4 pages/≈1100 words
Business & Marketing
Strategic Management: Supply Chain Analysis (Essay Sample)
Supply Chain Analysis of Target Corporation source..
Target's Supply Chain Unit 2 Assignment Student Name GB570 Managing the Value Chain Professor Name Kaplan University Month Day, Year Target's Supply Chain Supply chain management refers to the Organizational process by whichthe firm can "improve the way the company finds the raw components it needs to make a product or service and deliver it to customers," (-chain.org 2014). The process involves the employment of several basic components, which include planning, sourcing, making (manufacturing), delivering and returning of products. Supply Chain management is generally characterized by managing inflows of goods or materials, operations and distribution functions in an organized way that is aligned and responsive to the demand of consumers. The level of inventory held by a firm is one aspect of great significance though. As a result, organizations ought to develop and implement sets of systems to monitor the overall process of supply chain management in a cost-effective but value delivering manner (Walters, & Rainbird, 2007). This paper focuses on evaluating Target Corporation's Supply Chain Management with an aim of identifying how it meets the company's Demand Chain expectations. Overview of Target's Supply Chain Target Corporation is a major U.S company with over 2,000 stores spread all over the country and Canada as well. George Dayton in Roseville, Minnesota founded it back in 1962. The company is keen on its management strategies giving much emphasis on its customers maintaining great pricing mechanisms and brand originality. In fact, Target's policies refer to its customers as â€˜Guests' and maintains a personalized approach in dealing with them. Also, it goes without saying that the company holds high regards for aspect of design with its â€˜Design for all' strategy displaying products people "love to live with and low prices you can't live without." (-chain.org 2014) Product and Service Specification Target Corporation boasts of one of the most outstanding Supply Chain Management systems in the United States currently. It can be well recognized using â€˜the leader' status- only second to Wal-Mart, for its system that aims to meet customers' demands on a reducing costs perspective. With its "expect more, pay less" approach, the company attracts a great deal of potential customers. It also keeps a direct communication strategy focusing on gaining customer preferences for its reliable placement of products. The company maintains on its website "The smooth operation of our supply chain network is linked to our profitabilityâ€”and the outstanding value we promise our guests." The company utilizes its strengths of market control and operational practical understanding coupled with advanced technological systems to specify its products in accordance to customer needs (Target 2014). Order Processing and Management Because of careful planning, the company employs several Supply Chain Management techniques to secure its inventories. For the past years its inventories levels have increased considerably by exceptional order processing and management for purposes of ensuring timely and quality deliveries to its stores (Murphy, 2010).. Target employs the use of all-inclusive management systems that are characterized by strict and timely requirements for suppliers (Misra, & Choudhary 2010). It also covers aspects of competitively priced purchases and accelerating cycles' time and improving out standings. Value Delivery Options The aspect of â€˜Returning' involves the function of quality assurance by the organization to the customers. The company holds a team of Quality Assurance managers and engineers to execute quality assurance on all hard goods retailed by the company; including general consumer goods, electronics, appliances, Misra, H., & Choudhary, K. (2010).s, cosmetics, sporting goods, school and office supplies and over the counter goods and commodities among others. Currently, the company deals with more than 3,000 different suppliers of such goods. A widespread network under practical coordination and management by Target Sourcing Services (TSS) team of the company. The purchases made by the company are channeled through its 22 regional distribution centers spread all over the United States. Imported purchases on the other hand are channeled via several import distribution centers on the country's east and west coasts before being transported by road to the regional distribution centers (Murphy, 2010).. Procurement and Inventory Management The Target Corporation company has maintained due stability in the retail industry for many years so far. The company acquires products directly from manufacturers and other independent contractors spread all over the world. As such, it has productively maintained a well-integrated Supply chain as a product of complex networking capability. Its unique Supply Chain Management strategies aim at full utilization of economies of scale and ultimately small batch distribution on a high scale via its over 1,500 outlets in the united states alone. for itself, Target Corporation has made considerable and significant investments in warehousing and logistics functions in addition to the use of stock-outs, a considerable advantage to its revenue creation potential (Murphy, 2010). Processing One important factor of the company's Supply Chain Management strategies is the unwavering timing policy. This has allowed for the creation of an outstandingly organized entire supply chain. As a result, Target is able to align all supply chain activities as a structure to guide the day-to-day decisions of its managers (Target.com 2014). Transportation Per se, the company's overall supply chain encompasses thousands of suppliers of goods and services. This facilitates remarkable control and flexibility regarding its logistics as a business functions. To enhance transport-networking operations, the company utilizes a keen communication strategy as an internal strength factor directly involving store managers, workers, consolidators and carriers. The company's structure entails a team of transport and logistics personnel who are highly effective and efficient. Their aim is to "Know the shortest route from here to there" and arrange functions of internal purchases, warehouses and distribution centers for the overall management of the company's supply chain (Target.com 2014). Assessment of Supply Chain Efficiency For the better part of the past few years, Target has reported good fiscal results, indicating a constant improvement of profitability and cost management effectiveness. For the years 2011 and 2012 for example, the company's average sales grew by around 2.5%. A similar increase was also noted in the total number of transactions the company recorded. The cost of sales and profitability has been increasing concurrently too. The company's gross profit has also been o...
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