Target’s Supply Chain
Unit 2 Assignment
John S. Gumbs Jr.
GB570 Managing the Value Chain
Professor: Priscilla G. Aaltonen, M.A.I.S., Ph.D
August 7, 2012
Target’s Supply Chain
In the year1962 the Target Organization was established by George Dayton who categories the organization as a concession retailer within the townships of Roseville, Minnesota. A decade later after the organization established it footing within the industry, the small subsidiary developed into the biggest division within The Dayton Corporation. The company advanced from a single discount store to earning its successes over the years from conventional leased superstore practices and discount vending, in addition to general retailing the organization continued to expand in an increasing rate based on sales, even though the forward focused was based on overall merchandising. Target Corporation had announced their financial revenues to be estimated at $69.9 billion at the end of January of 2012 (TGT Annual income Statement 2012). As the organization strived to reach organization benchmarks, Target supply chain played a significant role in providing all of the organization success.. The main purpose of this research paper is to gather, analyze and assess Target’s supply chain and the efficiency it provides to the overall organization.. Overview of Target’s Supply Chain
As one of the top leading retailers in the nation, the Target Corporation’s has created a way too easily respond to the overall demands of their consumers by proficiently refining the organization logistics of the supply chain. Some of the ways the organization choose to become more effective, is by enhancing shipment and transportation costs to create leverage on operations, this process has provided more value to the transport networks. These are just a few active solutions that Target managed to expand and continue to monitor and evaluate in depth. Being a hands on organization, each opportunity that Target recognized were eventually pursued to bring and increase value of the organization chain, the organization is able to effectively managed and empower its supply chain by refining the overall logistics function. By refining the function it enabled the organization to enhanced, streamline the communication process with vendors, and created strong ways to meet service necessities as a business (NTE, n. d.). This research paper will cover and address each of the seven main components within the supply chain. Each section will include product and service, value delivery options, order processing & management, procurement, inventory management, processing and transportation.. Product and Service Specification
One of t most vital part of the supply chain is the product and service description. Target’s main focus is to provides services for customers, the organization emphasizes is geared more in the direction towards the products. With the new technologies provided data processing has allowed Target to minimize costly procedures as well as improving their product differentiation, quality and service (Department Stores/Broadlines). As the nation’s leading retailer, knowing the information of each product is a significant part of controlling goods including who the manufacturer is, if the product is compliant with current rules and regulations, and many more specifications that characterizes the product’s features to be specially included in Target’s product portfolio Order Processing and Management
There are three main roles and components within the order processing and management stage. One of the stage components starts from the foundation of supply to the fabricators of the alteration process. From the creators, a purveyor processes the orders after a systematic evaluation of the retailer prepared shipment. The retailers obtain the shipment and place it within it inventories, in where consumers will be able to complete purchase transaction. This...
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NTE. (n. d.). NTE customer success stories: Target Corporation. Retrieved on August 7, 2012
Pham, . (2007, December 6). Discount Store Value Chain Model . In Luthuran University.
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TGT Annual Income Statement. (n.d.). In Market Watch-The Wall street Journal. Retrieved August 7, 2012, from http://www.marketwatch.com/investing/stock/tgt/financials
Walters, D., & Rainbird, M. (2007). Strategic operations management: A value chain approach. New York: Palgrave Macmillan.
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