Client challenge
Target Australia was facing stalling revenue and steadily-growing costs, with core functions not aligned and working together across the business.
The merchandise and supply chain functions were driving significant excess stock volume to stores.
Unprofitable stores were driving cost into the supply chain, whilst inefficient distribution centre and transport operations were driving cost.
The solution
The Grant Thornton team worked with the Target Australia leadership team to instigate an end-to-end process alignment and profitability improvement program which we called FACTORY-TO-CUSTOMER.
The program was designed to streamline operations from the source of a product throughout its journey into the customer’s hands. Program workstreams included Product Sourcing, Planning, Logistics, Online, Store Operations and IT Systems.
Grant Thornton co-designed and led the program, managing the program governance and commercial benefits tracking.
The outcome
The project resulted in:
- major cost reduction through the supply chain, through improved operations, removal of inefficient process and the incorporation of automation in two major distribution centres
- enhanced product margin through streamlined product planning and enhanced stock management driving out excess stock
- reduced cost base through consolidation of organisational structure around product forecasting and replenishment.
Fast facts
Industry
Retail and Consumer Goods
Solution
Program management and leadership
Service line
Consulting
‘The Grant Thornton team don’t just create Powerpoint advisory decks then leave. They stick around to actually deliver real value. Through the Factory-to-Customer program we generated tens of millions of dollars of value for Target.’
Andrew Myers, Chief Operations Officer, Target Australia
