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The argument of the paper is that the global competitive strength of leading Japanese products lies not only in their efficient supply systems but also in systems of multi‐stage vertical networks. The study explores an example of such a network throughout a multi‐stage industrial complex in the home electronics industry in Japan. Members of this network are an assembly firm, a plastic parts supplier, and a mold processor. The paper concludes that for such collaborations to succeed in creating products of global excellence, the networks should be structured for vertical co‐operation.

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This paper presents a finding from a case study of the convenience store system in Japan. Based upon two theories, strategic network theory and postponement-speculation theory, the evolutionary process of the supply chain management in the convenience store system is explained. Seven Eleven Japan, which is one of the large convenience store chains, has been developing its advanced system for several merchandise categories. This system is beyond the boundary of convenience store chains. The synchronization of production and distribution is persistently being aimed under the condition of the instantaneous consumption.