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Vol 1, Issue 03, Aug 2019
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IT & Operations
Target entered Canada by acquiring a portion of Zellers Inc. (Zellers) in 2013 hoping to cash in on the demand it had in the US from Canadian cross border shoppers. However, Target was not able to establish a viable supply chain strategy in Canada due to an inefficient software system, which resulted in empty shelves at the stores. Target was forced to exit Canada in 2015. Analysts wondered what kind of precautions Target would take while entering a new country in future to avoid a repeat of the fiasco in Canada.
Target’s Exit from Canada: A Supply Chain Debacle
Mandakini Gogoi (Mandakini), founder of 7WEAVES Social Pvt Ltd. (7WEAVES), was thinking about how to refine the 7WEAVES model. She had co-founded the social venture along with her friend Uma Madhavan (Uma) and husband Rituraj Dewan (Rituraj) in June 2017. 7WEAVES was set up as an integrated textile-garment manufacturing facility in partnership with local communities dependent on the forests in Assam’s Loharghat Forest Range. It was a for-profit company focused on Eri silk. Would Mandakini be able to convince global fashion brands to buy their produce at a higher price that would help them support their model and also scale up?
7WEAVES: Slow Fashion
US-based coffee company and coffeehouse chain Starbucks Corporation (Starbucks) was popular for giving its customers a highly enjoyable experience through its hand crafted cold and hot beverages. Every customer who visited Starbucks in any of its stores in 76 countries enjoyed a similar experience of great coffee and service, thanks to its highly agile supply chain. In 2008, after a wave of rapid expansion, Starbucks witnessed a downturn in its fortunes. On examining the reasons, Starbucks found out that its existing supply chain was unable to cope with the massive development and needed an overhaul. Starbucks then went about eliminating the complex procurement, transportation, warehousing, and distribution systems and substituting it with highly responsive systems, which made Starbucks a company with the most admired and efficient supply chain in the world.
Supply Chain Transformation at Starbucks (A)
Supply Chain Transformation at Starbucks (B) deals with the supply chain transformation initiated in the company by Schultz with Peter D. Gibbons, Vice President of global supply chain operations. Gibbons started the process by studying the existing supply chains, and its ability to serve the stores. He also found that the supply chain was inadequate, poorly manned, expensive to run, and most of all, unable to provide customers what they wanted on time. The huge system that was spread across continents, included coffee, milk, other items like cups, furniture, machines, distribution centers, and warehouses. He planned to integrate all these into a global logistics system. The case describes the steps initiated to bring about changes in the system, the results, and the impact these changes had on Starbucks.
Supply Chain Transformation at Starbucks (B)
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