News Releases

Supply Chain Management course offers real-world experience with presentations to Target

Wednesday, June 10, 2009

BY LAURA WOLFE

Associate professor Suman Mallik's Capstone in Supply Chain Management students presented their semester-long projects to executives from Target on May 6. At the beginning of the semester, Target executives presented a case to the class, "Choosing the right site for a distribution center." Target executives worked with the students, asking the groups to find an optimal location in the Northeast United States for a new Regional Distribution Center (RDC) to be built within the next two years. As Target continues to build new stores, there is an increased need for distribution centers.

Students in the class, SCM 410, were divided into pairs for the project. Each group researched, planned, and presented where they believed the best location for the new RDC would be. The winning group, Jane Hermsen and Ali Iyican, proposed to construct a Regional Distribution Center in Bucks County, PA at the Keystone Industrial Complex. This proposal came after a semester of analyzing the labor market, laws, costs, competitors, stores growth, guest demographics and supply chain strategies and challenges for the area.

"SCM 410 was a great way to learn about supply chain management in the real world," said Hermsen, senior in supply chain management from Gravois Mills, MO.

Target executives were impressed by the creativity exhibited by each of the groups. "The project that we gave the students was very broad and somewhat ambiguous. It was outstanding to see the way that each group approached the project with a self-defined strategy," said a representative from Target in a written statement. "They had a very clear approach to solving the problem at hand and the results clearly reflected this effort."

Participants were asked by Target to include in the proposals a SWOT analysis (analysis of strengths, weaknesses, opportunities and threats) of the current situation Target faces with its supply chain and transportation needs, as well as a second SWOT analysis based upon the implementation of the proposal. Groups also researched labor information such as the minimum wage of states in the Northeast, any relevant labor union regulations, and the educational level of the nearby populous in order to determine hiring possibilities.

"The real-life project with Target was a great addition to the class," said Iyican, senior in supply chain management with a concentration in human resources management. "The project was quite challenging due to our limited knowledge of the company's operational details. However, the Topeka Target RDC management helped us with our questions." Iyican is an international student from Cyprus.

"When selecting a state, we looked at business incentives offered in each of the three states we had narrowed our selection down to," Hermsen said.

"Educational levels and availability of the potential work force also played a big role in our decision," Iyican said. "We decided that Keystone Industry Port Complex in Bucks County, PA was the most suitable location."

The groups made presentations toTarget executives. The presentations lasted 20 minutes and included time for question and answer sessions at the end. Members of the winning team each received a $1,250 scholarship and members of the second place team each received a $750 scholarship. Both awards came from the Target Corporation.

The Target Campus Grant Program provides financial support to schools for programs that develop and influence future business and community leaders. Target is a regular presence at the University of Kansas, recruiting promising students for internships as well as full-time career opportunities. The School of Business takes pride in producing successful graduates through a focus on constant innovation. Through the method of experiential learning, like the Target supply chain management competition, students are able to appl...