Target supply chain issues have been a major pain point for consumers scouring the shelves for missing products. Recently the retailer announced weak growth in current quarter sales, blaming an “incredibly complex supply chain” for its troubles. So, with a restructuring plan in place, product information management (PIM) will play a crucial role in Target’s turnaround.
Suppliers, the pressure is on
In March, Target CEO Brian Cornell announced new requirements for suppliers. These rules aim to satisfy impatient consumer demand.
Target officially launched the new stringent guidelines on May 30th. Firstly, under the new rules, the Target supply chain will face tighter deadlines for deliveries to its warehouses.
Additionally, according to a letter sent to Target supply chain members, the retailer will hike fines on late shipments to 5 percent of the order cost. What’s more, the retailer warns it may “escalate charges of $5,000-$10,000” for suppliers who don’t provide complete and accurate product information.
In order to avoid such hefty fines, suppliers must now evaluate their PIM processes.
Market shift shines light on supply chain
In a recent company blog post, Target CEO Cornell noted, “Our focus in 2016 and beyond is on providing a seamless, reliable and enjoyable guest experience each and every time.”
Indeed, Target’s focus on supply chain is part of a larger market shift. With competition from giants like Amazon and Walmart, retailers are forced to scrutinize their supply chain processes.
Today’s effective product information management, or PIM, has moved beyond documenting basic data. As retailers ride the market shift, their product information must tell a story. It must provide the desired differentiated experience for customers.