Target Canada Case Study Essay

For Target Canada, supply chain is the bottle neck in its operation system. There are two choices, the first one is to change supply chain system to the one used in U.S. segments, the second one is to improve current supply chain system. Obviously, based on the cost on previous supply chain, such as renovation cost and facility rent, it is better to improve current supply chain system. To be specific, the major problem of current system is “data inconsistencies between the goods and the data system, which created major delays”, the new system should focus on data management. Firstly, this system should improve data tracing, so that Target could know where the data error comes from. For example, as for order quantities, it would be better if Target aggregate the quantities at vendor level instead of at DC levels. Secondly, Target need to build some smaller distribution centers that take charge of unexpected supply chain problems, these problem
According to Pankaj Ghemawat, the wealth or income of consumers is the most important economic attribute that creates distance between countries, which influences the levels of trade and the types of partners to trade with. In this case, with the reason that Canada is geographically close to the U.S., before the launch of Target Canada, consumers in Canada are familiar with this brand and shop cross the border. This close geographic distance is one of advantages for Target to expand market in Canada, which saves advertising cost for Target. However, it is a challenge as well, because consumers in Canada expect to enjoy high quality goods and services with same price as Target U.S. Target was faced with the difficulty that providing equal services in a new market, where Target is lack of business network and management experience. These problems come from economic distance between the U.S. and