Target Corporation

A well planned transport logistics is key to the success of any organization. Companies need to create a clear plan on how they would transport procured raw material and products to its premises. An elaborate transport plan is also necessary for the ferrying of manufactured products to the suppliers or clients. This paper is going to explore the transport logistics of Target Corporation, also known as Target, and propose a Transport Improvement Plan (TIP) that would help to improve the supply chain of the company.
Background Information of the Company Target Corporation is an award-winning retail giant and one of the largest retail stores in the United States of America. The idea of the business started with a New York native known as George
D. Dayton in 1881(Target Corporation, 2017). Dayton decided to explore the markets in the Midwest that were growing at a high pace. Dayton then stayed for a long time while saving money for the establishment of the business. Dayton then chose Minneapolis as the most appropriate place that offered grounded open doors that would lead to the development of the business. Target Corporation was thus established in 1962, and has grown to become the second-largest rebate retailer in the United States of America, behind Walmart. The retail giant is a segment of the S&P 500 index (Target Corporation, 2017). Target Corporation is currently headquartered in Minneapolis, Minnesota. Before the opening of the Target store in 1962, the organization was previously established as Good Fellow Dry Goods in 1902 (Target Corporation, 2017). After the transformation of the organization to Target store in 1962, the organization grew into a big division under the Dayton-Hudson Corporation. In 2000, the company changed its name to become Target Corporation. As at the year 2015, Target Corporation operated 1,801 locations that are spread throughout the United States (Target Corporation, 2017). The store has managed to establish itself as a giant retailer that is closely competing with the largest retail store in the United States, Walmart. The retail is organized into one unit that incorporates the markdown store Target, little organizations that are known as City Target, the hypermarket Super Target, and the Target Express. The organization also grew to establish a Canadian backup in March 2013, which currently has 133 areas (Target Corporation, 2017). The retail formats have been consolidated under the Target branding. The store has established itself as a popular retail chain for younger shoppers. Its philosophy incorporates “the needs of its younger, image-conscious shoppers” has been represented in the latest fashion trends that it stores to attract the younger shoppers. This is in contrast with the Walmart philosophy that emphasizes the sale of its products at low prices. Due to its focus on the latest trends, there was a boycott in 2016 that targeted the franchise as a result of its progressive transgender policies 9Target Corporation, 2017).
Services Offered by the Company Target Corporation processes millions of many customer exchanges on a day-to-day to basis as the premium framework for the card people who spend highly. The company is involved in offering help to small entrepreneurs and business leaders for them to succeed in their purchasing power, cash-related control, and flexibility. Another service includes promotion and offering information administration to traders so that they can succeed in building their organizations. However, their main business is offering retail services to their customers in the United States and Canada. The Target stores have succeeded in offering their products at relatively low prices as a result of their cost-cutting measures as a result of good management practices and carefully planned supply chain management strategies (Target Corporation, 2017).

Store Formats To understand the supply chain of Target Corporation, it is important to have a broad understanding of its store formats.
The organization operates different formats that include Target, Super Target, and Flexible Target Formats. The Target discount store was first opened in Roseville, Minnesota in 1962 (Target Corporation, 2017). The stores have grown significantly to currently cover approximately 136,000 square feet. The discount stores sell general merchandize that include hard lines and soft lines. Most of the Target stores are built following the standard big-box architectural style. The company has also created emphasis on “customizing each new store to ensure a locally relevant experience…that best fits the surrounding neighborhood needs” from August 2006 (Target Corporation, 2017). The philosophy has seen the company invest in products that best capture the situation of their environment thus attracting different clientele based on the location of the store. Initially, the only format that operated in Starbucks Coffee counters was the Super Target. However, Target discount stores were also incorporated into the general merchandize stores using the expanded partnership that began in 2003 (Target Corporation, 2017). The format operates in several locations that include Target Photo, Target Optical, and Target Pharmacy departments. However, the Target Pharmacy departments were purchased by the CVS Health in 2015. It now operates as stores-within-stores under Minute Clinic and CVS Pharmacy mastheads. Target also has a grocery store that operates under the prototype ‘PFresh” that was started in 2006 (Target Corporation, 2017). The introduction has resulted in an expanded grocery selection among general merchandize locations by approximately 200 percent. The offering for the Target branding are, however, more limited compared to the Super Target format. The expansion of the brand to include fresh groceries has necessitated for the creation of an elaborate supply
chain as the products are required fresh by the customers.