Target 2003 Annual Report Download - page 15

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about where product is needed and automatically
labels cartons appropriately, accelerating the flow of
goods directly to our stores and eliminating what was
once a time-consuming, labor-intensive procedure.
ART is planned for rollout across our distribution
network in 2004.
• We’re also implementing a system for imported prod-
ucts that incorporates more timely sales and inventory
information into the merchandise allocation decision
and helps us allocate imported product to our stores
closer to the time of need.
• Another recently-launched system that is benefiting
both our store team members and our guests identifies
the specific aisle and shelf location for incoming mer-
chandise and improves our store discipline and our
stores’ speed of stocking new product.
• And finally, our Web-enabled supply chain tracking
system provides end-to-end visibility for merchandise
orders — from vendor booking to in-store receipt, facili-
tating faster action when there’s a break in the chain.
Rapid. Ready. Reliable.
Maintaining superior in-stock levels remains a top priority,
and our focus on this metric has resulted in two consecutive
years of record in-stock levels. The key contributors are:
• a keen focus on the in-stock positions of our 2,500
most-wanted items,
• improved in-stock levels for items advertised in our
weekly circulars,
• increased efficiencies in transitioning product from one
season to the next, and
• intensified efforts to deliver more reliability and fresh-
ness through improved in-stock performance of food
and consumables.
Making High-Speed Connections
Each year, the speed at which technology changes
seems to grow exponentially. At Target, we’re pursuing
new applications — evaluating emerging opportunities
and testing recent developments that may better serve
our guests.
Next on the horizon? We are intently focused on
increasing our level of directly-imported product — from
its year-end 2003 level representing about 15 percent of
our purchases to approximately double this amount over
the next few years. And though still early, Target is also
actively exploring Radio Frequency Identification (RFID)
and its potential benefits.
Through our commitment to technological and
operational advances, Target will continue to find ways
to delight our guests, retain our supply chain leadership
and build on our foundation of creating substantial
shareholder value.
Global Sourcing AMC is one of the world’s largest sourcing
organizations, with approximately 2,000 team members in over
50 countries. The AMC team contributes meaningfully to the quality
and efficiency of our sourcing activities and will play a larger role
moving forward as we shift a significant portion of our indirect
imports to direct purchases over the next three to five years.
Efficient Logistics Our supply chain continues to be an area of
major emphasis and substantial strategic investment. We are intently
focused on initiatives that increase productivity, improve in-stock
reliability and accelerate the speed of merchandise availability in our
stores. Through continuous innovation, investment in technology
and infrastructure and increased collaboration with our vendors,
we are working to further strengthen our competitive position.
SUPPLYCHAIN GROWTH 1998–2003
target.com
+44%
STORES SERVICED
+82%
CARTONS PROCESSED
+110%
RDC SQUARE FOOTAGE
Regional Distribution Centers (RDC)
Import Warehouses
’99’98 ’00 ’01 ’02 ’03
2
0
2
5
15
10
5