Managing processes and procedures

To reinforce the integration 7-Eleven Australia had to train new franchisees in the company’s systems and processes. One of the advantages of having existing franchisees take up another store was that they required less training. The company also had to train some staff internally to act as changeover specialists. It also had to modify its franchisee training program and source and train new trainers.

7-Eleven Australia has developed a number of internal support systems such as the Franchisee Matrix used for store performance mapping, an automated stock reordering system, their sophisticated and timely intranet communications systems and more. As part of the synergies achieved through the acquisition these systems are

now deployed in the new stores with operators given appropriate training and ongoing coaching support. The company is now able to leverage its proven system to assist its new stores to increase profitability.

Stores can now take advantage of 7-Eleven’s innovative B2B system which automatically generates a stock replenishment order using scanned sales data, but which still allows franchisees to modify the order based on local conditions. The system can tailor stock levels, pricing, promotions and optimal store layouts to maximise customer spending. Franchisees can compare key performance indicators to benchmark against ‘like stores’. This allows franchisees to implement success strategies used in more profitable stores to improve their own performance.

The Franchisee Matrix allows real-time reporting of sales and profitability data by measuring store performance and engagement against ten financial and non-financial KPIs. This continuous improvement tool analyses strengths and weaknesses, and training and support is offered to franchisees through an Individual Store Development Plan.

The acquisition has also led to a strengthening of its supply chain. Fresh offerings are delivered overnight by Swire Cold storage. Dry goods are delivered on average twice a week by Metcash, who are now handling all dry goods deliveries throughout the entire 7-Eleven Australia store system, thereby improving economies of scale. Another outcome of the acquisition is that 7-Eleven Australia have signed an agreement with Mobil to be its sole fuel supplier.