This merchandise is transferred to the regional offices through rail or trucks. The regional offices are responsible for providing merchandise to more than 1700 stores of the company located in different states of US. The effective of Target supply chain is responsible to meet the customers demand, and the company has complete control of its merchandise immediate after the arrival of its shipment (Tirschwell, 2008). Product and Service Specification Product Specification Target being a highest discount retailer is spread in a wide range of products in the utility section. From house hold goods to dry items, from food items to cosmetics there is a big variety of products which Target offers (Target, 2012). Service Specifications Target Corporation being a merger with Associated Merchandising Corporation (AMC) has globalized its service network in discount retail section. In the retail section, Target is divided in three categories of services Target Greatland (shoes and clothing), Target stores (utility services) and Super Target (marts). With conventional product line and with advanced value adding methods, Target has retrieved maximum sales potential by such efficient service administration (Target Corporation , 2012). The company has spread in branches where each branch is working as a separate service unit for effective and substantial service management (Target Corporation , 2012). Order Processing and Management Target’s corporation has advanced order processing methods. CMMS (computerized maintenance management system) is applied in distribution and order processing sections. Maximo is the system which identifies orders on CMMS to send them to different vendors. This is how Target connects from one supply chain function (distribution center) to another (vendors) in a cost effective manner. Maximo carries general order information and order notifications to distribution centers to provide real time service to the customer (Target Corporation , 2012). Value Delivery Options Target being the highest discount retailer is famous on discounts price offers. With valuable discount offerings, Target is able to win customer’s perception in quite extensive manner, as customers get both things quality and service in high discount rates from Target stores. All such open value delivery options for Target Corporation and make its products and services a top priority in the customer’s perception (Target Corporation , 2012). Procurement Procurement is the starting function of a supply chain process. The larger the company is like Target, the broad is its circle of procurement and vendors (Blanchard, 2010). With the application of EDI software on procurement, Target connects with other merchandisers in a cost effective manner. This is to control and management procurement function and to bring right vendors at the right time of reception. Associations like National Minority Supplier Development Council, National Veteran Owned Business Association or US Hispanic Chamber of Commerce supports target to achieve its diversified supplier and procurement goals. This is how Target settles in vendors system of procurement (Target Corporation, 2012). Inventory Management Inventory management comes at the fifth position of
Target Corporation Supply Chain [Instructor Name] Target Corporation Supply Chain Supply chain management has become an essential component for organizations to increase productivity and efficiency in their overall operations, therefore the purpose of this research paper is to evaluate the supply chain process of Target Corporation, for understanding different functions of their supply chain…
As of 2010, Target had a turnover excess of $65 billion, approximately 355,000 employees and was ranked 138 in Forbes Global 2000. Target’s annual report categorises the company’s operations under two broad market segments: retail and credit card. The retail segment offers a wide assortment of general merchandise available either online or at its physical stores.
On the other hand, it is obvious that competent management involves proper planning. In effect, supply chain planning should constitute forecasting, efficient discovery and prioritizing of all essential sources of supply and add value to the product along the supply chain.
At the same time, organizations are becoming responsible for their partners and suppliers’ social and economic performance due to the increased demands as well as strong economic performance. These pressures are coming from a number of sources, which include the community, employees, governments, and socially aware organizations.
Research and practice shows that connecting and informing on supply chain, its management and the distribution of characteristics that dictate management of corporate organizations have greatly contributed to the integration of supply chain and its management.
Nonetheless, SCM also incorporates coordination and collaboration of channel partners including suppliers, intermediaries, other third parties that provide services, as well as, the customers. The concept of Supply Chain Management is increasingly becoming significant in the corporate world especially given that competition nowadays is among networks of organizations known as supply chains rather than between individual companies in the usual sense.
Walmart is one of the companies that have gained competitive advantage by using procurement strategies. Procurement in a large company can be very cost consuming and complex. This causes some companies like Walmart to outsource procurement instead of development world-class procurement capabilities of their own.
The author states that a business strategy includes several organizational functioning strategies, such as supply chain management strategy, production strategy, marketing strategy, human resource management strategy and financial strategy. These all are equally important for an organization to achieve significant business growth rate.
This will affect the overall input and output of the whole manufacturing process. The manufacturing plant will need to be strategic enough that it has to be abundant in term of raw materials, human energy, communication technology, readiness of manufacturing and transportation besides economic factors such as the inflation level.