Optimizing Procurement and Inventory Management at Target

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Recommended: Assignment on procurement

Procurement Target’s main focus is to develop and deliver products as well as service that exceeds its consumers’ expectations. The company offer’s real cost saving and decreased operating cost, allowing them to make the processes easy and increasing the abilities in procurement to free up resources so they can focus on making along with maintaining competitiveness on advantage. The use of EDI software within Target makes procurement simplified and requires all suppliers to use EDI for procurement process.
Inventory Management
Target has continuously developed a close and positive relationship with its suppliers, they plan their inventory levels with care to reach all seasonal …show more content…

Target has a very effective and distinctive supply chain. Their existing logistics along with other functional adequately show the effective view of supply chain and its management. Target has achieved great success by combining discipline and innovation, financial strength and strategic planning, balancing its investment in long-term growth with its ability to deliver near-term earnings (Target Corporation, 2012). Target continues to leverage its trend leadership and differentiated merchandising to offer compelling value to its customers. The company continues to focus on product availability, great service, planning, processing, transportation etc. Target has been able to do this through its ability to effectively manage its supply chain and staying …show more content…

It is important to identify the customer facing processes and use the demand chain with the supply chain in order to focus on the entire value chain for both the customer and the stakeholder (Walters & Rainbird, 2007). Understanding your customers and markets can help you determine where to look in the supply chain for efficiencies and opportunities and areas where you can improve. Therefore, the focus is primarily on customer’s product demands and service, quality, price competitive, while increasing performance and adding value. Target uses EDI software to make procurement easier and requires all suppliers to use EDI for the procurement process allowing them to ensure customer satisfaction by having state of the art technology that’s fast and

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