In an economic environment where many companies are scrambling to invest in technology, automation and transformation, the core challenge for any retail business is still stocking shelves and selling products. Although tech innovations are exciting and necessary for the modern supply chain, they only work when the business is otherwise solid. Putting goods where they need to be when they need to be there is about as basic as it gets; and yet, it’s not a simple task.
Target taps Walmart supply chain leader
Target has selected longtime Walmart executive, Jeff England, as its new chief global supply chain and logistics officer, with a clear directive to focus on in-stock reliability and execution. Organizations often recruit executives and other staff from competing companies, but this new hire is noteworthy because it's directly responding to chronic problem with inventory. “Target struggled to reliably stock its shelves in the wake of the pandemic after its sales skyrocketed, then subsided,” reports the Wall Street Journal. The retailer has had “13 consecutive quarters of weak or falling sales, in part because shoppers struggle to reliably find or order what they need.”
Fortunately, retailers recognize that a robust supply chain strategy is tied to “revenue growth, customer loyalty, and the in-store experience, especially as they work to avoid stock outs, improve fulfillment speed, and operate more efficiently amid a turbulent economic and geopolitical environment,” FreightWaves notes. Recently, Target has been attempting to increase product availability by opening a 1.2 million square-foot staging facility, which acts as a “buffer” between warehouse and retail stores, that supports six distribution centers in the Houston region. The creation of the receive center aims to “help store inventory from vendors across the country to ensure it can maintain in-stock levels while preventing stores and distribution centers from becoming overcrowded,” reports CNBC. The move also underscore’s Target’s goal to “remove complexity” in its supply chain facilities and improve its shopping experience, the WSJ notes; Target recently expanded its stores’ next-day delivery capability as well, to compete with online behemoths like Amazon.
During his tenure at Walmart, England is credited with improving inventory availability, reducing transportation costs and strengthening operational performance, FreightWaves continues. “Target is counting on England to improve the customer shopping experience amid a broader turnaround plan,” agrees Supply Chain Dive, because customers expect to visit the store and find items in stock at a price they can afford. Otherwise, the in-store shopping experience is greatly diminished. “Elevating that guest experience is one of our top priorities,” says Target CEO Michael Fiddelke in a press release.
For Target employees in its supply chain division, getting Certified in in Planning and Inventory Management (CPIM) would be the logical next step — and that applies to any supply chain professional. With ASCM’s CPIM credential, supply chain professionals can learn to predict with precision, plan with purpose and prioritize inventory for maximum profit.
Orchestrating the right supply chain strategy
For organizations managing supply chain strategy, it’s necessary to have a broader focus that’s proactive, not reactive. ASCM’s latest report, From Reactive to Orchestrated: Your Ascent to Supply Chain Maturity, reveals how organizations that advance planning maturity outperform their peers across inventory accuracy, service levels and financial performance. Backed by SCORmark benchmarking data and real-world case studies, the report shows where most supply chains fall short today and how focusing on five core planning pillars can unlock measurable ROI. Download our maturity report today and learn how industry leaders orchestrate supply chain strategy.
