May 17, 2020

Target supply chain transformation paying dividends

Supply Chain
Supply Chain
James Henderson
3 min
Target supply chain transformation paying dividends
Target's efforts to transform its supply chain function is paying dividends, according to its Chairman and CEO, Brian Cornell.

In the second quarter, t...

Target's efforts to transform its supply chain function is paying dividends, according to its Chairman and CEO, Brian Cornell. 

In the second quarter, the company saw its digital sales grew by 40% year-over-year and store comparable sales were up 5%, partly boosted by its modern fulfilment scheme. 

In an earnings call, Cornell said the a number of investments were showing results, including its plan "to perform wall-to-wall remodels of approximately 1,000 stores over a three-year period".

He told stakeholders: "Our work to complete the transform, Target supply chain, placing our stores at the center of a modern network design to deliver an unmatched combination of convenient fulfillment options; opening new small format stores across the country allowing us to reach guests we couldn't serve with our larger formats; last year's investments to ensure we're priced right daily in support of the Pay Less side of our brand promise; our work to deliver a constant drum beat of new and exciting merchandize throughout our owned and exclusive brand portfolio; the rollout of new convenient digital capabilities that make it easier and more inspiring for guests to shop, save and use their REDcard, and most importantly investments in hours, wages and training for our team members.

"These investments enable our team to deliver higher levels of service and productivity and our guests are responding to the change.


"We embarked on this investment plan at the beginning of 2017 and our progress so far has been well ahead of our original expectations."

In December last year, Target boosted its delivery capabilities with the $550mn purchase of same-day delivery platform Shipt

John Mulligan, executive vice president and chief operating officer for Target, gave an update on the call, commenting: "Shipt, our same day personal shopping service, is now operating in more than 160 markets and serving more than 1,100 Target stores.

"Over the last year, Shipt's membership base of more than tripled while orders, revenue and GMB are two to three times higher. While some of this growth is being driven by Shipt's entry into new markets, we’re seeing orders in GMB in comparable markets meaning markets in which Shipt was already operating a year ago that are up nearly 100% year-over-year.

"We’re also very pleased that new partners continue to sign into the Shipt platform attracted by the reliability and level of service that Shipt can provide. Year-to-date Shipt team has added to their marketplace a total of 19 new retail partners, who operate under 24 unique banners across the country. This is more than double the number of new partners that Shipt added to its marketplace in all of 2017."

Share article

Jun 22, 2021

ASCM: Supply chain pay gap closes in under 40s

2 min
Women under 40 in supply chain now earn more than men, according to ASCM’s 2021 salary and career report, though POC and older women still face imbalance

The pay gap between men and women working in supply chain under the age of 40 has finally reached parity, according to the Association for Supply Chain Management’s latest annual Supply Chain Salary and Career Report

The gender pay gap in this age group had been narrowing over the past two years, the ASCM’s previous surveys show, and in 2021 has closed entirely. Women report a median salary of $81,000 annually, while men earn a median annual salary of $79,000. Across all age brackets, men report a median salary of $82,000 and women $80,000.

Other highlights from the ASCM report

  • 95% of supply chain professionals kept their job through the pandemic
  • The typical starting salary for a supply chain professional is $60,000
  • 48% of supply chain professionals now work from home
  • 88% of survey respondents find supply chain a fulfilling career path


But there is still work to be done in closing the divide in those over the age of 40. Older men are still earning far more than their female peers, with a discrepancy of between $12,000 and $23,000 annually. ASCM’s report does not definitively conclude why this disparity remains, but says women who began their careers several decades ago may have started out on lower salaries. They may also have missed out on steady wage increases and career development after taking time away from work to have and raise families. 

It is also likely that the pay gap in over 40s is affected by a lack of women in executive leadership positions. A recent Gartner study found that, while women now represent 41% of the supply chain workforce - a five year high - only 15% of executive level positions are held by women. That figure is a decline of two per cent on 2020. 

ASCM 2021 Supply Chain Salary and Career Report
Source: ASCM 2021 Supply Chain Salary and Career Report

Supply chain’s racial pay gap remains

For the first time, ASCM’s annual survey also looked into the pay gap between ethnicities, finding that the median salary for black professionals was 12% less than their white peers, and Latinos earned on average 14% less. That represents a divide of between $9,000 and &10,000 in real terms. Asian professionals earned a median salary of $80,000, compared with the $83,000 for white professionals. 

Abe Eshkenazi, the ASCM chief executive, said reporting on and acknowledging lingering wage disparity was not enough: “Supply chain organisations must lead the way by creating environment where diverse talent is valued, included and developed. The need for supply chain professionals has never been greater, so now is the time to expand the aperture to include diversity of thought, influence and input — particularly for women and people of colour.”    

Read the full report: ASCM 2021 Supply Chain Salary and Career Report

Share article