An Analysis of Target Supply Chain Challenges

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Target have faced lot of challenges since last few years including

The 2013 data breach which leads to resignation of its key executives including its CEO Gregg Steinhafel.

It is facing stiff competition and stagnating growth which lead to its store closures in Canada.

And on 10th March 2015 the company announced 17,00 Jobs cuts at it’s Minneapolis Headquarters. Clearly the company is gearing itself for fighting the competition and if they are successful a potential turnaround to the declining top and bottom line. A recent article published by Forbes highlights some of the challenges, Some of them are

- Consumers changing buyer patterns, Smartphone penetrations is at its peak and that means consumers want products faster and at cheapest price. Moreover, other retailers are focusing on close collaboration with their suppliers to ensure product availability and reduce cost. This is an area where Target needs to focus strongly to excel.

- Availability of skilled labor: Retailers are working on shifting their employees focus on selling and customer interaction, that means higher skill requirement and higher pay. The recent hourly rate increase by Walmart is a sign of that. The recent shakeup and changes are promising though, Free shipping for certain orders and analytics team at HQ is a great start to building loyal consumer base and strong collaboration with suppliers. You can read the complete article at


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