TARGET CASE

Group 24Yu Kane Kok - Jason Lutowsky - Ahmad Khatib - Jeff Kortman

What is the Problem?Target’s current strategies are largely

directed towards expanding E-commerce & delivery services.

These departments are relatively new and require structural support from certain

departments for large growth.

Current Business Process

(Indiana)

Improvements Target is currently making

Virtual(E-Commerce) Physical

(Retail, Fulfillment,Distribution)

VIRTUAL PHYSICAL• Offering Free Holiday

Shipping Promo

• Offer Same Day Rush Delivery

• Introduced mobile app, Instacart/Cartwheel

• Curbside Pickup

• Introduction of Grocery Delivery

• Introduction of Organic Foods

1st Recommendation

Increase Demand of Omni-Channel Operations

ActionOptimize Virtual Operations

Optimize Physical Operations

• Provide Infrastructure

(TARGET.COM & EBAY) (RETAIL, FULFILLMENT & DISTRIBUTION CENTER)

Optimizing Virtually• Integrate Target.com & Target’s Ebay Store

• Provide a more consumer friendly platform

• Consider Google Partnership (Google Checkout)

TARGET.COM

TARGET’S STORE ON EBAY.COM

(Sterling)

Optimize Physical Operations

• Cross-Training employees/customer service representatives to handle multiple platforms

• Outsource/Purchase from Local Grocers

• Automate & Integrate Fulfillment Centers/Stores

INTEGRATING &AUTOMATINGOPERATIONS

• Aid in speeding up fulfillment operations for distribution centers & certain retail stores • Efficient space and inventory management catering towards individual fulfillment (online ordering).

(KIVA ROBOTS)

RECAPOptimizing Virtual

Operations

• Integrate Online Platforms

• Provide More Consumer Friendly website

• Consider Google Partnership (Google Checkout)

Optimize Physical Operations

• Cross Training employees to deal with multiple platforms

• Introduce local grocers

• Integrate/automate fulfillment & distribution

2nd Recommendation

Optimize Distribution System(FLEET MANAGEMENT)

How?Introduce a New Fuel Efficient Target

Branded Fleet

FUEL EFFICIENT TARGET BRANDED TRUCKS

• Plastic Chassis

• Reduce Transportation Costs

• Fuel Efficient

EFFECTS TOWARDS ENTIRE SUPPLY CHAIN

• Improve service level of delivery options

• Increase frequency & range of shipments

• Physical brand recognition

ConclusionFleet

Management

Virtual Commerce

Physical Commerce

(DELIVERY)

(FULFILLMENT)(INVENTORY & DISTRIBUTION)

(CUSTOMER SERVICE)

Conclusion• Strong Physical Presence/Foundation in markets

compared to online retailers

• Great potential for expansion in E-commerce • Large potential growth in delivery service level

• Essentially need to optimize current physical & virtual operations

QUESTIONS?

QUESTIONS?

THANK YOU!

•Group 24Yu Kane Kok - Jason Lutowsky - Ahmad Khatib - Jeff Kortman