Anna Barnes

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• Anna Barnes
• Harriet Cozart
• Marcy Stringfield
• William Whitlock

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Outline

• Target History
• Marketing Strategy and Customer Base
• Supply Chain and Distribution Centers
• NTE, Target Affiliates, RFID, and Status Reports
• Transportation and Role in competitive Strategy
• Third Party Logistics- NTE

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History of Target

• 1962- The first Target store opens.
• First retail store to offer well known name
  brands at discount prices.
• 1967- Dayton corporation has its first offering
  of common stock.
• 1971- Revenues top 1 billion dollars.

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History of Target

• 1979- Target stores become the corporations top
  revenue producer.
• 1982- Revenues top 5 billion dollars.
• 1994- Revenues top 20 billion dollars.

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History of Target

• 1995- Super Target Stores open
• These stores also include groceries.
• Target also issues the first discount store
  credit card.

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History of Target

• 1998- Revenues top 30 billion dollars.
• 2000- Dayton Hudson corporation celebrates its
  name change to Target Corporation.

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Marketing Strategy

• Marketing strategy is defined as the marketing
  logic by which the business unit hopes to achieve
  its marketing objectives.
• The marketing strategy of a business is very
  critical to their success.

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• Target identifies, prioritizes, and communicates
  marketing opportunities to drive sales and
  enhance their brand.
• Target also takes pride in the fast, friendly
  atmosphere that all their stores display.
• The organization of Targets market strategy
  allows their supply chain to run effectively and
  smoothly.

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Customer Base

• Target is very different from other retailers.
• They do not cater to different geographical
  regions so the supply chain does not change on a
  customer basis.
• Instead they base their distribution on store
  volume and size.

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• The supply chain team at Target helps drive sales
  profitability by delivering what guests want,
  when they want it, at the lowest possible cost.

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Supply Chain

• Target has many distribution centers located
  regionally throughout the country.
• The products are ordered by buyers, the orders
  are then sent to the manufacturers either
  overseas or in the U.S.
• Target imports their products from manufacturers
  in 80 different countries.

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• Target is the second largest importer in the U.S.
• The products are then moved from the
  manufacturers to the distribution centers.
• The distribution centers then send out the
  products to the stores based on the population
  and success of the store.

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Target

• More than 1,400 Retail Stores
• Supply Chain includes several thousand vendors
  producing worldwide, 22 Distribution Centers, and
  its core carriers and consolidators

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Distribution Centers

• Fridley, MN
• Woodbury, MN
• Fontana, CA
• Pueblo, CO
• Sacramento, CA
• Tifton, GA
• Oconomowoc, WI
• Albany, OR
• Indianapolis, IN
• Stuarts Draft, VA
• Tyler, TX
• Wilton, NY
• Suffolk, VA
• Little Rock, AR

• Amsterdam, NY
• Hunstville, AL
• Kalamazoo, MI
• Phoenix, AZ
• Chambersburg, PA
• Cedar Falls, IA
• Camden, SC
• Lacey, WA
• Bakersfield, CA
• Topeka, KS
• West Jefferson, OH
• Midlothian, TX

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NTE

• Fall, 2001, turned to e-transportation leader NTE
  for technology based ready-to-ship operations
• Capitalizes on internet based to yield a more
  efficient way to manage its inbound
  transportation activities
• Leverages the retailers existing operations and
  infrastructure
• Links all trading partners into a centralized
  private trading community for automated
  transactions, timely communications and status
  reports, and highly efficient transportation
  management

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NTE continued.

• Vendors submit ready-to-ship freight information
  at the individual order level electronically to
  Target
• Easily consolidates and optimizes shipments into
  its regional distribution centers
• Transactions and status reports are now done
  online because Target buyers now have real time
  visibility of shipments
• Has enhanced Supply Chain visibility and control

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Effect of NTE

• Prevents Supply Chain overruns and scheduling
  issues before they happen
• Dynamically rate and route all inbound collect
  orders
• Reduce unnecessary transportation moves
• Validates purchase orders before shipment,
  automatically enforce ship-cancel dates, and
  eliminates the processing of invalid orders

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Target Affiliates

• AMC, Associated Merchandising Corporation
  apparel sourcing and product development firm
  (delivers to Target)
• Daytons Commercial Interiors sells office
  furniture
• TRC, Target Receivable Corporation transports
  credit card receivables to Target Corporation

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RFID

• Target uses RFID, Radio Frequency Identification
  tags
• It is an analog-to-digital conversion technology
  that uses radio frequency waves to transfer data
  between a moveable item and a reader to identify,
  track, or locate the item
• Advantage over bar code because it holds more
  data, easily changes data, and it can be changed
  without line of site
• Forwards data from the tag to data processing
  device, the tag and reader communicate with each
  other over a radio frequency channel

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Status Reports

• Uses EDI, Electronic Data Interchange
• Reports current status and of a requirement
  forecast
• An entire purchase order
• Selected line items on a purchase order
• Selected products/services on a purchase order
• Or customer orders for a specific customer in
  their entirety or on a selection basis
• Reports status of single or multiple requisitions
• May update supplier shipments and delivery dates
• Prearranged schedule for delivery dates agreed
  upon by trading partners

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Target Transportation

• Role in the Supply Chain
• Transportation moves products between different
  stages in a supply chain.
• Responsiveness v. Efficiency
• Faster transportation allows Targets supply
  chain to be more responsive, but reduces its
  efficiency.

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Role in Competitive Strategy

• Transportation is used to target customers
  needs.
• I.E. If Targets customers want a high level
  of responsiveness, are they willing to pay for
  this responsiveness. - The more responsive the
  more expensive.
• I.E. Or are customers more concerned with
  price? - If so, Target lowers the cost of the
  product at the expense of responsiveness.

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Modes of Transportation

• Air most expensive but very fast.
• Truck relatively quick and inexpensive. Very
  flexible.
• Rail inexpensive used for large quantities
• Ship the slowest of all modes often the only
  choice for large overseas shipments
• Pipeline used to transport oil and gas
• Electronic transportation the Internet

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Target uses the following modes of
transportation

• Air not widely used
• Quick overseas shipments
• Truck most widely used
• Examples of Carriers for Target APL, BNSF,
  HUDD, K-Line, Target Private Fleet, Airplus LTD,
  Cloverleaf Transportation, Dart Transit, Eagle
  Global Logistics, Global Transportation Services,
  Inc., Hall Brothers, Maersk Logistics, Maersk
  Sealand, Marshall Fields Private Fleet
• Ship used for overseas Shipments
• Imports from Foreign Distributors

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Third-Party Logistics

• Definition an external supplier that performs
  all or part of a companys logistics functions
• 3PLs provide solutions to logistics/supply chain
  problems
• There has been a significant increase in the
  number of firms offering such services, and these
  trends are expected to continue.

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Does The Target Corporation use 3PLS? If so,
HOW?

• Yes, the Target Corporation does use Third Party
  Logistics.
• The following Companies and also 3PLs of the
  Target Corporation have helped them to better
  succeed logistically
• 1) APL LOGISTICS
• 2) YANTRA
• 3) NTE, INC.

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• Targets Problem
• Target had a partially manual ready-to-ship
  process for inbound shipments. Thousands of
  faxes would come in from vendors each week that
  Target would have to sort, optimize, and assign
  to carriers. Shipments were input manually into
  its vendor management system. Target was making
  transportation decisions with limited visibility
  to the shipments, which ultimately led to an
  excessive number of more costly LTL moves.

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NTE Contd

• The Solution
• Target turned to e-transportation leader NTE,Inc.
  in the fall of 2001 for a technology based
  solution for its ready-to-ship operations.
  Capitalizing on new Internet-based technologies
  yielded a more efficient way to manage its
  inbound transportation activities. Through NTE,
  thousands of Target vendors now submit
  ready-to-ship freight information at the
  individual order level electronically to Target.
  

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NTEs has allowed Target to

• Validate purchase orders before shipment,
  automatically enforce ship-cancel dates, and
  eliminate the processing of invalid orders.
• Reduce unnecessary transportation moves because
  of the increased certainty provided by visibility
  into shipments and orders across its network of
  trading partners.
• Create a system that is scalable to accommodate
  future growth, without adding staff or making
  incremental system investments.
• Gain visibility With expanded visibility into
  shipments and orders, Target has better optimized
  its network.
• Reduce expenses LTL shipments are being
  consolidated into TL moves. Cost overruns and
  scheduling issues get resolved before they occur.
  
• Rate and route dynamically Earlier visibility
  into its supply chain enables Target to better
  take advantage of multiple transportation options
  and modes.

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Works Cited

• www.target.com
• www.yantra.com
• www.targetcorp.com
• www.nte.net/dynamic/articles/target_css.pdf
• www.partnersonline.com/pol/stellent/pdfxml/e_edi_d
  _ceg8701BTK_map.pdf
• Custom Business Resoures, Prentice Hall
• Marketing 6e, Gary Armstrong, Philip Kotler
• Reference Bobby Williams Target Logistics