Logistic Management: Target Retail Business

1. Introduction

1.1 Introduction

Logistics management is one of the critical components that determine the operational efficiency and satisfaction of customers in any retail organization. Target Corporation is one of the biggest retailers in the United States, with an expansive network of over 1,963 stores across the country (Target Corporate, 2025). The target corporation’s logistics strategy encompasses a system of purchase, transportation, inventories, warehousing, distribution, and customer service for the company (Berman, 2023).The respective company has invested in new changes across all its supply chains, including up-to-date applications of technologies of Radio-Frequency Identification (RFID) for easy tracking of all its inventories and efficient warehouses strategically located at different points throughout the United States.

1.2 Current Target’s Logistic Management Strategy and challenges faced

A key feature of Target's logistics strategy is the "Stores-as-Hubs" model, in which its physical retail locations act as fulfillment centers for online orders (Target, 2025). This enables faster delivery and lower shipping costs and supports a seamless Omni channel experience for customers.Target faces several disruptions in the supply chain and high levels of competition coming from e-commerce firms. Therefore, the SWOT analysis of the logistics system at Target will reveal insights into its existing strengths and areas that need enhancement. Additionally, applying a Balanced Scorecard methodology would provide an organizational framework for logistics performance improvement as the operational actions become aligned with strategic goals for the company.

2. Role and Significance of Logistics and Logistics Management

According to Adeniran et al. (2024),logistics management is one of the most important functions in the retail industry because it helps move goods from the suppliers to the consumers.Effective logistics management is significant for Target Retail which can assist in crucial operations including, transportation, warehousing, inventory management, and order fulfillment. Vaka (2024) states that proper logistics management helps retailers maintain the ideal level of inventory, minimize costs, and respond to customer demand. For Target Corporation efficient logistics is determined as one of the key factors in customer satisfaction due to the timely availability of products in a retail competitive environment. This productivity contributes to higher sales and helps increase customer loyalty. It becomes an advantage over others in the marketplace. Therefore, logistics and logistics management are important elements of both organizational success and national economic development. For retailers like Target Corporation, the smooth running of logistics operations contributes to better customer satisfaction and operation efficiency. For a nation, solid logistics infrastructure and management support national economic growth, trade facilitation, and competitiveness in the world.

3. SWOT Analysis of Target’s Logistics System

Target adopts Omni channel strategiesto handle their logistics operationsthat comes with strengths of an efficient distribution network and weaknesses which include limited reach, and data security issues. On the other hand, opportunities include the expansion of e-commerce as well as sustainability, and mitigating threats like intense competition along with supply chain disruptions.

3.1 Strengths of Target Corporation

• Efficient Distribution Network: Target has a strong supply chain with more than 59 supply chain facilities throughout 25 states in the US.Therefore, along with 60,000 team membersTarget can provide effective inventory management and timely delivery of products to stores and customers at their retail stores (Target About Us, 2025).
• Omni channel Fulfillment: Target integrates digital platforms with the physical stores to enhance services like same-day delivery through Shipt, drive-up options, and in-store pickup for enhanced customer convenience and satisfaction(Target About Us, 2025).
• Private Brands: Exclusive lines like Cat & Jack and Goodfellow& Co. have helped drive up Target's market share by focusing on quality for most consumers(Target About Us, 2025).

3.2 Weaknessesof Target Corporation

• Limited income source: BBC News (2023) reports a sales drop of 5% to US retail giant, Target due to conflict over Pride Month offering. Target operates primarily within the United States, limiting its international market share in comparison to more globalized competitors.
• Data Security Concerns: Brooks (2024) reports an incident wherein due to Target’s mishandling of data security measures resulted in 11 gigabytes of data leak. The previous incidents raise issues regarding data security measures that Target has implemented and ultimately impact on brand loyalty of customers.

3.3 Opportunities to Target Corporation

• E-commerce Growth: Online shopping is rapidly increasing in popularity (Mouratidis&Papagiannakis, 2021).This allows Target to upgrade its digital platforms, user experience, and market shares in the e-commerce industry.
• Small-Format Stores: Target penetrates new markets by opening small-format stores in urban areas and college campuses. The company serves localized demand, and brand presence is increased in the most densely populated regions.
• Sustainability Initiatives: Target may appeal to more environment-conscious consumers by promoting environmentally friendly practices and increasing its portfolio of sustainable products, thus enhancing its brand image (Adama&Okeke, 2024).

3.4 Threats to Target Corporation

• High Competition: Target is confronted with high competition from both physical retailers such as Walmart and online retailers like Amazon, which will affect market share and profitability.
• Supply Chain Disruptions: Global events like the COVID-19 pandemic highlighted the vulnerabilities of supply chains that are prone to threats in the availability of products and delivery time(Mouratidis&Papagiannakis, 2021).
• Consumer Preference Change: Target must adapt to changing consumer behavior, such as rapidly changing preferences from purchasing at a physical store to online and desire for customized experiences(Adama&Okeke, 2024).

4. Balanced scorecard for improving logistics performance

4.1 Analyzing Target Retail’s Performance through Balanced Scorecard

A Balanced Scorecard framework can greatly improve logistics performance by systematizing the way operational activities are executed within the perspective of strategic objectives (Dwivedi et al., 2021). The scorecardis applied to Target Corporations that consider four perspectives in measuring the performance of the retail business including; Financial, Customer, Internal Processes, and Learning & Growth perspectives;

By adopting the Balanced Scorecard approach, organizations can gain a comprehensive view of their logistics performance, facilitating informed decision-making and strategic improvements that lead to enhanced efficiency, customer satisfaction, and profitability.

4.2 Interrelationship of Supply-side and demand-side logistics

Supply-side logistics and demand-side logistics are essential parts of the supply chain for any firm (Wang & Song, 2023). They handle two different product' flows concerning the satisfaction level of customers.Supply-side logistics also known as Inbound Logistics is procurement and transportation from suppliers to warehouses or manufacturing places. On the other hand, demand-side logistics, or outbound logistics, is responsible for distributing the finished products of the company to the end customers or retailers.

The interrelationship between Supply-Side and Demand-Side Logistics

To design an efficient supply chain that responds positively to market needs, the sides have to integrate demand-side and supply-side logistics.

• Sharing Information: Real-time exchange of information among the purchase and sales departments improves demand prediction and stockholding.
• Coordinated planning: If the production is aligned with the demand by customers, then optimum levels of inventory are ensured, and the risks of overproduction or even stock outs are minimized.
• Flexibility and responsiveness: An efficiently integrated logistics system responds promptly to changing customer requirements or supply interruptions by ensuring a continuation of the service.

4.3 Coordinating logistics activities for integrated logistics functions

Coordination of all logistics activities is very essential and forms the platform for enhancing effectiveness, cost control, and quality customer service delivery (Dong, 2023). Integrated logistics unifies numerous supply chain activities that include purchase, transportation, warehousing, and distribution among others together in one whole system.

Key Strategies for Achieving Integrated Logistics at Target Retail Corporation;

• Cross-Docking: In cross-docking, goods are transferred directly from inbound transportation modes to outbound transportation modes without stopping over in intermediate storage (Mukherjee et al., 2023). By implementing cross-docking at Target Corporations it will assist in minimizing warehousing time, thereby reducing inventory holding costs and speeding up product delivery to customers.
• Just-in-Time (JIT) Inventory Management: The objective of JIT is to bring material orders from suppliers directly in line with the production schedules (Balkhi, Alshahrani& Khan, 2022). Implementation of JIT approaches at Target Corporations, will help the retail business to reduce inventory levels and their carrying costs while making materials and products available precisely when needed to improve efficiency.
• Real-Time Tracking Systems: The use of technologies like GPS and RFID allows for real-time tracking of goods throughout the supply chain (Tan & Sidhu, 2022). The strategic implementation of a real-time tracking system at Target Corporation allows the retail firmto formulate proactive decision-making, improves security, and ensures timely deliveries, thus making the logistics operation more responsive.

Benefits of Integrated Logistics;

By developing the integrated logistics function, coordination of logistics activities would be achieved using strategies like cross-docking, JIT inventory management, real-time tracking, warehouse management, and IT integration, among others. This is then associated with more significant performance, greater savings, and excellent customer satisfaction- all elements that make an organization prosper in the dynamism of its market environment.

• Reduced Costs: Integrated logistics eliminates unnecessary costs by optimizing resource use and reducing holding inventory costs.
• Better Customer Satisfaction: Integrated logistics ensures timely and accurate delivery, which enhances the customer experience and leads to loyalty.
• Increased Flexibility: An integrated system can respond quickly to changes in the market and customer needs, thus providing a competitive edge.

4.4 Feasible Solutions for addressing issues in logistics

The feasible solutions will help Target Corporation maintain the satisfaction of the clients and provide operational excellence in logistics. The possible solutions to common challenges in logistics concerning customer service are as follows;

• Establish Real-Time Tracking Systems: Real-time visibility of shipments helps create transparency and trust among customers (Udeh et al., 2024). Advanced tracking technologies enable clients to monitor their deliveries, and track orders to keep them informed in real-time of any delays. This proactivity in communication helps to eliminate uncertainty and creates an enhanced customer experience.
• Improve Communication Channels: Establish clear and consistent pathways of communicationto assist in improving customer satisfaction (Shi, 2022). The approach will provide several contact options: phone support, email, and live chat enhancing customer satisfaction at Target corporations. It is always important to ensure that customers can reach the support teams easily. Provide regular updates about shipment status, potential delays, and issues being resolved.
• Optimize Last-Mile Delivery: Last-mile delivery is the final leg of delivery, and it has a huge impact on customer satisfaction (Assis et al., 2022). Efficient routing, local distribution centers, and alternative delivery methods such as parcel lockers or partnerships with local couriers can help improve delivery speed and reliability.
• Provide Training to Workers: Trained staff are more capable of responding to customer inquiries and solving problems quickly. Customer service skills, product knowledge, and problem-solving skills through regular training programs will lead to effective interaction and greater customer satisfaction.

5. Conclusion and Recommendations

5.1 Conclusion

The key role logistics management plays in Target Corporation is that it enables seamless operations in the procurement, transportation, warehousing, inventory management, and customer service of the company. Based on the SWOT analysis, Target has a lot of strengths in its efficient distribution network and Omni channel capabilities, while the areas of improvement include mitigating supply chain disruptions and price perception challenges. Some of the essential solutions include real-time tracking, better customer communication, and improved last-mile delivery to enhance logistics customer service. The integration of supply-side and demand-side logistics enhances operational efficiency, while a Balanced Scorecard would offer a strategic approach to improvement in logistics performance.

5.2 Recommendations

To maintain and improve its logistics performance, Target Corporation should focus on the following recommendations;

• Technological Integration: Invest in the latest technologies, such as AI and machine learning, to improve demand forecasting, inventory management, and real-time shipment tracking.
• Collaboration: Strengthen collaboration with suppliers, logistics partners, and internal teams to better synchronize the supply chain.
• Emphasis on Sustainability: Make transportation, packaging, and warehousing processes eco-friendly in line with consumers' evolving preferences and ever-changing regulatory standards.
• Agility: Insert agility in the logistics process to adapt to changes in the market as well as offer value to customers.
• Monitoring of Improvements: The Balanced Scorecard should be used to track logistics performance, pinpoint bottlenecks, and execute correcting measures.