Target’s Supply Chain
Unit 2 Assignment
GB570 Managing the Value Chain
August 12, 2012
Target’s Supply Chain
The Dayton Company president, Douglas J. Dayton, sought to “draw upon the company’s vast wealth of department store experience” in an effort to “combine the best of the fashion world with the best of the discount world” to create a store where a consumer could find quality merchandise at discounted prices (. After following a desire to shift from a family operated business, in 1962 The Dayton Company formed Target Corporation in 1962. The following paper will outline Target Corporation’s supply chain. The intricate relationship between the demand chain and supply chain will be analyzed. All information will be reviewed to determine if the supply chain is capable of meeting and maintaining supply chain expectations.
Overview of Target’s Supply Chain
“Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our ‘Expect More. Pay Less.’ brand promise” (Target, 2013). Their supply chain stands out among the rest as being one of the best designed supply chains in the retail industry. Target focuses on increasing global networking, offering a trendy product and clothing line, and including value added services, such as Starbucks, to create brand distinction.
Target actively engages in supplier diversity and consistently seeks out “certified diverse suppliers who can provide innovative, competitively priced goods and services, foster community and economic development, and enhance our ability to deliver shareholder value” (Target, 2013). The idea is that this will reduce inventory lead times, lower product wholesale costs, and deliver inventory consistently to the stores, thus improving their product and service specification (Walters & Rainbird, 2007, p.155). This improvement has yielded Target an improved internal financial performance rating and service superiority that backs up their mission statement.
Being a retail industry leader, Target has responded to their consumer’s demand through continually and accurately adjusting their supply chain by investing in certified designers, following consumer trends, offering shipments to accommodate demand, and seeking ways to increase customer service. This drive to continue to grow and strengthen their supply chain has led Target to improve cost of shipping and transportation, investing in technology and strengthening vendor relationships. Important components of Target’s supply chain include order processing and management, product and service evaluation, inventory procurement and management, and delivery (Walters & Rainbird, 2007, p.155)
Product and Service Specification
Demonstrating visionary leadership sets Target apart from their direct competitors, allowing them to select and provide products based on consumer’s needs and wants. Since the main focus of Target, circa 1962, was based on providing excellent services and an upscale shopping experience, they have been able to maintain a trendier image when compared to other discount retailers in their market. Target stores are always clean, bright, and offer a trend-forward merchandise option that continues to feed their customer’s appetites. (Target, 2013).
Many products are imported and must be compliant with existing federal regulations, follow corporate guidelines for quality and brand integrity, and offer features unique enough to stay competitive. After the discount movement made them the first coast-to-coast national retailer in 1989, Target began recognizing that shoppers did not always have time to shop at several stores in one shopping trip. Their first superstores emerged in 1995, which included their traditional retail, plus pharmacies, photo centers, restaurant spaces and “fresh produce, meat and dairy...
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Nobilis, L. (2011). Supply chain management: Order processing. Retrieved August 13, 2013 from http://www.biz-development.com/SupplyChain/6.20.6.supply-chain-management-order-processing.htm.
NTE. (n.d.) NTE customer success stories: Target Corporation. Retrieved August 13, 2013 from http://www.nte.com/wp-content/uploads/2012/10/Target-Case-Study.pdf
Target. (2013). Target through the years. Retrieved on August 12, 2013 from http://corporate.target.com/about/history/Target-through-the-years.
Tirschwell, P. (2008). Target reconsiders supply-chain strategy. Retrieved August 12, 2013 from http://www.ittc.com/uploadedfiles/News/07_14_08_target_reconsiders_supply_strategy.pdf.
Walters, D., & Rainbird, M. (2007). Strategic operations management: A value chain approach. New York: Palgrave Macmillan.
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