I.

Definition of Logistics

• Logistics management is the part of supply chain management that

plans, implements, and controls the efficient, effective forward, and
reverse flow and storage of goods, services, and related information
between point of origin and point of consumption to meet customer's
requirements. The complexity of logistics can be modeled, analyzed,
visualized, and optimized by dedicated simulation software. The
minimization of the use of resources is a common motivation in all
logistics fields. A professional working in the field of logistics
management is called a logistician
 Type Subsidiary
Introduction Industry Retail (Convenience stores
Founded 1927; 92 years ago (as Tote'm Stores)
Founders Joe C. Thompson, Gordon Cheung,
Cynthia Ma
Headquarters Dallas, Texas, U.S
Number of locations 68,236
Key people Joseph DePinto
(CEO & President)
Stanley Reynolds
(EVP & CFO)
Products Slurpee beverage
Big Gulp beverage cup
Other products include: coffee, candy,
prepared foods, gasoline, dairy, snacks,
various assortment of beverages
Number of employees 45,000
(2010 NA)
Company Profile

• Philippine Seven Corporation (“PSC”) was registered with the

Securities and Exchange Commission (“SEC”) on November 23, 1982.
It acquired from Southland Corporation (now Seven Eleven, Inc. or
“SEI”) of Dallas, Texas the license to operate 7-Eleven stores in the
Philippines in December 13, 1982. Operations commenced with the
opening of its first store in February 29, 1984 at the corner of Kamias
Road and EDSA Quezon City, Metro Manila. Considering the country’s
economic condition at that time, the Company grew slowly in its first
few years of existence.
• In July 28, 1988, PSC transferred the Philippine area license to operate
7-Eleven stores to its affiliate, Phil-Seven Properties Corporation
(“PSPC”), together with some of its store properties. In exchange
thereof, PSC received 47% of PSPC stock as payment. Concurrent with
the transfer, PSC entered into a sublicensing agreement with PSPC to
operate 7-Eleven stores in Metro Manila and suburbs. As part of
PSPC’s main business, it acquired or leased commercial properties
and constructed retail store buildings, leasing the buildings to PSC on
long term basis together with most of the capital equipment used for
store operations. In effect, PSC concentrated on managing its stores
and effectively took the role of a pure retailer.
•
• In May 2, 1996, the stockholders of both PSC and PSPC approved the
merger of the two companies to advance PSC group’s expansion. In
October 30, 1996, SEC approved the merger and PSPC was then absorbed
by PSC as the surviving entity. With the consolidation of the respective
lines of business of PSC and PSPC, PSC’s retailing strengths were
complemented by PSPC’s property and franchise holdings. Their
management as a single entity enhanced operational efficiency and
strengthened ability to raise capital for growth. PSC listed its shares (SEVN)
in the Philippine Stock Exchange and had its initial public offering in
February 04, 1998. The shares were offered at the price of P4.40 per share
from its par value of P1.00 per share. In September 17, 1998, PSC
established Convenience Distribution Inc. (“CDI”), a wholly owned
subsidiary, to provide logistics planning and services to its 7-Eleven stores.
Organizational Chart
Importance of Logistics

• The operator of 7-Eleven in the Philippines said it would leverage its

convenience store and warehouse network to build a logistics business.
• Stores of 7-Eleven will serve as pick-up points for items ordered online, in
the same way some Walmart outlets function in the US, said Philippine
Seven Corp president and CEO Jose Victor Paterno.
• The convenience store chain also handles financial transactions such as
bills payment and reloading of prepaid phone and data accounts. Paterno
said 7-Eleven handles 1,000 transactions daily.
• "E-commerce comes up at the right time for us. In a market that is
logistically challenged, logistically difficult we built out, and I can prove this
mathematically, the most efficient logistics network," Paterno told ANC's
The Boss in an exclusive interview.