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.

 

Business Problem

  • Implement systems, infrastructure and process to support the improved product availability in the retail outlets.

 

  

Consulting challenge

  • 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.

Results

  • 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.