Lifetime of Achievement: Target’s Gretchen McCarthy
A career in the logistics and supply chain sphere is not one for the faint-hearted, particularly in retail where precision and efficiency are the key determiners of success.
It however has been a space where Gretchen McCarthy has shone and continues to make an impact. Currently serving as Target’s Chief Supply Chain & Logistics Officer, Gretchen’s career at the retail giant spans more than two decades.
A pivotal figure in Target’s operations and a member of its executive team, Gretchen has been — and continues to be — instrumental in transforming and streamlining the company's supply chain operations, ensuring that Target not only meets but exceeds customer expectations.
Gretchen McCarthy: Stellar supply chain professional
Poised as a visionary leader in supply chain management, Gretchen’s rise to the heights of Target’s senior leadership is a testament to her deep understanding of supply chain intricacies and her innovative approach to problem-solving.
Her achievements have also been celebrated in our Top 100 Women supplement, placing her second among a cohort of the world’s brightest supply chain minds.
“My approach to every role I’ve held is to be curious,” she says. “I learned from the experts, asked a lot of questions and trusted the experience I had built to help me make good decisions. It’s a trait that has driven my career and led me to new opportunities across the business.”
A graduate from Cornell University with a BS in Hotel Administration, Gretchen’s specialties include trend analysis, merchandising, inventory management, forecasting, sales and business process improvements.
These are all skills she’s applied across her career, which also includes a stint at US lifestyle and fashion retailer Abercrombie & Fitch.
She joined Target as a Buyer in 2004, before focusing more closely on supply chain operations from 2016.
At the heart of Gretchen’s strategy is a commitment to leveraging technology to enhance supply chain processes.
Speaking on her appointment as Chief Supply Chain and Logistics Officer in 2022, she notes that one of the most memorable initiatives she has worked on at Target involved enhancing Target’s technology, supply chain and inventory management with the goal of spurring growth.
“It was an opportunity to apply a new level of strategic thinking to what could be possible for Target and it has yielded incredible results,” she says.
Driving collaboration throughout Target’s supply chain
Enabling a tech-forward approach to supply chain has not only reduced costs but also improved the speed and reliability of deliveries, significantly enhancing customer satisfaction.
It has also enhanced relationships with entities within Target’s supply chain, all of whom contribute to the magic and success of Target’s brand and operations.
The brand is steadfast in the belief that relationships with its suppliers are closely connected with the shopping experiences it creates for its clientele, guaranteeing shoppers’ favourite products make it from Target distribution centres to its stores.
Gretchen’s experience across Target — including in Canada and India — will help keep this momentum going. “The lessons I’ve learned and relationships I’ve built are assets I’ll carry forward as I work alongside my team on a larger scale in the years to come,” she says.
Collaboration is also key to maintaining Target’s sustainability and efficiency goals across its supply chain, and was critical to the monumental challenge faced during the Covid-19 pandemic where Target came face-to-face with a multi-billion dollar inventory problem.
Under Gretchen’s leadership, the company has been able to reduce its inventory by approximately US$2bn as inventory levels decreased from US$13.9bn to US$11.9bn between 2022 and 2023.
In conversation with The Wall Street Journal, Gretchen highlights the importance of precise inventory management technologies, with investments in machine learning (ML) and artificial intelligence (AI) improving forecasting accuracy, facilitating decision-making regarding inventory placement and communication with suppliers.
Overcoming such a difficult time for businesses regardless of scale and size takes a skilled leader at the helm to navigate. Thanks to Gretchen’s experience and leadership, Target is well-positioned to meet the ever-changing demands of the retail market and will go from strength to strength thanks to her guidance approach to supply chains.
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