200 Worker Layoff

[2Today3Tomorrow]

Thoughts on this?

 

[DC Diva]

So this is a building within an existing building? Bet this isn’t the end……

 

[Ashfromoldsite]

Just wow.

 

[OutboundLife]

Seems strange to do this just before fall season. Maybe they hope to use the FC team members for the DC over the busy months.

While I hate to see people lose their jobs, I would not mind our FC going away. They should have their own building and make no sense taking up space in a DC. We would immediately start saving money by being able to process non-con near the wing and not trying to store up to a million cartons offsite.

I do not look forward to having to help our FC trying to take up the slack this year.

 

[Hal]

I thought I heard that the majority of employees were moved over to the DC side.

 

[FlowTeamChick]

Can someone clarify how it works to have a Fulfillment Center inside a DC? Do they pick Fulfillment orders like TMs at stores do? I thought that's how it used to be done chain wide but then it was all moved to stores.

 

[targetdude1]

my dc never had a fulfillment center in fact i'm piecing it together mentally now. i'm assuming its where they sent individual orders to customers of course.

we had like a dept of two guys that did that with big orders i think it was at one time (bulky items iirc). i forgot what they called it. but it was done away with years ago and short lived.

Edit: It was called ship alone IIRC.

 

[BKop16]

my dc never had a fulfillment center in fact i'm piecing it together mentally now. i'm assuming its where they sent individual orders to customers of course.

we had like a dept of two guys that did that with big orders i think it was at one time (bulky items iirc). i forgot what they called it. but it was done away with years ago and short lived.

I know the FCs will help with major releases like Stanley cups and Switch 2 launches. Not sure what else they focus on vs stores.

 

[jenna]

my dc never had a fulfillment center in fact i'm piecing it together mentally now. i'm assuming its where they sent individual orders to customers of course.

we had like a dept of two guys that did that with big orders i think it was at one time (bulky items iirc). i forgot what they called it. but it was done away with years ago and short lived.

Edit: It was called ship alone IIRC.

I thought Target had a "ship to store" service... a guest could order an item and have it shipped to a Target (rather than to their house/work.) I remember items being dropped off in Receiving for guests - not sure if it was UPS/FedEx or a GM
truck.

ETA -- found a Reddit post:

 

[NovaOne]

Seems strange to do this just before fall season. Maybe they hope to use the FC team members for the DC over the busy months.

While I hate to see people lose their jobs, I would not mind our FC going away. They should have their own building and make no sense taking up space in a DC. We would immediately start saving money by being able to process non-con near the wing and not trying to store up to a million cartons offsite.

I do not look forward to having to help our FC trying to take up the slack this year.

It doesn’t make sense to have FC if stores are still shipping .com orders out the back. Essentially, you’re paying team members at a FC so much more than you are paying team members at the store to do the same task as well as the FC that are within an existing RDC or taking up capacity space that could be used. Sucks but if they are so focused on budget they need to pick… .com orders from Stores or FC.

 

[BKop16]

It doesn’t make sense to have FC if stores are still shipping .com orders out the back. Essentially, you’re paying team members at a FC so much more than you are paying team members at the store to do the same task as well as the FC that are within an existing RDC or taking up capacity space that could be used. Sucks but if they are so focused on budget they need to pick… .com orders from Stores or FC.

But you're also paying for the RDC to load it on a truck, a driver to get it to the store, the store to unload it, push it, potentially backstock it, have fulfillment pick it, and then pack it.

 

[NovaOne]

But you're also paying for the RDC to load it on a truck, a driver to get it to the store, the store to unload it, push it, potentially backstock it, have fulfillment pick it, and then pack it.

This is true, but having .com orders go to the store closest to the guest does save on transit costs. Freight is already going from the RDC to the store, where the store unloads it, pushes it, and backstocks extra inventory as part of the normal process. If orders are pulled from backstock, they’re essentially generating more profit.
From a labor perspective, it doesn’t make sense to pay FC employees a higher wage to do the same task store team members are already doing, especially when FC operations inside an RDC take up capacity that could be used for core freight. Adding a fulfillment pick at the store level is just the last step in a process that’s already happening, rather than an entirely separate cost structure like at an FC.
In my seven years with Target (three in a store and the rest in distribution) the only recurring issues I’ve seen with store fulfillment are with preorders and high demand items. Pulling those from store inventory for .com can frustrate in store guests and in store quest taking inventory cause backorder or delay notifications for online guests.
Ultimately, I think the root of the issue is Target trying to mirror Amazon and Walmart on shipping speed instead of leaning into its own unique, standalone approach.

 

[vendordontmesswithme]

I thought Target had a "ship to store" service... a guest could order an item and have it shipped to a Target (rather than to their house/work.) I remember items being dropped off in Receiving for guests - not sure if it was UPS/FedEx or a GM
truck.

ETA -- found a Reddit post:

It stopped some time ago We would get so much that guest service wouldn't have holding space.

 

[OutboundLife]

FCs in the RDC share nothing other than the occasional RDC team member when the sorter is down or Black Friday.
The FC just takes up floor space and dock doors. The RDC still ships out trailers from the wing to the FC and the FC receives the trailers in their doors. Then, puts the freight in their “racks” and processes freight out to their shipping company trailers.

 

[DC Diva]

there are 2 DC with built in FC, and with stores now having fulfillment trams, those will be reverting back to Dc only next year with thise FC teams didplacrd as well. that will be another 4-500 jobs lost.