Target Corporation Supply Chain Analysis

Target Corporation (NYSE:TGT) is the leading large-format general merchandise and discount retailer in the U.S., challenging Wal-Mart in electronics, toys and apparel while also seeking to differentiate with higher-end fashions and products for an upscale audience. As of the close of their latest fiscal year (FY2011), Target operated approximately 1,760 stores encompassing 233,000 square feet in 49 states and the District of Columbia. The company is divided into the retail and credit card divisions and moves the majority of its products through a highly integrated network of 37 different distribution centers, which include four food distribution centers. Target is one of the most well-entrenched large format retailers in the U.S., has the ability to manage their pricing strategies at a level of accuracy and precision that is comparable to Wal-Mart (Henderson, 2001). Unlike Wal-Mart, Target concentrates on a value-based message that concentrates on quality and price differentiation to sustain their gross margins while Wal-Mart concentrates on supply chain efficiency and a continual reduction of supplier and transaction costs (Krishnamurthi, 2001).

Walmart’s approach means frequent, informal cooperation among stores, distribution centres and suppliers and less centralized control. The company’s supply chain allowed consumers to effectively pull merchandise to stores rather than having the company push goods onto shelves by tracking customer purchases and demand. Through the use of universal product codes, implementation of Retail links at the store, use of RFIDs and smart tags, suppliers and manufacturers within the supply chain synchronize their demand forecaste under a collaborative planning, forecasting and replenishment scheme, and every link in the chain was connected through technology that includes a central database, store-level point-of-sale systems, and a satellite network. As per report, there was a 16% reduction in out-of-stocks with the use of RFIDs and pointed out that the products using an electronic product code were replenished three times as fast as items that only used bar code technology. These strategies have made Walmart to be the dominant force over other competitors with information and technology helping its supply chain strategy attain greater

The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.

Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential

In the following sections I will propose a supply chain strategy which will align company goals and initiatives increasing efficiency and driving down cost thereby creating a sustainable competitive advantage through the implementation of a synergistic supply chain strategy.

Supplies are the vital factor to having successful operation and to be efficient with the business you are providing. In order to bring value to the organization, you must insure that customers are satisfied with the quality health care provide in each transports, so that they can continue use transport with future transports.

Comparative Success: Success in this quarter cannot be determined, since the aims were focused on establishing processes to generate as much revenue as possible during subsequent quarters. Therefore, no comparisons are possible or appropriate.

Team 2 has researched and completed a comparative analysis of Mattel’s supply chain design and related costs with that of its major competitor Hasbro and the toy industry. What follows, is a brief background of Mattel’s traditional (non-electronic game) sector, its key competitors and Mattel’s use of supply chain management concepts in addressing the competitive landscape to gain a competitive advantage. The global toy and game market grew by 7.2% in 2007 with a value of $106.1 billion and by 2012, is forecasted to have a value of $126.2 billion, an increase of 18.9% over 2007. The toy market is divided into three primary sectors, namely game consoles, game software and traditional toys and games. Traditional toys and

For over 50 years, Target has provided American consumers with quality products delivered with “a unique shopping experience” (“About Us”, 2015). The retailing giant, second only to Walmart Corporation, secured a Fortune 500 ranking of 36 this year making them one the Top 100 companies in the U.S. (“Target”, 2015). 2014 was a tough year for the company marked with many pivotal moments including the installment of a new chief executive officer.

The value delivery option is another component that supports the supply chain. Providing attention to the changes within consumer demands that will aid in rapid production of consumer products. In order to gain a larger view of the said component it is vital that the value-based method must be clearly understood. Based on the findings of (Feller, A., Shunk 2006).the ability to realign the structure of the supply chain, this process will allows the supply chain to sustain its effectiveness by adopting to changes in consumer necessities with merchandises of larger value. A diversified supply chain is constructed to match the overall components of the chain with customers need in mind. But if this construction of the supply chain doesn’t match the needs it will make nearly impossible for the organization to provide said products and services to the consumer.

Since Wal-Mart is a mass market retailer, its primary source of value that it adds to the company is derived from its supply chain. Wal-Mart has suppliers located all over the world and it purchases goods from a wide range of different types of vendors. Many of the company's primary vendors are directly connected to Wal-Mart's IT systems through what is referred to as an electronic data interchange (EDI). An EDI can instantaneous transmit data between Wal-Mart and their vendors. Such information can consist of order information, stock supplies, demand forecasting and many other key supply chain metrics. The advantages of such a system are clear as they can greatly assist creating efficiencies in the supply chain. However, not all suppliers have developed sufficient IT technologies to participate in an EDI program with Wal-Mart. Another option for greater coordination between parties in the supply chain is web-based supplier integration. Although the web-based systems are not quite as sophisticated as an EDI, they are more accessible for many of the smaller suppliers and they have shown to improve long-term coordination, cooperation, and commitment.

Target Corporation is the fourth largest retailer in the United States. The company operates 1,556 stores in 47 states. The company has three main retail divisions: Target Stores, Mervyn’s and Marshall Fields. Target Stores is the number two discount retailer in the country, trailing only Wal-Mart Stores, Inc. they have distinguished itself from its competitors by offering upscale, fashion-conscious products at affordable prices (Funding Universe, n.d.). Targets supply chain actives has been an important part of and one of the most significant reasons for its huge growth and success. The purpose of paper is to analyze Targets supply chain and related actives to understand its effectiveness and gain a better understanding on how their supply chain contributes to the company’s growth and success.

Target works on trying to find environmentally friendly ways get the product to the customers. They work on reducing their carbon footprint by working with experts on ways to improve their packaging and transportation. (Target Corporate 2016.) They also try to get their manufactures to use sustainable apparel and footwear products. They encourage their customers to follow manufactures suggestion by washing apparel in cold water to help reduce the usage of water and energy consumption. (Target Corporate 2016.) Targets products come from all over the world.

This report provides the analysis and examples of inventory management system and forecasting methods of Walmart. Methods of analysis and evaluation include Walmart strategic vendor partnerships, fewer links in supply chain, cross docking, and technology. Results of methods mentioned show Walmart accruing a high inventory turnover ratio of 8.1 (Bloomberg). In comparison to other retailer on regional and global scale Walmart hits industry highs with 71.9% in market share

The class text states that Supply chain management is frequently divided into supply chain planning applications, supply chain execution applications, logistics management, and warehouse management. Often when companies fail at implementing an efficient supply chain because of the planning section, or inaccurate demand forecasts. The text states electronic data interchange is one of the earliest uses of information technology for supply chain management, Electronic data interchange is the use of the Internet for everyday business transactions. “In this era of information a firm’s supply chain should operate at speed of thought and this is possible only by enhanced e-speed communications and information sharing with their critical partners.” (4)