Target—and many stores like it—would replenish shelf stock by sending cases of items on trucks to the stores. For example, if a store placed an order for shampoo, they would receive a case of shampoo. Naturally, not all the shampoo in a case is going to fit on a shelf, which means extra cases of items waiting to be shelved in back rooms. The new system, however, replenishes store supply on an individual basis. Employees can pick orders for multiple stores at a time without leaving their workstations, making the packing facility much more efficient. Their sales strategies, marketing efforts, and supply chain strategies are superior to many other department stores, keeping the business efficient and driving down costs for customers.
Read an interesting story on how TARGET predicted a child pregnancy before their parents knew it here.
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