Dayton Family Supply Chain Management - Research Paper Example

? Target Corporation Supply Chain 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. Target Corporation is a US based company, which was started by Dayton Family in 1962, and it has become the largest retail chain store by operating in 49 states of US (Target, 2012). Overview of Target’s Supply Chain The merchandise imported from other countries is saved in the distribution centers of the company that are located on the different coasts (Tirschwell, 2008). 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 the supply chain, because the advantages of having inventory are balanced with the inventory cost (Van, 2001). The inventory management of Target Corporation is effective because the company makes sure to keep wide collection of its stock, maintain the level of stock, cost obtained for each item is lowered and confirming that stock is always available. The success of Target Corporation is dependent on its inventory management, and this is the reason that the company has maintained good relationships with its suppliers and different plans have been implemented to ensure the appropriate level of in-stock items. Different products of Target Corporation include furniture, apparels, decor, household items, electronic goods, food etc (Target, 2012). The company has done efforts to ensure the effectiveness of its inventory levels. Processing Target Corporation being on the excellence of Supply chain focuses entirely on design and innovation conception. This is how Target is able to meet its cost effective processing goals. According to Target sellers’ quality and convenience are things beyond manifestation or representation. So a product or service is to be like which suits the customer use and application and not just design’s aesthetics (Target Corporation , 2012). By keeping design and innovation conception on the highest regard, Target sets progressive supply chain and processing goals. The corporation has one central distribution cell which is located within every State region. The products are transported from distribution cell to sub distribution centers to get exhibited for the buyers on retail stores. On meeting high value objectives, Target achieves the central function of supply chain (Processing) in time effective manner (Target Corporation, 2012). Transportation The transportation is important for Target Corporation as all inventories are supplied through transportation. The transportation mediums used by the company include ships, rails and trucks. All the items of Target Corporation are imported by the shipment and this shipment is stored in the distribution centers located in different coast of US (Tirschwell, 2008). These items are transferred to regional offices of the company through trucks or rail according to the company’s requirement. Rapid increase of the fuel cost is concerning for the company and this is the reason that company’s is striving hard to decrease its transportation cost by applying different strategies. For becoming more sustainable, the objective of the company is to increase its efficiency for transport, which will not only cut down the cost, but will also help to make the environment neat and clean for the people (Tirschwell, 2008). Assessment of Supply Chain Efficiency The supply chain of Target is one of the most effective supply chain because the company has able to fulfilled the demands of customers and increase its market share in past few years. The goods delivered to the customers are not only low priced, but their quality is also better than other competitors. Target has been able to understand the needs of the customers and this is the reason that company is affiliated with such suppliers that are able to supply merchandise at right time and right cost (Blanchard, 2010). Relationship of Supply Chain to Demand Chain There is always a cross dimensional relationship between demand chain and supply chain of a company like Target, which is expanded in such mass business order. In the context of commercial business requirements, Target holds an integrated system of supply chain and demand chain division, which engages customers’ expectations (demand) with company’s performance activities (supply) in the respective manner. The core objective of the company is to integrate entire chain management process by targeting operational activities and inbound and outbound processes (Blanchard, 2010). Conclusion Supply chain management is an entire chain management process until the product or service is available in the hands of the customer, starting from inbound (procurement, processing, inventory) to outbound (transportation and distribution) (Van, 2001). Target corporation being a largest discount seller, compels with effective and integrated supply chain management system. With the idea of design and innovation, Target is able to win buyer’s perception satisfying the needs of the stakeholders, distributors and retailers at the same time. Target applies advanced work processing methods to meet high value targets of sales and customer satisfaction. Methods include electronic data interference and CMMS for strong communication and information management processes (Target, 2012). Reference List Blanchard, D. (2010). Supply Chain Management Best Practices. New Jersey: John Wiley & Sons. Target Corporation . (2012). Work Order Processing . Minneapolis: Target. Target Corporation. (2012). Here for good: Products & services. Retrieved from http://hereforgood.target.com/well-being/products-and-services/ Target. (2012). About Target. Retrieved September 18, 2012, from http://corporate.target.com: http://corporate.target.com/about Tirschwell, P. (2008). Target reconsiders supply-chain strategy. The Journal of Commerce. Van, A. (2001). Demand and Supply Chain Management: A Logistical Challenge. Breukelen: Nyenrode University. Read More