7-Eleven Looks to Consolidate Drink Deliveries
The 7-Eleven chain has achieved success by consolidating deliveries from various bakeries to its convenience stores in markets around the U.S. Now the company is looking to test a similar approach by consolidating beverages delivered to its stores in Los Angeles. The plan, should the test succeed, would be to expand to other markets and then to other product categories, as well.
As a piece on The Dallas Morning News website points out, the typical 2,400 square-foot 7-Eleven gets 62 deliveries per week. Because the stores are not equipped with loading docks, deliveries come through the same entrance as customers. This causes a disruption in stores and ultimately drives up fuel and other costs associated with making deliveries. As Joe DePinto, president and chief executive officer of 7-Eleven, observed, “Distribution systems were built for big-box retailers, and we’re a small box.”
Discussion Question: Where do you see opportunities for improvement in the convenience store supply chain? What will consolidating deliveries do for 7-Eleven and the companies that supply it with products?