Compare and contrast the supply chain and distribution strategy for Target and Wal-Mart? How do they differ?
Be sure to mention how these differences impact their different product qualities and customer base. How does their strategy impact their forecasting requirements? Does Target and Wal-Mart's competitive strategy and their supply chain strategic have aligned goals and strategic fit? Why or why not?
Describe the bull-whip affect, the causes, and associated remedies.
Supply chain coordination requires each stage of the supply chain to share information and take into account the impact its actions have on other stages. All parties involved in getting a product to the customer play an important role in coordination - we must think of the entire supply chain - the suppliers, and their suppliers, and so on. When I read an article in the Wall Street Journal about Target and its anger over being a "Showroom," I thought of supply chain coordination. The article tells how Target has approached their suppliers asking for help in preventing "showrooming" - that is when customers come in the store to see an item in person and then order it online for a cheaper price.
Target wants their suppliers to create special products that can only be found in Target stores. Target would also like their suppliers to help them match their match rivals' prices.
Target is really asking for supply chain coordination!
How can Target get past "showrooming"? I have read they are opening smaller format stores in cities. How will this affect supply chain coordination with suppliers - give some examples of what suppliers will have to do to change the way they conduct business with Target.
How do you think Target's suppliers will react to Target's request to create special products and match rivals' prices? Will they work with Target?