Non-Traditional Security Risks in Convenience Store Supply Chains

and East Asian International Cooperation: A Case Study of

7-Eleven’s Supply Chain

Jiahao Dai

1,*

, Xi Wang

and Yike Wei

China University of Political Science and Law, Beijing, China

Nanjing University, Nanjing, Jiangsu, China

China Agricultural University, Beijing, China

Keywords: Supply Chain Resilience, Non-Traditional Security, East Asia Regional Cooperation.

Abstract: Against the backdrop of the intertwined processes of globalization and regionalization, the supply chain

systems of transnational convenience store enterprises are increasingly exposed to complex non-traditional

security threats. This study takes the supply chain network of 7-Eleven in the East Asian region as its primary

case, focusing on the management strategies and cooperative mechanisms employed in re-sponse to non-

traditional security risks. It aims to explore how multina-tional corporations can enhance supply chain

resilience within the framework of regional coopera-tion and to assess the actual role played by East Asia’s

non-traditional security cooperation mecha-nisms. The findings indicate that retail enterprises such as

convenience stores often struggle to cope with systemic shocks through isolated strategies alone. In contrast,

regional collaboration and mul-ti-level governance mechanisms significantly contribute to the enhancement

of overall supply chain resilience. Nonetheless, cooperative mechanisms still exhibit notable deficiencies in

institutionaliza-tion, trust-building, and resource integration.

1 INTRODUCTION

In the context of a highly interconnected global

supply chain, multinational enterprises as an

important promoter of economic globalization, their

supply chain management is not only related to their

own operational efficiency but also involves regional

economic security and social stability. Multinational

convenience store chains such as 7-Eleven have built

extensive transnational supply networks across

sectors like food and daily necessities, relying on

dense store networks and just-in-time supply systems

heavily dependent on cold chain technology.

However, the increasing frequency of non-traditional

security threats, including natural disasters, climate

change, and pandemics, has exposed the growing

vulnerability of these systems. Ensuring supply chain

resilience amid the dual pressures of globalization

and regionalization has thus become an urgent issue

for both multinational enterprises and governments.

Corresponding author

This study uses convenience stores as a case to

explore the non-traditional security risks faced by

multinational retail enterprises in East Asia and

examines the role and potential of regional

cooperation in addressing these challenges. It also

identifies current limitations and offers

recommendations for improvement, aiming to

advance the application of non-traditional security

theory in corporate supply chain management. By

analyzing 7-Eleven's strategies for coping with non-

traditional security threats, the study provides

practical insights for multinational enterprises and

empirical support for the theoretical development of

supply chain resilience. Furthermore, it investigates

the function of East Asian regional cooperation

mechanisms in managing such threats and proposes

feasible policy recommendations to promote

government-enterprise collaboration in safeguarding

supply chain stability and fostering regional

prosperity.

Dai, J., Wang, X. and Wei, Y.

Non-Traditional Security Risks in Convenience Store Supply Chains and East Asian International Cooperation: A Case Study of 7-Eleven’s Supply Chain.

DOI: 10.5220/0014372700004859

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Politics, Law, and Social Science (ICPLSS 2025), pages 241-250

ISBN: 978-989-758-785-6

241

2 LITERATURE REVIEW

Non-traditional security (NTS) refers to non-military

threats such as natural disasters, terrorism, and energy

crises. These threats have become increasingly

prominent in the context of globalization and the

expansion of security exceptions, emphasizing global

and transnational challenges that stand in contrast to

the military focus of traditional security. At times,

traditional and non-traditional security issues

intertwine, potentially leading to more complex

conflicts; hence, the interaction between the two is

crucial for national security strategies (Cong, 2014).

With the deepening of globalization and regional

cooperation, the transnational nature of NTS has

become increasingly evident. Since NTS threats often

transcend national borders, Southeast Asian countries

have enhanced regional security through

collaborative efforts (Gong, 2020). This perspective

provides theoretical support for transnational

cooperation, particularly in the context of supply

chain security management. In addition, some

scholars have reviewed the evolution of global

security paradigms, highlighting how non-military

threats such as climate change and pandemics have

gradually become central global security issues

(Cook & Nair, 2021). The “shared security” theory

emphasizes that countries should pursue win-win

cooperation in the face of NTS threats (Wei, 2015),

offering a theoretical foundation for both regional

security cooperation and multinational enterprises'

approaches to managing supply chain risks.

Collectively, these studies provide a

multidimensional framework for understanding NTS,

underscoring the significance of transnational

collaboration in supply chain governance.

Supply chain management (SCM) and food safety

are critical issues in the modern economy, directly

impacting public health, corporate profitability, and

regional economic stability. A supply chain consists

of a network of enterprises or departments

responsible for acquiring raw materials, processing

semi-finished goods, producing finished products,

and delivering them to consumers. Research and

practice on the composition, operational modes, and

coordination of supply chains have contributed to the

development of SCM. Lee’s (2004) “3A” supply

chain theory offers a foundational theoretical

framework for SCM. Agility, Adaptation, and

Alignment are regarded as essential characteristics of

an effective supply chain, enabling responses to

sudden shifts in supply and demand and market

volatility. As SCM theory has advanced, research on

supply chain risk management has also emerged. Ho

et al. (2015) define supply chain risk as the negative

impact of unexpected events at both macro and micro

levels, proposing a classification framework for such

risks. While traditional SCM theories focus on

maintaining and restoring operations, Ponomarov and

Holcomb (2009) introduced the concept of resilience

to SCM. Later studies have moved beyond the

conventional “restoration” paradigm of resilience to

highlight the importance of adaptability and

transformation as integral components of supply

chain resilience (Wieland & Durach, 2021). This

evolution provides greater theoretical flexibility for

managing supply chains under NTS threats. For

enterprises, resilience is a critical feature for survival

and competitiveness when facing supply chain

disruptions or external crises. Enhancing redundancy,

flexibility, and both cultural and organizational

resilience can improve a firm’s ability to absorb

shocks and recover operations (Sheffi, 2007). These

contributions offer both theoretical and practical

guidance for enhancing supply chain resilience and

managing uncertainty in globalized supply chains.

Furthermore, supply chain resilience is not solely

dependent on internal capabilities but also requires

coordination with upstream and downstream

suppliers, logistics partners, and government

stakeholders. With the growing trends of

globalization and regionalization, regional supply

chain collaboration (RSCC) has become a key topic

in both SCM and regional economic cooperation.

RSCC, through mechanisms such as information

sharing, resource integration, and joint planning,

significantly improves supply chain efficiency,

effectiveness, and competitiveness. The success of

such collaboration heavily depends on strategic

alignment, information transparency, resource

sharing, and trust among partners. However,

challenges such as technological integration and

equitable profit distribution require appropriate

managerial strategies and planning to be effectively

addressed (Amyx, 2004). Although RSCC has made

notable theoretical and practical advances, existing

limitations—such as low institutionalization levels,

coordination difficulties, and data security issues—

remain unresolved.

In the context of convenience store supply chains,

food supply chains represent a particularly critical

component. However, their inherent vulnerability

spans the production, transportation, and storage

stages. The perishable nature of food, time sensitivity,

and the complexity of coordinating global supply

chains (Zhong et al., 2017) all pose challenges to food

supply chain management. In a globalized context,

the risks facing multinational enterprises’ supply

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242

chains often exceed the control capacity of any single

firm or state. While some studies have recognized the

challenges faced by food supply chains in East Asia,

most research remains limited to descriptive accounts

of national systems, lacking an in-depth examination

of how regional cooperation in East Asia may help

optimize food supply chain governance. This study

therefore seeks to fill that gap by exploring how

transnational cooperation can contribute to

strengthening food supply chain management in East

Asia in response to increasingly complex NTS

threats.

Furthermore, East Asian countries exhibit unique

characteristics in their approaches to international

cooperation on NTS issues. Existing research has

focused on the necessity, characteristics,

mechanisms, and limitations of regional cooperation.

The transnational, interdependent, and multi-level

nature of NTS threats in East Asia makes it difficult

for individual countries to tackle such issues alone.

Amid rising Sino-U.S. tensions, the potential for

mitigating conflict through economic

interdependence has diminished. Nonetheless, there

are signs of regional cooperation and coordination in

addressing transnational challenges that threaten

public well-being (Jalkebro & Jones, 2021). NTS

cooperation in East Asia involves not only

intergovernmental collaboration but also engagement

by enterprises and non-governmental organizations

(NGOs). The current regional cooperation framework

in East Asia is a complex system spanning multiple

sectors, levels, and actors (He, 2021). Existing

cooperation mechanisms include both multilateral

and bilateral arrangements. Multilateral mechanisms

are mainly ASEAN-centered, including platforms

such as the East Asia Summit (EAS) and the Asia-

Pacific Economic Cooperation (APEC). China,

Japan, and South Korea also demonstrate a preference

for bilateral agreements, which offer greater

discretion in partner selection and cooperation scope

(Corning, 2011). In addition, public-private

collaborative mechanisms have begun to emerge.

Final product production is increasingly distributed

by multinational corporations across regions and

countries based on efficiency and cost considerations

along the value chain (Zhong et al., 2017).

Nevertheless, these mechanisms continue to face

multiple challenges. The lack of mutual trust among

East Asian countries hinders the institutionalization

of collective interaction and coordinated action

(Yang, 2012). In the region, traditional security

multilateralism has failed due to disinterest or

hostility from major powers and intensified

geopolitical rivalries (Howe, 2023). National

interests tend to dominate cooperative engagements,

making deep integration through these mechanisms

difficult to achieve. Yet, the potential for regional

collaboration remains, particularly at the enterprise

level, where multinational corporations play a pivotal

role in supply chain management.

Although existing literature has addressed NTS

threats, SCM challenges, and regional cooperation

mechanisms in East Asia from various perspectives,

several limitations persist. First, most studies adopt

conventional political economy approaches, lacking

an integrative analysis of the intersection between

NTS and SCM. Additionally, although some scholars

have investigated regional cooperation mechanisms,

few have examined how businesses embed

themselves within these frameworks to address NTS

threats. Moreover, current research on East Asian

NTS cooperation is largely conducted at the macro

level, with limited focus on applied cases such as

convenience stores. There is also a lack of causal

analysis that explains how regional cooperation

mechanisms can concretely alleviate supply chain

risks in the convenience store sector. Therefore, this

study aims to fill these gaps by integrating research

on supply chain security and NTS cooperation. It

seeks to construct a causal framework that traces how

external NTS threats trigger supply chain risks and

how East Asian regional cooperation mechanisms

mitigate such risks. Using 7-Eleven as a case study,

this research systematically examines the security

challenges of convenience store supply chains and

explores corresponding regional collaborative

responses, ultimately offering practical

recommendations for advancing regional cooperation

in this domain.

3 RESEARCH METHODOLOGY

This study adopts a case study approach to analyze 7-

Eleven’s strategies for managing non-traditional

security threats within its East Asian supply chain.

Through in-depth qualitative analysis, this method

allows for a contextual understanding of how the

company addresses risks such as natural disasters,

climate change, and public health emergencies (e.g.,

COVID-19), and extracts practical insights applicable

to broader regional contexts.

The case study focuses on 7-Eleven’s operations

in Japan, China, and Southeast Asia, examining its

supply chain structure, operational models, and

responses to key threats. Multiple data sources will be

used, including academic literature, corporate

disclosures, industry reports, and third-party

Non-Traditional Security Risks in Convenience Store Supply Chains and East Asian International Cooperation: A Case Study of 7-Eleven’s

Supply Chain

243

evaluations, to gather comprehensive evidence on its

adaptive strategies under dynamic regulatory and

market conditions.

A qualitative analytical framework guides the

investigation, with attention to:

(1) Information-sharing mechanisms that enhance

transparency and emergency response.

(2) Technological collaborations, such as digital

logistics and smart inventory systems, that

bolster resilience.

(3) Strategic adaptations of supply chain

configurations across varied infrastructural and

regulatory environments in East Asia.

Finally, the study evaluates how 7-Eleven

leverages regional cooperation frameworks to

strengthen its risk management capacity. It also

identifies transferable practices and proposes

recommendations for enhancing supply chain

security and resilience among other multinational

convenience store chains operating in the region.

4 THEORETICAL FRAMEWORK

This study builds a dual analytical framework to

examine the interaction between supply chain

security risks and non-traditional security

cooperation in East Asia, aiming to explore how

multinational retailers like 7-Eleven enhance supply

chain resilience through internal optimization and

regional collaboration. Despite the maturity of their

supply chains, convenience store networks remain

vulnerable to cross-border challenges such as food

safety inconsistencies, logistics disruptions, and

technological failures—issues intensified by East

Asia’s regulatory diversity and susceptibility to

sudden crises.

Given these risks, internal corporate efforts are

insufficient; coordinated regional governance and

cross-border mechanisms are essential. Centering on

East Asian non-traditional security cooperation, this

framework investigates how intergovernmental

collaboration—via institutionalized information-

sharing, technological cooperation, and emergency

response systems—can mitigate retail sector risks and

strengthen supply chain resilience.

Based on this, the study constructs two causal

chains:

(1) The formation of supply chain security risks

driven by external non-traditional threats (e.g.,

natural disasters, pandemics, food safety

incidents).

(2) Their mitigation through regional cooperation

mechanisms.

For example, extreme weather may disrupt

logistics, while regulatory gaps in food safety

complicate transnational sourcing. Technological

disparities, especially in parts of Southeast Asia,

further undermine supply reliability. In response,

regional cooperation can enable early-warning

systems, harmonized standards, and coordinated

crisis responses. For instance, the transfer of Japan’s

cold chain logistics by 7-Eleven to Southeast Asian

branches has significantly improved operational

efficiency.

Integrating these causal chains, the study argues

that regional cooperation in East Asia offers essential

support to retail supply chains under non-traditional

security threats. Mechanisms such as information

sharing, technology exchange, and emergency

coordination not only reduce vulnerabilities but also

enhance public trust and economic stability.

This framework contributes both theoretically and

practically. It helps firms identify vulnerabilities

across three key dimensions—food safety, logistics,

and technology—and informs strategy formulation,

such as adopting dual-sourcing to offset geopolitical

or climate-related disruptions (Sheffi, 2007). At the

policy level, it offers guidance for designing regional

cooperation systems. For instance, developing mutual

food safety recognition among China, Japan, Korea,

and ASEAN could lower cross-border trade barriers.

In times of crisis, firms are encouraged to integrate

into regional logistics networks, while governments

are advised to enhance support for SMEs.

In conclusion, this framework advances

understanding of supply chain risks under non-

traditional threats and offers actionable governance

strategies. By bridging academic theory with practical

feasibility, it supports the construction of resilient and

secure regional supply networks in East Asia.

5 PRACTICAL ANALYSIS OF

SUPPLY CHAIN

MANAGEMENT OF

CONVENIENCE STORE

CHAINS--A CASE STUDY OF

7-ELEVEN

5.1 7-Eleven's Supply Chain

Management Strategy

Currently, the global convenience store industry is

undergoing rapid expansion. Leveraging its global

footprint and supply chain innovation, 7-Eleven has

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become a benchmark enterprise in the sector,

establishing a strong competitive advantage.

According to the Management Report 2024 released

by Seven & i Holdings, as of the end of February

2023, 7-Eleven operated over 84,000 stores

worldwide, with more than 60,000 located in Asia—

accounting for over 70% of its global presence. In

Japan, the number of stores reached approximately

21,544, while Thailand and South Korea each had

over 14,000 and 12,000 stores respectively,

maintaining dominant positions in their domestic

convenience store markets. In China, 7-Eleven also

operates more than 5,000 stores (Seven & I, 2024a).

In order to support such a large shop network, 7-

Eleven has developed a highly centralized logistics

model built around a joint delivery system. In the

early stages of the convenience store industry, most

stores relied on a low-frequency, high-volume

restocking model, which often led to inventory

overstock and product spoilage. 7-Eleven was the

first in Japan to introduce a small-lot joint delivery

model characterized by two main features: small

delivery volumes and shared transportation. By

reducing the quantity of goods delivered per shipment

while increasing the delivery frequency, 7-Eleven

minimizes product waste and ensures freshness on

store shelves. This approach also enables stores to

adjust their procurement strategies flexibly based on

consumer demand. Under the joint delivery system,

suppliers first deliver goods to designated distribution

centers, where products are consolidated and then

distributed uniformly to individual stores. To

maintain product quality, 7-Eleven also utilizes a

temperature zone distribution system, categorizing

goods by temperature requirement—ambient, chilled,

and frozen—and implementing mixed-load

transportation in which delivery vehicles are

compartmentalized to carry products across multiple

temperature zones simultaneously (Lee, 2021). This

system not only ensures the freshness and safety of

food items but also reduces transportation costs

through shared logistics infrastructure and optimized

delivery efficiency.

In terms of store layout, 7-Eleven adopts a high-

density location strategy, which involves

concentrating stores in specific areas rather than

dispersing them. This strategy not only shortens the

distribution radius, reduces distribution costs, and

improves logistics efficiency, but also strengthens

brand influence and increases market penetration.

The high-density layout also facilitates unified

management of shops by the headquarters and

improves overall operational efficiency.

Regarding digitalization in supply chain

management, 7-Eleven began constructing its

information system as early as 1978 and has

continuously upgraded it, eventually forming an

intelligent inventory management system based on

point-of-sale data analysis (Li, 2008). This system

allows for real-time data collection, acquiring sales

data from stores three times a day, with analysis

completed within 20 minutes, optimizing inventory

management and restocking plans. Additionally, the

system has established an information-sharing

mechanism with suppliers, ensuring that suppliers can

access real-time sales trends and inventory levels,

optimizing production and distribution arrangements

to enhance supply chain coordination efficiency (Liu

& Wang, 2015).

5.2 Risks in 7-Eleven's Supply Chain

Management

Though 7-Eleven has successfully built a highly

mature and industry-leading supply chain

management system, it still faces a series of

challenges that not only affect the stability and

efficiency of the supply chain but may also amplify

the impact of crises when encountering non-

traditional security risks.

First, the supply chain management system is

highly dependent on centralized logistics distribution.

This reliance means that any external disruptions to

the logistics network can lead to severe

consequences. Additionally, 7-Eleven's temperature

zone delivery system places high demands on

logistics infrastructure and cold chain transportation.

Any malfunction along the process may compromise

the freshness and safety of food products. Energy

shortages, equipment failures, or management

negligence can result in temperature control failures,

causing significant food waste.

Second, the joint distribution model involves

numerous suppliers and partners, increasing the

complexity of supply chain management. Ideally,

information flows across all segments of the supply

chain are synchronized and consistent. However, due

to differences in management systems among

suppliers, logistics providers, and stores, information

delays or errors are common, resulting in delivery

delays and inventory confusion. Furthermore, the

complexity of the distribution system means that any

adjustments require coordination across multiple

parties, making optimization difficult. When entering

new markets, 7-Eleven must carefully plan its supply

chain to adapt to local conditions, which may in turn

affect the pace of expansion.

Non-Traditional Security Risks in Convenience Store Supply Chains and East Asian International Cooperation: A Case Study of 7-Eleven’s

Supply Chain

245

In addition, 7-Eleven's globalized supply chain

faces challenges stemming from cross-border

regulatory differences and regional standards,

requiring adaptation to varying infrastructure and

policy environments across countries. The World

Bank's Logistics Performance Index 2023 reports

significant differences in logistics performance

across Asia. China, Japan, and South Korea in the

'infrastructure' dimension scored more than 4, much

higher than the Philippines, Vietnam, Indonesia, and

other countries less than 3; in the 'logistics tracking

and traceability', 'timeliness' and 'logistics

competence and quality', China, Japan, and South

Korea all score higher than all other Asian countries

except Singapore (Arvis et al., 2023). These

differences indicate that even geographically

proximate regions like East and Southeast Asia may

exhibit substantial variation in the execution of food

inspection, customs clearance, and cold chain

supervision. This poses compliance and efficiency

challenges for companies like 7-Eleven that rely on

integrated supply systems.

Changes in tariff policies across countries could

also lead to increased costs for goods. Some countries

may impose import quotas or special approval

requirements for certain products, reducing supply

chain flexibility. The instability of international

political situations may also create uncertainty in

supply chain operations. Trade disputes, economic

sanctions, and other geopolitical issues can disrupt

multinational supply chains. For instance, the Russia-

Ukraine conflict has pushed global energy prices

higher, increasing the cost of storing and distributing

goods. Public health crises can hinder international

logistics, while Japan's discharge of nuclear

wastewater has prompted some countries to revise

their import policies for Japanese products.

Finally, the digitalization of supply chain

management introduces new risks. System

malfunctions may result in incorrect inventory data,

disrupted order processing, and delivery delays,

potentially hindering normal store operations.

Cybersecurity threats are also a major concern, as

malicious attacks could lead to system outages, data

breaches, or the manipulation of sensitive operational

information, thereby jeopardizing supply chain

integrity and damaging corporate reputation.

In conclusion, while 7-Eleven's supply chain

management system aims to optimize costs and

enhance efficiency, it also faces numerous non-

traditional security threats. Addressing these

challenges requires not only further optimization of

its supply chain model but also strong support from

international cooperation mechanisms.

5.3 Causes and Impact Mechanisms of

Differences in 7-Eleven's Supply

Chain Management Strategies

7-Eleven adopts significantly different supply

chain strategies across global markets due to

variations in consumer demand, regulatory

frameworks, and infrastructure conditions. For

example, in Japan, consumer preference for fresh

food has led to a high-frequency, small-batch delivery

model, while in China, the focus is on integrating

logistics through regional distribution centers to

reduce operational costs. Regulatory systems and

infrastructure also play a key role: Japan's strict legal

standards have driven the development of an efficient

cold chain system, whereas, in Southeast Asia, where

infrastructure is relatively weak, 7-Eleven relies more

on local supplier partnerships to enhance stability and

control costs.

These differentiated strategies also strengthen the

company's ability to respond to non-traditional

security risks. By diversifying supply chain layouts

and sourcing channels, different markets reduce

dependence on single suppliers or logistics routes,

thereby improving resilience in the face of natural

disasters, energy shortages, and other disruptions. For

instance, in Southeast Asia, diversified procurement

mitigates logistics disruptions, while in China,

regional distribution centers enhance delivery

efficiency.

In summary, the supply chain strategies adopted

by 7-Eleven in different countries and regions are

influenced by a combination of market

characteristics, regulatory regimes, and infrastructure

conditions, and play a key role in enhancing the

company's ability to respond to non-traditional

security threats.

5.4 Regional Cooperation on Supply

Chain Management in East Asia

As a major engine of global economic growth, East

Asia has seen increasing emphasis on cross-border

cooperation in supply chain management. With the

acceleration of globalization and the rising frequency

of non-traditional security threats, ensuring the

security and stability of regional supply chains has

become a pressing issue. Current cooperation in East

Asia is largely built upon the framework of regional

economic integration, emphasizing industrial

connectivity, improved logistics efficiency, and

enhanced risk control mechanisms.

The ASEAN+3 framework (ASEAN plus China,

Japan, and South Korea) has become a relatively

ICPLSS 2025 - International Conference on Politics, Law, and Social Science

246

mature platform for cooperation across political,

economic-security, and socio-cultural dimensions.

Economic cooperation agreements and institutional

dialogues under this framework have strengthened

intergovernmental collaboration in areas including

supply chains, improving the complementarity of

regional economies (Li & Tian, 2010). The signing of

the Regional Comprehensive Economic Partnership

(RCEP) further liberalizes the flow of goods,

services, and investments, providing institutional

support for transnational supply chain integration. In

terms of non-traditional security cooperation,

regional mechanisms such as the ASEAN Agreement

on Disaster Management and Emergency Response

(AADMER), its supporting programs (Ministry of

Foreign Affairs of the People’s Republic of China,

2022), and the Disaster Emergency Logistics System

for ASEAN (DELSA) offer foundational

infrastructure for emergency logistics coordination

and supply chain resilience (Wang & Xu, 2023).

Information sharing and technological

collaboration have also emerged as crucial drivers of

supply chain security. The launch of the ASEAN

Meteorological Data Service Platform for Early

Warning at the 21st China–ASEAN Expo is a notable

example, aiming to monitor and mitigate

meteorological risks to regional logistics networks

(Han, 2024). Additionally, China, Japan, and South

Korea have increased cooperation in digital logistics

and blockchain application, enhancing transparency

and reducing systemic risks in the supply chain.

Multinational enterprises such as 7-Eleven,

operating under highly standardized and efficient

supply chain models, have also become key

participants in regional cooperation. Through cross-

border logistics partnerships and localized strategies,

they contribute practical expertise and promote best

practices for regional supply chain integration.

Despite these advances, several limitations hinder

the effectiveness of regional cooperation. First, the

absence of binding institutional safeguards results in

inconsistent policy implementation and fragmented

cross-border logistics coordination. The uneven

execution of “green channel” logistics policies during

the COVID-19 pandemic highlighted this challenge,

as varying national standards disrupted supply chain

continuity. Second, technological and infrastructural

disparities remain significant. While Japan and South

Korea lead in automation and cold chain systems,

many Southeast Asian countries face financial

constraints and underdeveloped infrastructure,

restricting their participation in advanced logistics

networks and widening the regional gap in supply

chain resilience.

Moreover, existing emergency response

mechanisms rely heavily on voluntary cooperation

among countries, lacking unified operational

standards or robust enforcement frameworks. This

often leads to inefficiency and delays in responding

to sudden shocks. Addressing these challenges

requires a shift from “soft consultations” to

enforceable institutional arrangements, along with the

development of more cohesive emergency logistics

strategies and region-wide coordination mechanisms.

6 THE IMPACT OF NON-

TRADITIONAL SECURITY

THREATS: THE CASE OF THE

COVID-19 PANDEMIC

6.1 Overview of the Event

The outbreak of the COVID-19 pandemic has had a

profound impact on international trade, supply

chains, and the retail industry. China was the first

country to be affected by the pandemic. Excluding the

Spring Festival factor, overall trade activity in China

dropped by 56% in one week from mid-February

2020. As the pandemic spread globally, the global

manufacturing network entered a period of

comprehensive disruption, with both the supply and

demand sides facing simultaneous shocks (Zhao,

2020).

To contain the rapid spread of the pandemic,

countries worldwide implemented measures such as

transportation restrictions, which led directly to

global supply chain disruptions. In the early stages of

the pandemic, global food supply chains faced labor

shortages, disruptions to transportation and

distribution networks, and increased import

restrictions and regulations. During the pandemic, the

time required to import fresh food increased by 2-5

days in some Asian countries, with transport costs

rising by 30-60 percent (ESCAP, 2021). The

pandemic disrupted international logistics, posing

serious challenges for retailers like 7-Eleven that rely

on precise supply chains, and further complicating

supply chain management.

The repercussions of the pandemic on 7-Eleven's

global supply chain have been pervasive, manifesting

across all business segments. As of 2020, 7-Eleven's

domestic convenience store business revenue had

decreased by 50.4 billion yen compared to 2019. This

was primarily due to a sharp decline in foot traffic and

commuting restrictions during the pandemic, which

limited consumption scenarios mainly driven by daily

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247

customers. The operating revenue of overseas

convenience stores decreased by 548.5 billion yen

year-on-year, a decline that more clearly reflects the

impact of lockdown policies in various countries,

disruptions in cross-border logistics, and weak

consumer demand on its international supply chain.

Department and specialty stores' operations were also

severely impacted, with revenue declining by 227.4

billion yen. The supply chain for non-essential goods

experienced more severe compression during the

pandemic. Concerning profitability, the operating

profits of the overseas business sector experienced a

decline of 3.9 billion yen compared to the year 2019.

This decline can be attributed, at least in part, to the

escalating costs of operations, which were

precipitated by complications in logistics and

inadequacies in the supply chain (Seven & I, 2024b).

7-Eleven has sought to augment the proportion of

local procurement to address the challenges of cross-

border logistics disruptions. However, as regional

supply chains cannot entirely supplant global supply

systems in the near term, supply chain management

has become more intricate, and the retail industry's

digital transformation has accelerated considerably.

Nevertheless, supply chain vulnerabilities have

emerged as a pivotal impediment for companies

adapting to market shifts. 7-Eleven has historically

been recognized for its supply chain model, which is

marked by small, frequent replenishments and just-

in-time delivery. However, this model encountered

significant challenges during the pandemic. Large

retail companies that had already developed plans for

online business and possessed strong supply chain

integration capabilities demonstrated more

substantial market competitiveness during the

pandemic (KPMG, 2020).

Furthermore, implementing disparate policies in

East Asian countries during the pandemic has

engendered considerable challenges for cross-border

supply chain management. 7-Eleven had to

continuously adapt to varying logistics management

regulations across countries, leading to reduced

supply chain operational stability. Concurrently,

certain nations have instituted "green channel"

policies for logistics management, while others have

not done so promptly, resulting in deficiencies in

regional logistics cooperation. According to a survey

of 1,789 companies conducted by ERIA,

approximately 70% of companies modified their

customer relationships during the pandemic, 60%

adjusted their supplier relationships, and nearly 50%

changed their production locations. The majority of

these adjustments were finalized in 2020. Moreover,

most companies indicated that these adjustments

were medium- to long-term and would not revert to

pre-pandemic structures (Oikawa et al., 2021).

6.2 International Cooperation in East

Asian Supply Chains throughout

the Pandemic

Facing challenges such as supply chain disruptions

caused by the COVID-19 pandemic, East Asian

countries have launched a series of cross-border

cooperation initiatives at the regional level to help

retail companies overcome difficulties.

China, Japan, and South Korea issued a joint

declaration titled "Stabilizing the Logistics System"

in early 2020 to coordinate cross-border logistics

channels. China also actively implemented relevant

policies, streamlined approval procedures, and

established a green channel for cargo approval during

the pandemic. These mechanisms helped 7-Eleven

import masks, disinfectants, and other scarce goods

from China more quickly to meet consumer demand.

In addition, ASEAN and the three countries of China,

Japan, and South Korea strengthened information

sharing on epidemic prevention and control, shared

logistics and epidemic prevention experiences

through videoconferencing, and provided each other

with emergency medical supplies. At the same time,

governments in various countries have actively

supported companies in responding to supply chain

crises. For example, during the pandemic, the

Changning District Government of Shanghai

facilitated procurement channels for 7-Eleven

convenience stores' logistics partners, ensuring the

smooth operation of critical logistics links. Faced

with the challenges of the pandemic, 7-Eleven

quickly adapted its supply chain strategy, accelerating

its digital transformation and promoting contactless

delivery models. In addition, the company increased

its procurement of essential items such as antiseptic

supplies to ensure adequate store supply and meet

customer demand.

By cooperating with government epidemic

prevention measures, the company strengthened its

coordination with public health systems to ensure

supply chain security. It also adopted more flexible

logistics strategies, such as increasing the number of

logistics suppliers to reduce the risk of relying on a

single logistics channel. These measures not only

increased the flexibility and responsiveness of the

supply chain, but also strengthened the company's

ability to survive a crisis, minimize the impact of the

pandemic on store operations, reduce the risk of

infection for customers and employees, improve the

crisis response capabilities of the convenience store

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supply chain, and increase the company's flexibility

in complying with pandemic preparedness guidelines.

6.3 Inadequate Cooperation in East

Asian Supply Chains

Although East Asian countries have initiated multi-

level cooperation to address cross-border logistics

disruptions, shortcomings remain. First, the lack of

standardization has increased the cost of

coordination. Although China, Japan, South Korea,

and ASEAN have tried to ensure smooth logistics,

there is no mutual recognition of quarantine policies

among countries. For example, China requires

nucleic acid testing for cold chain food products,

while Japan implements a fast-track customs

clearance system, resulting in longer customs

clearance times for companies. Second, the

responsibilities for allocating emergency resources

are unclear. The ASEAN Emergency Logistics

Coordination Center relies on voluntary contributions

from member states rather than mandatory

obligations, resulting in uneven distribution of critical

resources such as refrigeration equipment for vaccine

transport. In addition, the technological

marginalization of small and medium-sized

enterprises (SMEs) is becoming increasingly

apparent, as Southeast Asian SMEs lack the

technological compatibility to integrate into digital

logistics systems. These problems stem from the

design of East Asia's regional cooperation

mechanisms, which have failed to address interest

balancing and enforcement rigor adequately.

7 CONCLUSION AND OUTLOOK

This study examines the causes of supply chain

security risks in convenience stores and the role of

non-traditional security cooperation in East Asia in

mitigating these risks. The findings indicate that

supply chain security is affected not only by external

non-traditional security threats such as natural

disasters and public health crises but also by the

supply chain's management capabilities, regional

coordination levels, and the effectiveness of

emergency response mechanisms. Convenience store

companies, which rely heavily on efficient logistics

systems and cross-border sourcing networks, face

supply chain security issues that are highly

transnational and systemic. Therefore, it is difficult

for individual countries or companies to address

supply chain security risks independently, and

regional cooperation has become a meaningful way to

enhance supply chain resilience.

East Asian countries have already initiated several

supply chain security collaborations; however, the

effectiveness of these collaborations is limited by

various factors. First, regional cooperation lacks a

legally binding force, resulting in low coordination in

cross-border logistics management. Second, uneven

technological cooperation has weakened the

adaptability of Southeast Asian SMEs within regional

supply chain networks. In addition, existing

emergency response mechanisms in East Asia are still

mainly based on ad hoc consultations and lack long-

term, institutionalized crisis management systems,

which limits the speed of supply chain recovery in an

emergency.

To further enhance supply chain security and the

effectiveness of regional cooperation, East Asian

countries should improve their cooperation

framework in the following areas. First, they should

promote the institutionalization of supply chain

security cooperation to ensure that countries can

quickly coordinate their actions in emergencies.

Second, they should strengthen the inclusiveness of

technical cooperation and establish a regional digital

logistics fund to help resource-constrained

enterprises improve their supply chain management

capabilities and promote the balanced development of

supply chains. In addition, further promote the digital

transformation of supply chains through new

technologies, such as intelligent logistics

management and blockchain food traceability, to

enhance supply chain transparency and risk

resilience.

AUTHORS CONTRIBUTION

All the authors contributed equally and their names

were listed in alphabetical order.

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