...TARGET COSTING FOR SUPPLY CHAIN MANAGEMENT Target Costing is a process to make sure that a product launched with particular functions, quality and price can be made at a cost that would generate a reasonable amount of profit. It is different from the other costing approaches as it is a part of the company’s product development and introduction process. Therefore target costing requires all the information regarding the company’s competitive, product and supply chain strategies. After getting this information, as the company shifts from product strategy phase and introduction process through product concept, all the target costing activities are performed. During the early stages of target costing, the company through the market research statistics, anticipates the price that the consumers are going to pay for their product, by taking its various functions, quality and the substitutes offered by the remaining firms. Depending on this price, the company deducts the profit margin in order to meet the demands of the stakeholders and also to invest for the research and development of new products. The target cost is the maximum allowable cost that the company should incur manufacturing, distributing, servicing and disposing the product. Target costing enables the company to put efforts in order to reach the requirements of the customers. It enables to meet or even to exceed the quality and functionality so that product competitiveness can be attained. Target costing cannot be used...
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...Target’s Supply Chain Unit 2 Assignment GB570 Managing the Value Chain Dr. Rita Gunzelman Kaplan University December 12, 2011 Target’s Supply Chain The purpose of this paper is to show evidence of cohesive knowledge of the supply chain and how it works by the exploration of Target Corporation’s supply chain. Target, one of the nations largest retail chains, first opened in 1962 in Minnesota as key leadership were looking for new ways to move from a family-run (The Dayton Family) department store to a mass market national chain strengthening customer relationships by appealing to value-oriented shoppers in quest of a higher-quality experience. Today, Target operates approximately 1750 stores (including nearly 240 SuperTarget stores) in 49 states with Gregg Steinhafel as their CEO. We will review the effectiveness of Target’s supply chain and analyze if it meets the necessary expectations of their demand chain. (Target, 2011) Overview of Target’s Supply Chain Target, the 2nd largest discount-retailer in the U.S. has focused on their slogan, “Expect More Pay Less” and strategizes to increase optimal value and growth for global networking, an exclusive upscale and trendy product line, and value added service that creates a distinctive niche throughout the world. This multi-billion dollar company set out to change how consumers thought about discount shopping by offering a more upscale shopping experience. In 1998, Target purchased Associated Merchandising...
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...Verne, California Target Supply Chain Management Security A Paper Submitted in Partial Fulfillment Of the Requirements for BUS577: Supply Chain Security Team Member: Xiaomeng Xu Lusi Peng Xinyao Lu Jieyi Cai Hailin Yan College of Business and Public Management Department of Master of Business Administration 2016/5/20 Introduction Target Corporation is an upscale discount retailer that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and guest-friendly stores. Target opened the first store in 1962 in the Minneapolis suburb of Roseville, Minnesota, and now is the second largest retailer in the United States right after Wal-Mart. In fiscal 2015, the company’s revenue grew by $1.3 billion, reflecting a 1.3% increase in comparable sales and the contribution from new stores. Today, Target remains committed to providing a one-stop shopping experience for customers by delivering differentiated merchandise and outstanding value with its Expect More, Pay Less brand promise. Target constantly fulfils the needs and fuels the potential of the customers by delivering outstanding value, continuous innovation and an exceptional guest experience. As of 2015, Target operates 1,793 locations and 38 distribution centers with 341,000 team members throughout the United States and worldwide. The retail format include the discount store Target, the hypermarket SuperTarget...
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...FEDEX TOWARDS PALM OIL INDUSTRY Core competency identified to be implemented in palm oil industry is Fedex supply chain management and its tracking device CORE COMPETENCY its infrastructure which is hard to imitate- a world wide network of planes trucks ships and hubs need a huge amount of capital. its dedication to innovation and embracing new technologies. – eg, them being the first logistic company to embrace the www as a tool to reach out to customers {attitude}. Like their wireless solution for faster shipping time, allowing customers to track their packages while travelling etc. Plus supply chain management and tracking capabilities. TARGET: GREEN INDUSTRY Solar+ biodiesel = substitutes for fossil burning Why green energy industry? In this presentation we will be focusing on 2 alternatives. Solar and bio-diesel. In support to the relevance of green energy, according to Eye For Transport, surveying 250 north American supply chain executives. The green transportation &logistics report revealed financial(ROI) and public relations are the driving force. 75% of a company‟s carbon print come from logistic and transportation. 6% respondents designate green issues as unimportant While 69% agree that green issues are important to their transport and logistics processes 9% find it as their No.1 priority. Total of 78% find relevance towards green transportation and logistics. Now. It is found greening their T&L process is fundamentally...
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...achieve world-class supply chain efficiencies targeted primarily at driving down costs. Wal-Mart isn’t just the largest retailer in the world, over the past several years it has popped in and out of the top spot on the Fortune 500 list—meaning that the firm has had revenues greater than any firm in the United States. Wal-Mart is so big that in three months it sells more than a whole year’s worth of sales at number two U.S. retailer, Home Depot.[1] At that size, it’s clear that Wal-Mart’s key source of competitive advantage is scale. But firms don’t turn into giants overnight. Wal-Mart grew in large part by leveraging information systems to an extent never before seen in the retail industry. Technology tightly coordinates the Wal-Mart value chain from tip to tail, while these systems also deliver a mineable data asset that’s unmatched in U.S. retail. To get a sense of the firm’s overall efficiencies, at the end of the prior decade a McKinsey study found that Wal-Mart was responsible for some 12 percent of the productivity gains in the entire U.S. economy.[2] The firm’s capacity as a systems innovator is so respected that many senior Wal-Mart IT executives have been snatched up for top roles at Dell, HP, Amazon, and Microsoft. And lest one think that innovation is the province of only those located in the technology hubs of Silicon Valley, Boston, and Seattle, remember that Wal-Mart is headquartered in Bentonville, Arkansas. A Data-Driven Value Chain The Wal-Mart efficiency...
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...Our E-Commerce Initiative Eminentleather.com is the online retail store which will be initiated with its existing physical retail store. Eminent Leather proudly presents itself as one of the leading innovative and creative manufacturers of premium quality leather products. Through reflecting the latest trend and fashion, we have built our distinctive image among all the fashion conscious men and women of today. The most competitive price and optimum perfection of our products make us superior to the others operating in this sphere. Apart from our own creativity, we also design as per your specification. Eminent Leather is a leading specialty retailer of quality accessories and outerwear. Currently operating under two formats, we offer fashion and value for both men and women. Categories include handbags, briefcases and travel items. Our e-commerce site offers an extension of our store experience and is intended to increase brand awareness. Unique Features of the Business: Bricks-and-clicks is a business model by which Eminent Leather will integrate both offline (bricks) and online (clicks) presences. In our e-commerce initiative we have some unique features like- ubiquity, global reach, richness, interactivity, information density, personalization, and customization. Those unique features will bring a distinguish business opportunity to attract more consumers and ultimately sell the product to them. The features and how they will increase the business revenue are described...
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...decade. In the last 10 years, Wal-Mart has achieved strong and constant growth in sales and net income. It has maintained the leading position in the U.S. discount retail industry and has become the largest retailer in the world. With the maturity of the industry, coupled with the intense competition from rivalry companies, maintaining the current level of high performance becomes very challenging. The Porter’s Five Forces analysis reveals that the competition among rivals is the driving force of the industry, in which price is the most critical factor. The value chain analysis and resource based view analysis show that Wal-Mart has been very successful in implementing the strategy as the low-cost leader by inculcating cost efficiency in its corporate culture, management style, and operations. It has been the pioneer in adopting cutting edge technology to streamline its supply chain, and to understand and respond timely to customer demand. Wal-Mart has developed many strengths that help guard its leading position and open door to many opportunities for expanding the business. However, it also faces threats from growing too big and in many areas, which makes it vulnerable to losing control, weakened cooperation among stores and regions, and competition in multiple fronts. Wal-Mart should be caution in its growth strategy, especially in the expansion of its international presence. Although its financial strength, management skills, and operation efficiency...
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...imaginative E-Business or an E-Commerce start-up here in HCMC. Table of Contents 1. Executive summary 3 2. Introduction 4 3. Company concept 4 Propositional values and competitive advantages 4 Business model work 4 Generating money 5 Target market and target audiences on the internet 5 4. Supply chain 6 5. Domain name 7 6. Generating visitors 7 7. Conclusion 8 8. Appendix 9 1. Executive summary This individual assignment was commissioned to create either an imaginative E-Business or an E-Commerce start-up here in Ho Chi Minh City. Specifically, it’s about ngonngon.com – online webpage supports to order a lunch. The assignment analyses and identifies propositional value and competitive advantages like professional delivery service within 30 minutes with flexible payment. There are different things that make ngonngon becomes special one. Besides using traditional webpage, we develop an application for smartphone of many operating systems to attract more people. This assignment defines which products and services that ngonngon offers and adds more value, who we are selling to, which segments. How does this E-Business work and generate money by advertising and describe our supply chain with diagram. Furthermore, we explain the reason why we choose this domain name ‘.com’ for ngonngon and their benefits with other. Finally, it’s about how will ngonngon.com ensure that people will visit the webpage by using some promotions from marketing strategy...
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...responsibility gradually rise in the past decades for corporate. Organizations use corporate social responsibility (CSR) to set up activities in order to achieve and respond these expectations. Jamali and Mirshak (2007) state that CSR approach helps to attract global attention and acquire a new resonance in the worldwide economy. However, Frankental (2001) claims “Do CSR is a public relations (PR) invention?” and company focus on promoting itself, getting an edge on its revivals rather than being ethic to protect the environment or maintain human welfare. Therefore, in this essay, author is going to discuss about the different between CSR as well as PR. Moreover, it will apply an example of IKEA to examine the effectiveness of its CSR in supply chain and analyze CSR as a business strategy to maintain the sustainability of business, financial control and risk management. Afterwards, author will highlight the limitations of CSR policy and finally provide some recommendations to improve the CSR strategy for corporates in order to maintain the sustainable resources and increase the brand value as well as profit. Definition of PR According to Clark (2000) points out that public relation (PR) as a communication field from public information to reputation management to relationship management, it is emphasized on the promoting corporate image or two-way communication to gather audience feedback....
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...A merger occurs when two companies pull their resources together and join as one. With any new acquisition changes will have to be made and they can either be beneficial to a respective industry or have adverse consequences. Kudler Foods is currently in the position to acquire a company which can have both positive and negative effects. In pursuing a vertical merger Kudler Foods will be in position where they will have an increased market share that places them in a position of reduced competition. Current consumers may not necessarily be attracted to this format, however, through new marketing tactics they can attract new consumers and target a broad demographic and also drive in more profits. If Kudler Foods proceeds with this merger it will allow this establishment to put in to play a new strategic direction. One of the benefits of using this strategic business method according to "More-For-Small Business.com" (2002), “it provides you with efficiencies related to economies of scale (from production, inventory, purchasing, sales and marketing, administration perspectives and more)” (vertical merger). Kudler Foods can benefit and exceed in this merger and in this industry by promoting competitive prices, they will be able to add a new dynamic to their stores by having trained personnel in new products and merchandise, and offer equipment to their employees that will allow them to conduct their work in an expedient manner therefore allowing savings and synergies. If Kudler...
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...Organizations such as Conventional Vertical, Horizontal and Multichannel Marketing Systems. It also, explains my target market needs at the here is also a brief description of how many channel members the company needs and why they need them. Overview of Distribution Channels The success of any business depends upon channel levels for getting products to market. First there is a direct channel and second there is an in-direct channel, both needs to exist for this to happen. The majority of companies can maintain their own using wholesalers and dealers. Which is a three channel system any more than three moves the company to in-direct marketers. This small Mexican food restaurant only requires the three channel system to operate with a positive cash flow. The distribution channels are for larger scale restaurants that distribute a Large amount of product. Products or services that are sold directly to the customers are direct channels which eliminate the middle man so to speak because there are no other companies that cut into the profit margin. When the business does not sell products directly to the consumer this is referred to as an in-direct channel. These methods of distribution have improved over the years due to technology and computers. Analyze Target Market’s Needs in Distribution Channels Our target market will need consistency in our food quality, always striving to improve our menu and customer service. The...
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...this on Linkedin Connect to Viewlocity on Linkedin Share via email Inbound freight takes center stage | Page 1 Snapshot Ford Motor Company Key challenge To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing. Solution Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first employed by Ford Materials Planning and Logistics Group to support the launch of the company’s best selling F-150 pickup. Results Fewer transport miles, better trailer utilization, reduced partial truck load (LTL) and air freight and the integration of returnables into the primary logistics plan allowed Ford to save 5% on their total inbound freight costs. Inbound freight takes center...
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...Indirect distribution, on the other hand, involves middlemen or intermediaries within the distribution channel. In the wood sector, for instance, the intermediaries would be the lumber manufacturer, the retailer and furniture maker. The larger the number of intermediaries within the distribution channel, the higher the price is prone to be for the ultimate customer (Richardson & Gosnay 2010). This is because of the value adding that crop up at each stride within the makeup. Moreover, there are other important types of distribution which include intensive, selective and exclusive distribution. The marketer can chose either of these depending on factors such as the manufacture capacity, pricing and promotion policies, the magnitude of the target market and the sum of product service obligatory to the end user. Intensive distribution intends to provide dissemination analysis of the market by exhausting all accessible channels. This type of distribution becomes applicable where customers have a wide range of suitable products to pick from. Supplementary, if a...
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...Ch10 Marketing Channels Supply Chinas and the Value Delivery Network Upstream: Supply raw materials, components, parts, information, finances, and expertise Downstream: Marketing channels towards customers, including wholesales and retailers, * Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value The Nature and Importance of Marketing Channels Marketing Channel (Distribution channel): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user * Affect every other marketing decision * Use imaginative distribution systems * Involve long-term commitment to other firms How Channel Members Add Value * Give up some control over how and to whom to sell products * But they create greater efficiency in making goods available to target markets by better contacts, experience, specialization and scale of operation * Intermediaries reduce the amount of work by both producers and consumers * Transform assortments of products made by producers...
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...Vision and approach Transformational solutions Environment Operating responsibly Responsible supply chain – Our approach We work with our suppliers to help them meet our ethical, health and safety, social and environmental standards and improve their performance through monitoring, assessments and engagement. We spend billions of pounds each year on equipment and services that enable us to operate our network and on products such as mobile phones, SIM cards and other devices that we sell to our customers. We demand high ethical, health and safety, social and environmental standards of all our suppliers. These are set out in our Code of Ethical Purchasing (http://vodafone.com/ content/dam/group/suppliers/downloads/VPC_Supplier Policy_A2_Code_of_ Ethical_Purchasing_(V3.0).pdf) and integrated from the initial qualification process all the way through to managing our suppliers’ performance. We conduct regular site assessments to ensure compliance with the Code and we work directly with our suppliers to help improve their sustainability performance. To target improvements further down the supply chain, we require our suppliers to demand similar standards of their own suppliers and check this through audits and performance management processes. We participate in industry initiatives to raise standards across the sector. Read on to find out more about our approach to this issue. Or go to the Performance section to read about our progress in 2014/15...
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