Executive Briefings

Retailer Targets Complete Revamp of Its Grocery Supply Chain

Target has been revamping its grocery business and is seriously considering enlisting a third party to help solve supply chain issues.

Retailer Targets Complete Revamp of Its Grocery Supply Chain

"There is an opportunity to use some partners who may be able to do things a little bit better," COO John Mulligan told Reuters. Target's supply chain, having expanded over time, is now a patchwork system and not fully reliable. "I said to my team this looks like Frankenstein. We have made this thing out of a bunch of parts."

Target has increased its assortment of fresh foods and recently put suppliers on notice that it would be paring back SKUs of packaged goods to increase its assortment of healthy items. But the retailer's supply chain is not up to the task of getting fresher products to stores, at least in some parts of the country.
Supply chain issues have plagued Target at various points in its history and were partially to blame for the retailers failed expansion into Canada. More recently there have been reports of empty shelves, specifically in grocery.

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"There is an opportunity to use some partners who may be able to do things a little bit better," COO John Mulligan told Reuters. Target's supply chain, having expanded over time, is now a patchwork system and not fully reliable. "I said to my team this looks like Frankenstein. We have made this thing out of a bunch of parts."

Target has increased its assortment of fresh foods and recently put suppliers on notice that it would be paring back SKUs of packaged goods to increase its assortment of healthy items. But the retailer's supply chain is not up to the task of getting fresher products to stores, at least in some parts of the country.
Supply chain issues have plagued Target at various points in its history and were partially to blame for the retailers failed expansion into Canada. More recently there have been reports of empty shelves, specifically in grocery.

Read Full Article

Retailer Targets Complete Revamp of Its Grocery Supply Chain