Target’s Supply Chain Unit 2 Assignment GB570 Managing the Value Chain Jerry Haenisch Kaplan University 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 …show more content…
Firms such as Amazon.com and eBay were some of the first on the market to move toward online stores, and then followed by Wal-Mart and Target to maintain a competitive market presence. This addition of stores and online shopping options created an attraction for consumers and helped make them more attractive to current and potential customers. Order Processing and Management Order processing involves the following steps: customer orders item(s), order received by the manufacturer, order processed by the manufacturer, credit verified by the credit department, order packed and loaded on to truck for shipment, order shipped to customer, and finally, order receive by customer and added to inventory (Nobilis, 2011). Having a competitive supply chain is not successful unless Target has the technologies to deliver the good or service to consumers in an efficient, effective manner. When a consumer purchases an item, via the internet or in store, they are not only placing an order for the item, but providing feedback into consumer trends, thus feeding the demand chain. The retailer then places an order with the distributor, who receives and processes the order. Most systems have their retailers set up with automatic credit verification and payment is processed. Once the payment has been processed the order is then packaged and shipped out to the retailer. It is shipped via truck or train to the retailers, where they take the items and
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).
The ordering process begins with the decision of the customer to submit their order simply by either calling, faxing or mailing their order information. When a customer calls in their order, the customer service representatives takes down pertinent customer information, which includes the customer's name, billing and shipping address, product number and description, quantity and shipping instructions. While taking down the order, the customer service representative access the company's order entry system where inventory checks are conducted as well as credit checks are processed. In addition, delivery options are advised to the customer. Here the customer decides
The aim of this paper is to highlight the strategic position of the company with an overview of its internal and external environment. The study of its strategy, design and other forces, one can easily gauge why and how target has managed to become the retail giant it is today.
Fulfilling a perfect order depends on the journey through the supply chain, it is filled with
When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?
Target Corporation has recognized itself as one of the top retailers in the United States market on the basis of excellent service quality, customer experiences, operational excellence, strong financial position, and a wide array of product offerings. Through its high degree of service orientation at physical outlets and adoption of fair business practices, Target Corporation has become the most distinctive retailer in the eyes of its potential customers. Being one of the top-notch retailers in the United States, Target Corporation has to carefully strategize on its business operations and marketing tactics so as to keep itself in the row of competitive brands of the industry.
The procurement section of Target’s supply chain is an essential part of how it replicate costs to customer requirements. The overall affiliation between customer fulfillment and the supply chain are closely linked to products that are designated based on benchmarks that have been appropriately matched to target costing structured with market criticism and feedback provided. When focusing on purchasing products to sell to customers, the organization selects and processes the best option that best matches Target’s
Samsung's supply chain management has several operational core processes and each process has its own complex design. Therefore, this paper will focus on one main process, the filfullment order process. This paper describes Samsung Electronics SCM operation practices, analysis its fulfillment order process, the challenges encountered, and how they were resolved. The paper also presents the flow chart of the fulfillment process to highlight its operational activities.
Target Corporation is a well-known American discount retailing company, founded in 1902 and is headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the U.S. (Walmart being the largest) (Target, 2014). Target’s analysis will provide an insight into the corporation and its working. It look at and evaluate it in terms of terms of its effectiveness in each of these areas, such as: the structure, goals, agendas, boundaries, control, culture, politics, and decision-making processes. Based on the evaluation, this paper will help to provide suggestions for improvements within the different areas, if the need arises.
First, in aspects of personal selling this cost will be deducted out of the salesperson’s salary whereas all sales personal receive the same amount of salary. Next, the order processing is role of businesses to deliver consumer products accurately when and where the consumer wants the product is beneficial to retail grocery stores, supermarkets and Foodservice wholesalers. Making deliveries order processing top priority will provide the Cooper Company the fortitude to create competitive prices as well as, make deliveries in a cost-effective manner (Sabri, E. H., Gupta, A. P., & Beitler, M. A. 2007).
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.
Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also
Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.
Currently Target Corp operates nearly 2,000 retail stores that are sourced through thousands of vendors, and merchandise finds its way to the stores via 22 regional distribution centers located throughout the United States. Regarding imports, Target's strategy is to route most of the imported merchandise through a small number of import distribution centers on the East & West coasts (mainly Long Beach, CA) and than transfer the goods by truck or rail to the regional distribution centers. In 2001, Target revamped its distribution systems by hiring outside consultants NTE to replace manual operations with electronic inventory and distribution systems. Before the conversion, employees working in supply-chain management relied heavily on manual faxes for much of the sourcing functions completed at the regional distribution centers, which in turn gave employees and managment limited visibility of shipments and order histories. Now a system that links trading parters in a centralized online system is utilized that allows the company to concentrate on orders and their shipments in the early stages of the supply chain. By doing so, the company can take advantage of multiple transportation options, re-route transporation when necessary, correct overruns, and schedule shipments in full trucks. he reduction in costs for supply-chain management have been substantial, allowing Target Corp to continue offering its
Excellent customer service is a way to set the organization apart from its competitors. Differentiation can be achieved through fast and correct execution of product ordering. To improve on the order process it is important to have the correct information provided in a timely fashion to all divisions. For integration to be successful information must be available throughout the entire supply chain.