Target’s Supply Chain
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.
Target’s Supply Chain Essay Example
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 particular classification is modeled to provide impartial, constant, and auditable portfolio appraisals for external monetary reporting purposes (Feller, A. , Shunk 2006).. Value Delivery Options 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. Procurement 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 organizational structure, terms and condition of shipping and consumer requirements (NTE, n. d. ). Inventory Management Inventory Management is the fifth component in the supply chain. Its is very important to have an operative inventory that upholds great turnovers rates and enables a equally balanced system of shortages and excesses.
This balance will benefits the fundamental value of the organization, it also builds and promotes a solid supplier relations and co-partners in the universal supply chain. Targets product portfolio is extensively diverse in inventory; this diverse inventory must be managed with a close eye and never ignored Processing & Transportation The supply chain sixth component within Targets supply chain is processing and transportation. The overall ability that Target’s has to process products relies on how successfully they obtain and allocate.
The rganization regional distribution centers are located on both coasts, East and West side of the United States, Having it’s distribution center spread out enable Target to provide services and supplies too all of it 1,600 retail location in order to maintain and provide a competitive advantage over their major competitors, This process give the organization the ability to forecast and control costs (Pham 2007) In a perfect world a responsive processing system as well as a receptive transportation network that is integrates into the supply chain to improve overall reaction time to customer demands and necessity, because it provides the organization the ability to take control of the distribution of goods upon delivery goods arrival.
Assessment of Supply Chain Efficiency Target’s supply chain seems to have a streamline and efficient balance in where delivery prices are maintained and continues to quality products that consumers requires while building valuable connections with suppliers, market the organization known within the marketplace as the second largest retailer in the country.
While Target fights when gasoline prices rise, the organization strives to involve the corporation to make instantaneous substitutions that will allow a shift in strategy within the supply chain (Pham 2007) Relationship of Supply Chain to Demand Chain Target as and organization put itself in a position to continue on improving their essential capabilities by successfully handling their supply chain. It is important for Target in identifying customer requirements, processes and the overall usage of the demand chain with the supply chain. It is vital in to focus on the entire value chain for both the customer and the stakeholder (Walters, D. , & Rainbird, M. 2007) Conclusion Meeting consumer requirements is one of the organization pillars for producing the best products and services.
Target’s main focuses and priorities are obviously reflected within each of the components in the supply chain. The processes of reducing costs, identifying issues, and improving product quality is an ongoing process for any organization, but Target faces this dilemma on daily basis, in where the process is being managed in the value chain to meet their clients demands.