Case Study - Improve product availability in Target retail stores
- Target Australia is the leading mid market discount department store, with sales of $3.5 billion in FY2014 and is part of the Wesfarmers group.
- Target Australia has 310 retail stores offering apparel, home décor, general merchandise, electrical, baby and beauty departments and over 100,000 SKU’s under management.
- Target Australia works with a multi-channel supply chain, offshore manufacturing and consolidation, pick and pack, local cross dock, goods on hanger, replenishment DC’s and direct to store.
- Underinvestment, leadership changes and Omni-channel impacts forced a dramatic strategy shift to take place to revers the performance slide.
- Implement systems, infrastructure and process to support the improved product availability in the retail outlets.
- Implement a process to support the new forecasting & replenishment and warehouse management systems.
- Model multiple sites capacity and select standard SKU’s to use for the replenishment channel.
- Implement business processes and reporting to support the new supply chain model.
- Successfully opened 3 replenishment DC’s with all new systems on time.
- Successful, on time delivery of new forecasting and replenishment (store) system Terra Data DCM.
- Implemented store scheduling process improving delivery frequency and product ability in stores.
- New facilities handled the peak Xmas period, which exceeded year 3 steady state volume projections.
- Designed new carton packaging standards leading to a $3 million saving per year.