategic-level decisions, including the type of store, the market to be served, the optimal
product assortment, customer service, supporting services, and the store's overall market
positioning.
Next, distributors are essential to the supply chain because they move goods from
suppliers or manufacturers to 7-Eleven locations. To make sure that stores are supplied with
the required inventory, they frequently take care of logistics, warehousing, and delivery. Other
than that, comprising various logistics and distribution companies that assist in the storage
and distribution of products sold across 7-Eleven’s network of stores, as well as delivery
service providers that support the company’s home delivery services. Direct distribution is
currently the mainstay of 7-Eleven's distribution channel strategy. The 7-Eleven convenience
store chain serves as the vehicle for the company's direct distribution strategy.
After that, manufacturer refers to the companies that produce the goods sold in 7-
Eleven stores. These could be food and beverage companies, snack manufacturers, or other
suppliers of products that 7-Eleven retails. Generally, product development is when
manufacturers may develop new products or variants tailored to the preferences and demands
of 7-Eleven customers. Manufacturers play a crucial role in ensuring the availability, quality,
and diversity of products offered at 7-Eleven Malaysia Berhad stores, contributing to the
overall customer experience and satisfaction.
Finally, suppliers are entities that provide products or services to 7-Eleven Malaysia
Berhad. This could include manufacturers of goods, as well as companies that supply
equipment, packaging, or any other necessary items for the operation of 7-Eleven stores. For
information from supplier logistics and distribution. Ensuring timely delivery of products to 7-
Eleven stores across Malaysia.

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5.0 SUPPLY CHAIN FRAMEWORK FOR THE 7-ELEVEN MALAYSIA BERHAD

Figure 3: Framework of 7-Eleven company

7-Eleven follows a well-defined supply chain framework to ensure efficient and effective
management of its supply chain processes. Here is an overview of the key elements of their
supply chain framework:

1. Vendor Management

Supplier managers 7-Eleven builds lasting alliances with key vendors to guarantee a
stable supply of essential ingredients for products ranging from snacks and beverages to basic
household goods.

2. Inventory Management

The company manages and implements a system to ensure the optimal level of each
inventory in each store as well as minimize out-of-stock while avoiding excess stock.

3. Distribution Network

Design an efficient 7-Eleven company distribution network to deliver products to stores

on time, taking into account factors such as transportation, warehousing, and order fulfillment.

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4. Technology Integration

7- Eleven companies maintain consistent quality levels across the supply chain by
working closely with vendors and leveraging Technology Increase supply chain transparency
by using advanced technologies such as IoT sensors, RFID, and blockchain.

5. Sustainability Initiatives

In terms of environmental responsibility and sustainability, it is important to find

ecologically responsible sources for raw materials and finished products. 7-Eleven company
Investigates programs that encourage reuse and recycling of unwanted items. Risk
management, especially those posed by natural disasters, economic downturns, and
international conflicts, throughout the supply chain. Incorporate sustainability practices into
the supply chain, such as reducing waste, optimizing transportation routes for efficiency, and
sourcing products from environmentally friendly suppliers.

6. Risk Management

The 7-Eleven company emphasizes continuous improvement in its supply chain

processes. The company regularly evaluates its performance, identifies areas for
improvement, and implements measures to enhance efficiency, reduce costs, and mitigate
risks. Identify and mitigate potential risks, such as disruptions in supply, natural disasters, or
geopolitical events, to ensure the continuity of operations.

7. Collaboration with Franchisees

Work closely with all franchisees to learn and understand local demand patterns adjust
each level of inventory accordingly and provide support for supply chain operations at the
store level.

8. Continuous Improvement

Implementing processes for continuous improvement, including regular performance

monitoring, feedback collection, and process optimization to enhance efficiency and
effectiveness.

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9. Customer Satisfaction

Ultimately, the supply chain framework should be designed to ensure a seamless

experience for customers, with products available when and where they are needed,
contributing to overall customer satisfaction and loyalty. This framework emphasizes
collaboration, innovation, sustainability, and customer centrality to drive operational
excellence and competitive advantage for 7-Eleven.

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6.0 ROLES OF SUPPLY CHAIN MANAGER

On February 14, 2024, we interviewed Mr. Mohamad Tahir bin Aliman, an assistant shop
manager at 7-Eleven. The manager of a 7-Eleven Malaysia store is in charge of managing the
relationship with trade and marketing processes related to new product forecasting, which
includes updating planning tools with current projections to meet marketing requirements
regarding the provision of decorated products. The manager also maintains a working
knowledge of end-to-end supply chain components, including forecasting, inventory
management, promotion planning, basic department management, master data management,
item lifecycle and disposal, seasonal planning, DC operations, ordering and store operations,
supplier planning, and order fulfillment.
Next, to keep stakeholders focused on the plan, the manager leads and facilitates each
S&OP meeting. In addition, the manager spearheads technical initiatives to enhance data
analysis, such as putting planning software into place. This is because the manager supports
and initiates projects like monthly demand plans, consumption models, network & and
production strategy optimization, new business integration & and new product introduction
plans, and has subject matter expertise for demand planning, network optimization, and
capacity planning. The manager is also in charge of overseeing the synchronization of all
operations, financial, customer service, and product management for the SEM product family.
Additionally, 7-Eleven managers in this field are adept at collaborating with Trade,
Sales and Operations, Marketing, and Supply Chain to comprehend the factors driving
demand forecasts. They are also adept at gathering data and sharing it with suppliers and
supply planning concerning forecasts or capacity changes that are noteworthy, timely
promotions, forecasts, and the launch of new products. Evaluate the accuracy of the forecast
each month. Consequently, this can make it easier to compile monthly demand projections
that take into account agreements from many departments and stakeholders.
Finally, the store manager oversees the creation and drives continuous improvement
of world-class demand planning and S&OP procedures to measure, regulate, and improve the
correctness of S&OP plans through clearly defined KPIs. Furthermore, the manager is the
primary figurehead for leading the process of network optimization to save expenses and
optimize service, as well as developing the capacity simulation method to conduct sensitivity
analysis for expansion. In addition, the management makes an effort to interact with all
departments and participate in the celebration’s planning to guarantee well-organized
arrangements.

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