Reuters reports that Target "is cracking down on suppliers as part of a multi-billion dollar overhaul to speed up its supply chain and better compete with rivals" such as Walmart and Amazon.
According to the story, Target "plans to tighten deadlines for deliveries to its warehouses, hike fines for late deliveries, and could institute penalties of up to $10,000 for inaccuracies in product information, according to a letter sent to suppliers and obtained by Reuters ... A tighter grip on its deliveries is seen as crucial to keeping shelves stocked, maximizing sales and controlling costs. Target has already announced an investment of over $5 billion in supply chain and technology infrastructure between 2015-2017."
Target COO John Mulligan tells Reuters that "these steps are a key part of becoming more reliable." The new guidelines are slated to go into affect within the next three months.
According to the story, Target "plans to tighten deadlines for deliveries to its warehouses, hike fines for late deliveries, and could institute penalties of up to $10,000 for inaccuracies in product information, according to a letter sent to suppliers and obtained by Reuters ... A tighter grip on its deliveries is seen as crucial to keeping shelves stocked, maximizing sales and controlling costs. Target has already announced an investment of over $5 billion in supply chain and technology infrastructure between 2015-2017."
Target COO John Mulligan tells Reuters that "these steps are a key part of becoming more reliable." The new guidelines are slated to go into affect within the next three months.
- KC's View:
-
I would imagine that a critical part of making tis work will be demonstrating to suppliers why - beyond the avoidance of fines and the growing of sales - this makes sense. Like greater connection to shoppers, a better understanding of their habits, and a greater opportunity to drive them to Target and to buy specific brands. Y'know, like Amazon does.
