Which adds to another negative to this method. So taking all this into account what can be done to still use the customer focused supply chain method, continue to stock their best products, lower the inventory levels at the distribution centers, and at the same time lower or at worst maintain the same cost for all of this. In my opinion, I believe that the Proctor and Gamble Multi-echelon inventory system would be a system that could help Target out a lot and solve their issues they’re having with their Customer focused strategy. Multi-echelon inventory system lets both wholesale distributors and retailers benefit to the max from the inventory investment. Companies that use Multi-echelon inventory system have an extensive knowledge of the suppliers and customers business environments. Collaboration links trading partners and enables them to operate as one virtual corporation. Some of the characteristics of this stage would be collaboration across the entire supply chain and Measures directly linking supply chain results to company goals. Proctor and Gamble originally introduced Multi-echelon inventory system for their cosmetic line. It was used to see if the system could meet the standards to keep up with all the functions that they required from it. Their main goal was to keep 99% client satisfaction, increasing forecasting, lowering inventory and …show more content…
Multi-echelon inventory optimization regarding the supply chain reduces inventory levels up to 15%, it reduces the cost and regarding customer service levels it has the ability to surpass or maintain. With target being a very large vendor and not being competition towards Proctor and Gamble. I personally cannot think of a reason target couldn’t consider this as a legit option. It’s a win-win deal for both Target and Proctor and Gamble because when Target increases its sales and lowers it cost, those benefits go up the supply chain and go straight to Proctor and Gamble. One of the only issues I can think of for target would be having to wait for their technology to develop or having to rely on a third party software. If there were to develop an in-house software for this method it could cost a decent amount of money. But having this software would make the system be personalized specifically for