Case Study: Target's Supply Chain
Target’s Supply Chain
Unit 2 Assignment
Michael Mc Evoy
GB570 Managing the Value Chain
Professor Craddock
Kaplan University
26 September 2014
Target’s Supply Chain The founder of target George Draper Dayton, had a thought, and that thought eventually became a reality. In 1902 he opened the Dayton Dry Goods company, and from there it just moved forward. In 1911 Dayton’s Department store opened their doors and this was a precursor to the evolution into Target. From the time they opened the doors as Dayton’s in 1911 to what is now Target 1962 they celebrated 50 Years in 2012 and are now enjoying 52 years of service the American Public.
Overview of Target’s Supply Chain A company’s value chain …show more content…
After all the only thing that will separate Target form other chains like Wal-Mart and other discount chains is the ability to deliver the perception of value to the consumer. Value is the only bargaining chip that they have. Most of them will sell the same products but it is the perception of value that makes the difference in whether or not the consumer will purchase the products. Most of the time consumers will make their purchases from a need that has to be filled but quite a few time they will do what is called impulse buying. They will see an item and they just have to have it at that time. Retailers will act upon this and then place items that are attracted to impulse in areas of the store so that consumers will act upon …show more content…
This is probably one of the most important links in the chain. Like most manufactures and competitors, the bulk of transportation is over the road trucking. The big rigs will load at the DC and then start out on their prescribed routes. Most of the time the deliveries will be done at night while the location is closed. The driver will have access to the loading area and a virtual cage area where the drive can on load and off load product only. As long as he stays within the marked off area the alarm will not sound but cross the line and then “POP GOES THE WEASEL”. This way the store associates will be able to check in the order during store hours and not having to wait for the truck to arrive.
Assessment of Supply Chain Efficiency Based on the findings here it would appear that Target’s supply chain is very efficient. With having over 34 DC’s with in the country no location is less than a day away from resupply. With transportation costs being kept at a minimum Target is able to pass the savings to the consumer in the means of lower prices for the product. Target is also able to add value to the shopping experience by using a multitude of vendors providing a wide array of product that consumers both use and require on a daily basis.
Relationship of Supply Chain to Demand
Unit 2 Assignment
Michael Mc Evoy
GB570 Managing the Value Chain
Professor Craddock
Kaplan University
26 September 2014
Target’s Supply Chain The founder of target George Draper Dayton, had a thought, and that thought eventually became a reality. In 1902 he opened the Dayton Dry Goods company, and from there it just moved forward. In 1911 Dayton’s Department store opened their doors and this was a precursor to the evolution into Target. From the time they opened the doors as Dayton’s in 1911 to what is now Target 1962 they celebrated 50 Years in 2012 and are now enjoying 52 years of service the American Public.
Overview of Target’s Supply Chain A company’s value chain …show more content…
After all the only thing that will separate Target form other chains like Wal-Mart and other discount chains is the ability to deliver the perception of value to the consumer. Value is the only bargaining chip that they have. Most of them will sell the same products but it is the perception of value that makes the difference in whether or not the consumer will purchase the products. Most of the time consumers will make their purchases from a need that has to be filled but quite a few time they will do what is called impulse buying. They will see an item and they just have to have it at that time. Retailers will act upon this and then place items that are attracted to impulse in areas of the store so that consumers will act upon …show more content…
This is probably one of the most important links in the chain. Like most manufactures and competitors, the bulk of transportation is over the road trucking. The big rigs will load at the DC and then start out on their prescribed routes. Most of the time the deliveries will be done at night while the location is closed. The driver will have access to the loading area and a virtual cage area where the drive can on load and off load product only. As long as he stays within the marked off area the alarm will not sound but cross the line and then “POP GOES THE WEASEL”. This way the store associates will be able to check in the order during store hours and not having to wait for the truck to arrive.
Assessment of Supply Chain Efficiency Based on the findings here it would appear that Target’s supply chain is very efficient. With having over 34 DC’s with in the country no location is less than a day away from resupply. With transportation costs being kept at a minimum Target is able to pass the savings to the consumer in the means of lower prices for the product. Target is also able to add value to the shopping experience by using a multitude of vendors providing a wide array of product that consumers both use and require on a daily basis.
Relationship of Supply Chain to Demand