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

Industry

Retail and Consumer Goods

Solution

Solution

Program management and leadership

Service line

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

Meet our team

Luke Ritchie

Luke brings more than 25 years of retail experience across a wide variety of consulting and line-management roles within large organisations and SMEs. Luke is a change agent who is well-practiced at leading and implementing large change programs, with his recent client engagements including David Jones, Super Retail Group, Baby Bunting, Target Australia and The Reject Shop.

Luke Ritchie

Luke Ritchie

  • Partner & National Head of Retail & Consumer Products

Jamie Downs

Jamie creates sustainable value for his clients that ensures their success and our ongoing retention. The GNC Group business model is built on authentic leadership; 'can-do' people; on-site 'in the trench' client partnering and an unwavering passion to exceed our clients expectations. Jamie is a trusted retail adviser with over 25 years ‘hands on’ retail experience across 4 continents, in consulting and line roles across Finance, Strategy, Operations, Supply Chain, Merchandise and Global Sourcing.

Jamie Downs

Jamie Downs

  • Partner & National Head of Management Consulting

Chris Wong

Chris is a Senior Executive with over 20 years’ experience in Corporate Finance and Strategic Consulting. He has worked with top tier professional services firms in Investment Banking and Corporate Advisory. He now works as a specialist finance and transformation consultant helping clients of all sizes and across industries to successfully execute their strategic plans.

Chris Wong

Chris Wong

  • Partner - Management Consulting

Wi Liem Chua

Wi Liem is a commercially driven retail professional with ten years’ experience in the supermarket and apparel retail industry. He has held leadership roles and worked with senior leadership teams to develop new strategy, optimise, redesign and transform key business areas across the value chain including Strategy, Buying, Planning, Supply Chain, Store Operations, Finance and People.

Wi Liem Chua

Wi Liem Chua

  • Partner - Management Consulting