Evaluating SCM and Sustainability Practices at Target Australia

This report provides a detailed analysis of Target Australia's supply chain management (SCM) and sustainability practices. It begins with a descriptive profile of the company, including its industry classification and core business activities. The report then discusses Target's current SCM practices, emphasizing its focus on operational efficiency and supplier relationships, followed by an examination of its sustainability management practices, including Corporate Social Responsibility (CSR) and Total Quality Management. A critical appraisal assesses the alignment between SCM and sustainability, highlighting both matches and gaps, such as the need for improved waste disposal knowledge among customers. The report concludes with recommendations for enhancing the integration of sustainability into Target's supply chain, including employee training, community engagement, and the adoption of advanced SCM technologies to improve efficiency and environmental stewardship. Desklib provides access to this and other solved assignments for students.

Case Study 1
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Case Study 2
Table of Contents
Introduction................................................................................................................................3
Sustainability Management Practices of the Organization........................................................5
Appraisal of the Extent of Perceived Matches...........................................................................6
Recommendations for match improvement...............................................................................8
List of References....................................................................................................................10

Case Study 3
Executive Summary
Target Company is department store locate in Australia and supported by a strong brand
heritage, The company sells varying products related to fashion and family household. It
operates a national network of over 300 stores and the digital aspect that has seen the
company adopt online business. The main focus is providing quality and achieving having a
good customer relationship, aspects that requires a clear understanding on the SCM and
sustainability management practices adopted in the organization. It is recommended that the
company to apprise a balance the two facets of management to effectively achieve its seven
pillars of success for both its current and future customers. Therefore, focusing in the
stewardship towards the physical environment and the community around the business will
boost its awareness and concern towards the social and environmental issues affecting the
industry.
Introduction
Target is known to be among one of the largest department chain stores in Australia operating
a network of more than 300 stores across the country. Its story started in 1926 when George
Lindsay and Alex McKenzie opened a retail store in Geelong, Victoria. The small retail store
has grown over the years changing owners and partnerships with its current owners, the
Wesfarmers. Target offers a wide array of products ranging from, clothing, electrical
appliances, decor, toys, games, and entertainment. The company was the best selection for
this assignment due to its unique supply chain model and sustainability model.

Case Study 4
Christopher (2016) argues that a company should strive to create superior value for their
customers and consumers by first managing their core process better than their rivals in the
industry. Target takes this into the account by taking advantage of the opportunities afforded
by the market and customers dynamics. In its 2017 annual report, the company explains how
it plans to streamline its operating models and improve financial disciplines. The company
recognizes the importance of maintaining a strong operational performance and deploying
new technologies by having a well-managed supply chain (Chan 2017). As the supplier
programme states that company should recognize and celebrate the achievements of their best
suppliers which to exemplify true partnerships continuous improvement and organizational
commitment. Therefore, we could see how Target encourages suppliers to work properly.
‘According to Supply & Demand Chain Executive contributor Gary Barraco, four important
elements need to be present to negate unfortunate situations within the supply chain visibility,
flexibility, collaboration, and control (Christopher 2016). These elements are to help manager
build and develop a steady system and look ahead for future challenges in the supply chain.
Other than that, supplier selection is one of the important steps which require multiple criteria
like reliability, willingness to share technologies and information, capacity and
communication. You will leverage technology and a culture of continual innovation to
optimize our supply chain network. The target being the large company that it is with
multiple stores across Australia, it is easy to understand why they should opt for a functional
supply chain to operate at optimum efficiency. They therefore have multiple suppliers for
different products to avoid looming problems such as out of order products or supply
interruption. Furthermore, they continually focus on improving operational productivity, cost
control as well as capital disciplines. As a part of the supply chain, the logistics management
is also a key element for efficiency. This enables coordination between its suppliers, chain
stores, and consumers. Firms usually have different goals in terms of profitability, growth

Case Study 5
and economic development. Aside from the attention the company gives to supply chain
management the company also align its strategies towards sustainability.
Sustainability Management Practices of the Organization
According to Chiu and Hsu (2017), sustainability is the act of surviving or enduring in an
environment for a long time. Therefore, sustainable management practices are focused on
incorporating the environmental, economic, and social factors in the organizational decision-
making with the aim of identifying and avoiding cost-associated decisions that may result in
unstable business practices. The effects are helping the organization in planning for consumer
expectation changes and capitalize on aspects that will ensure the preservation of available
resources for future use. For Target Ltd, adopting sustainable management practices is
profitable to the organization as it can comfortably grow and adapt to the changing market
hence giving the organization a competitive advantage. Therefore, it has helped the
organization to develop a socially responsible business focused on reducing negative
environmental impacts and while increasing its positive influence. Therefore, the
sustainability management practices developed and adopted by the organization include;
• Corporate Social Responsibility (CSR) - Adopting this strategy gives the organization
the opportunity to contribute towards the environment, local community, and the
nation at large. In the current business environment, Paulraj, Chen, and Blome (2017)
denotes that everyone is concerned with handling the pressure and chasing targets at
the workplace, an aspect that makes organizations to forget the right of the society.
To ensure sustainable performance, the organization works in line with the objectives
of the local community by engaging in different aspects such as educating the society
to promote a positive working relationship.

Case Study 6
• Total Quality Management- The practice help in ensuring the organization meets the
requirements of the customers with the aim of improving customer loyalty on the
services they provide in the Australian market and beyond. According to Christopher
(2016), the quality of a product is measured in terms of its reliability, sustainability,
and performance. Therefore, the sustainability of the quality of a product is a
parameter that differentiates the company from its competitors. Target Company
hence uses different management tools to help in designing and creating
• Site Assessment- This is a sustainability management strategy that is focused on the
evaluating the property of the organization regarding management challenges and the
landscape. It helps in developing baseline information for future measurements of the
organizational landscape.
Appraisal of the Extent of Perceived Matches
Vitols and Kluge (2017) denotes that since Target Australia’s activities involve using natural
resources among others, environmental issues become an important matter when evaluating
the matches and gaps in the SCM and sustainability practices. In this case, sustainable supply
chain management is included in the context. As per the Sustainable Supply Chain
Foundation’s definition (SSCF), sustainable Supply chain management involves cooperating
practical practices from product design to development, to material selection, manufacturing,
packaging, transportation, warehousing, distribution, consumption to disposal. All supply
chain can be optimized using sustainable practices (Belvedere & Grando 2017, p. 9).
Sustainability in the supply chain includes some different priorities such as environmental
stewardship, conservation of resources, financial savings and social responsibility.

Case Study 7
SCM involves the organization and management of all activities in sourcing and
procurement, conversion, and logistics activities. It also includes the collaboration with
channel groups such as suppliers and customers (Sroufe 2017). Emphasis on the supply chain
is a step toward a more comprehensive adoption and improvement of sustainability because
supply chain considers the product from initial processing of raw materials to the distribution
to the customers. The application of sustainable supply chain has increased, and therefore,
Target Australia must also integrate sustainability issues into the aspects of supply chain
management for achieving sustainability performance. SCM integrates various concepts such
as of environment or green SCM, which Target needs seek and to minimize negative
environmental effects in their supply chains. Another match is the consideration of social
matters in their supply chain that requires the staffs to be given a decent working conditions
as well as making sure that products sourced and distributed ethically to the clients along the
supply chain. Similarly, there is also an economic concept of SCM that may involve the
purchase of other products or sourcing services from local players to support regional
economic regeneration for sustainability.
Performance refers to the level of fulfilling the requirement of a task, and it is measured
regarding outcomes. Again, it can be referred to as the ability of an individual perform to
obtain or achieve the desired outcomes. For Target Australia, the main performance is
dealing with supply chain business to enhance the issues of transportation, repackaging,
quality and timely delivery of goods in a manner that coincides or meets the sustainability
practices.
The need to involve sustainability management practices into the supply chain is important;
however, the looming gaps seem to be an obstacle to the Target as a player in the Supply
Chain sector. For Target Australia, the main purpose is to make maximum profit and the need

Case Study 8
to remain relevant in the household distribution and sales business. There are several
obstacles in implementing the sustainable management practices. They include lack of proper
knowledge on waste disposal by the Target’s customers, lack of resources needed to address
issues concerning environmental management among much more. Incorporating sustainable
management practices into the supply chain is an essential organizational philosophy to
obtain profit and market share goals through reducing environmental risks and effects while
raising the ecological efficiency of the businesses.
Recommendations for match improvement
As a department store supported by a strong brand heritage, Target Company the business
sells varying products for the family. Therefore, operating an international network of over
300 stores and the digital aspect that has seen the company adopt online business, the
business is focused not only on providing quality but also focuses on having a good customer
relationship. As a result, it is essential for the company to appraise a balance between its
supply chain management practices as well as the sustainability management. The company
is focused on seven pillars of success for both its current and future customers. These include
ensuring quality and product safety, investing in communities, minimizing wastes, ensuring a
safe working environment for its customers and workers, ethical sourcing of services and
products, and efficient use of natural resources.
In achieving these goals and addressing the identified gaps between the SCM and the
sustainability practices, there is a need for the organization to conduct awareness for its
employees in the importance of adopting effective environmental stewardship. With a focus
to minimize waste, the training should also be extended to the local community with the aim
of helping them to understand the importance of effective use of natural resources even in the

Case Study 9
manufacture, use, or disposal of household materials. In other words, aspects such as product
guidelines should also have a clear indication of the best strategies for disposing of wastes.
Secondly, the focus should be given to the how the supply chain management can be
improved. In most cases, customers are motivated by quality and timely delivery of products.
With technology transforming the global business industry, the traditional process of
monitoring inventories seems out-dated as it takes more time. Therefore, the company can
adopt newer versions of service delivery such as the use of SCM functionality features, an
automated purchasing method. The result is that the SCM can be programmed to place orders
automatically with the target vendors in case of a drop of the inventory levels. Such
automatic purchasing system will give the employees the chance to concentrate on other vital
duties while SCM service is in progress.
Conclusion
With a focus on the environment, it is recommended that the organization should focus on
five major environmental priorities. These components should form the focal points for
effective sustainability management practices not only to improve its performance but also
have an outstanding image on the brand it offers to the customers. Failure of the business to
adopt such practices can result into a catastrophic impact on the business viability as it is
currently difficult to succeed in the current business world without a clear understanding of
the repercussions of business developments and realities.

Case Study 10
List of References
Belvedere, V & Grando, A. 2017. Sustainable operations and supply chain management.
Chichester, John Wiley & Sons Ltd.
Chen, Cc 2017, 'Supply Chain Strategies and Carbon Intensity: The Roles of Process
Leanness, Diversification Strategy, and Outsourcing', Journal Of Business Ethics, 143, 3, pp.
603-620, Education Full Text (H.W. Wilson), EBSCOhost, viewed 21 April 2018.
Chiu, M, & Hsu, C 2017, 'Investigating the Influential Factors of Sustainable Supply Chain
Management, Using Two Asian Countries as Examples', Sustainable Development, 25, 6, pp.
559-579, GreenFILE, EBSCOhost, viewed 21 April 2018.
Christopher, M 2016, Total Quality Management, New York: FT Publishing International,
eBook Collection (EBSCOhost), EBSCOhost, viewed 21 April 2018.
Paulraj, A, Chen, I & Blome, C 2017, 'Motives and Performance Outcomes of Sustainable
Supply Chain Management Practices: A Multi-theoretical Perspective', Journal Of Business
Ethics, 145, 2, pp. 239-258, Education Full Text (H.W. Wilson), EBSCOhost, viewed 21
April 2018.
Sroufe, R. 2017. Developing Sustainable Supply Chains To Drive Value: Management Issues,
Insights, Concepts,... And Tools. [S.L.], Business Expert Press.
Vitols, S, & Kluge, N. 2011. The Sustainable Company: A New Approach To Corporate
Governance. Brussels, European Trade Union Institute.