A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota. What is a supply chain?
The supply chain is the relationship between retailers, distributors, transporters and suppliers. A supply chain as the network supplies a specific material to the customer (Borgström, 2012). All these components help the production, delivery and the sale of a products and services that are available to the consumers. There are three key components that make up the supply chain. They are supply, manufacturing and distribution (Wise Geeks, 2012). Supply main focuses are on the raw materials that are supplied to the manufacturing which include when, how and from which destination the materials are traveling from. During the manufacturing steps this is when the raw materials are converted into the final outputs and the distribution make sure the finish products arrive to the organization’s shelves for the consumers. Target’s supply chain is the cost leadership over their competitions. The organization sells good quality products for a less price which would be easier for their customers to purchase. According to Porter value chain there are five elements that make up a supply chain. They are * Inbound logistics- Target should make sure the supplies are scheduled for delivery in a timely manner. And the products are good quality (Riley, 2012). * Operations-...
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