MEGATHREAD End to End team PILOT

[Rarejem]

I'm sensing that correct capacities plays a big role here. Yes?

 

[SFSFun]

Capacities correct (or mostly correct) from the beginning would be necessary too. None of this "oh just leave it at 200 capacity for those peg hooks and let the store fix it" bullshit.

 

[Redzee]

Got the news. End to end looks like the end of Flow team at my store. I have been marginalised which will give me time to watch dayside deal w freight.
Marginalised was a poor word choice. I'm just out of the way of the changes.

 

[BoxCutter]

Yes, in general this is correct. I will say that the new system actually will lower the margin of error over the current system. The big change here, and what many people may overlook, is the eaches replenishment model. Because we are currently on the cases model, the amount within the case is generally going to be how large the margin of error is going to be. Because something may come with 24 cans in a case, it will currently automatically wait until it is worth the +24 OH in the store to ship. Sometimes this means getting dangerously close to out of stock. If the triggers were set higher (and therefore shipped earlier) throughout the company, you would be allocating too much inventory to stores and causing higher markdown and defective rates (and overall forcing the company to own more product at any given time). Its a dangerous game.

What the eaches model allows is to no longer play this game. You create a steady stream of merchandise to stores and have them trigger replenishment right away no matter what, set to fill the floor to 100% without ever going over.

If I had to guess, this was in response to negotiations with our suppliers. We attempted to achieve efficiency through another method, which was to talk to vendors about changing their packaging to align with our in-store capacities (hey you send us cases of 48 but all our stores only fit 24 on the shelf, so please reduce) and/or getting our merchandising teams to try and match our capacities to the amount within cases... I am guessing this did not go as planned. If it was possible, a larger retailer such as Walmart would have played hardball with their suppliers already and forced them to match them...

Again, on paper it looks good. But, first, as @SFSFun posted, capacities have to be accurate from the start. That means HQ has to set accurate capacities correctly, with the store only adjusting for special or unique circumstsnces such as a support pole going through the shelves. Stores don't have the hours to check and adjust every location in the store.

Also, the triggers actually have to work in the system. While doing research I will find OUT locations with no past activity, meaning there are no on-hands, no last research, no last pull, no last sold date, and zero on the way. These are active items, not discontinued, not clearance. The system should have ordered it when it hit zero, or, made it a RIG. But, neither happened and that product was out of stock for who knows how long until it was researched.

These are just two areas in the stores that need to be spot on. How many exist all along the distribution chain?

I'm not questioning the efficiency of the End to End process. I'm questioning HQ's commitment to properly executing it. And, I'm not talking about supplying the correct number of racks needed, I'm talking about investing in enough competent and committed personnel to pull it off.

Target Canada, on paper, looked like a good idea. But, it was the execution at a number of levels that doomed it.

 

[SrTLall]

While it would be nice to have the correct capacities, and I can't imagine why it's so hard to get capacities right, a replenishment system based off of eaches isn't really going to rely on capacities. Rather, a smart system will base replenishment off of sales, on hands, and presentation minimums. Ideally, the OTL will fluctuate based off of a store's needs, making sure the floor stays full by facing, not capacity.
For example, mouthwash gets 4 shelves, 4 facings and capacity 20. A store that sells 3 eaches between replenishment will never need close to capacity to stay faced out. But a store that sells 25 eaches between replenishment will need more than capacity to stay full.

 

[Rarejem]

While it would be nice to have the correct capacities, and I can't imagine why it's so hard to get capacities right, a replenishment system based off of eaches isn't really going to rely on capacities. Rather, a smart system will base replenishment off of sales, on hands, and presentation minimums. Ideally, the OTL will fluctuate based off of a store's needs, making sure the floor stays full by facing, not capacity.
For example, mouthwash gets 4 shelves, 4 facings and capacity 20. A store that sells 3 eaches between replenishment will never need close to capacity to stay faced out. But a store that sells 25 eaches between replenishment will need more than capacity to stay full.

Currently capacity totally affects the OH count. The system assumes that the floor counts are equal to the capacity. If the capacity is set at 200, but only 5 fit, the system thinks that once it is pulled and filled that there are 200 on the floor, not 5.

 

[qmosqueen]

While it would be nice to have the correct capacities, and I can't imagine why it's so hard to get capacities right, a replenishment system based off of eaches isn't really going to rely on capacities. Rather, a smart system will base replenishment off of sales, on hands, and presentation minimums. Ideally, the OTL will fluctuate based off of a store's needs, making sure the floor stays full by facing, not capacity.
For example, mouthwash gets 4 shelves, 4 facings and capacity 20. A store that sells 3 eaches between replenishment will never need close to capacity to stay faced out. But a store that sells 25 eaches between replenishment will need more than capacity to stay full.

As long as you keep it full and it sells then no need for capacities. My eggs and half gallon milks are not back stocked and pushed 3 times a day We still get a normal delivery for these based on sales. Oh and we sell tons of eggs (8 boxes) and about 100 half gallons per day (17 boxes)
Our capacities are all wrong but we are keeping them full and selling lots

 

[ISMike]

Currently capacity totally affects the OH count. The system assumes that the floor counts are equal to the capacity. If the capacity is set at 200, but only 5 fit, the system thinks that once it is pulled and filled that there are 200 on the floor, not 5.

The system doesn't assume anything. Capacity, OH, and on floor count are 3 distinct numbers. If 200 eaches of an item got pulled with capacity at 200 and 195 immediately backstocked, then yes, on floor would show 200. However, in most stores, the 195 would be left on the floor flexed out on the entire section and it would be "accurate" anyway.

 

[BigEyedPhish]

Out of curiosity, what does this mean for the ETL-LOG position? Had a candid conversation with my boss today, and I can tell he is very worried.

 

[Rock Lobster]

Out of curiosity, what does this mean for the ETL-LOG position? Had a candid conversation with my boss today, and I can tell he is very worried.

All ETL titles change as this rolls out. Most stores appear (conceptually) to go down to just the STL and 3 ETLs (Essentials, Grocery, and Style). I am pretty sure (again its all very vague still) that at higher volume stores they will need to allow for an additional ETL position which I am guessing is going to be Service.

Basically, Grocery = Food (Dayside + Logistics for Food). Style = Softlines/GE/Home. Essentials = Hardlines/Logistics. I think that Service takes GE/Electronics/Cosmetics and leaves Style with just SL/Food at higher volumes but its still up in the air. LOG, HR, and AP go away and the combine into those roles.

 

[Stocker]

On paper, and as Rock Lobster has outlined and explained it, I could see End to End for the whole store working.

However, my feeling is that every step along the way from buyers, to shippers, to DCs, to finally, the stores, would have to perform incredibly close to perfectly.

If one of those areas doesn't do their job right the first time, you are going to have some outs in the store. If more than one area don't do their job right the first time, you will have even more outs in the store. And, I do mean the entire store, not just the sales floor.

It comes down to flawless execution every single day.

Now, ask yourself, when was the last time Target executed a big initiative flawlessly? Or, better yet, how long did it take them to make it nearly flawless?

My feelings exactly so far. Unless the whole company has been prepping for this for a bit, if this goes forward it will take a year or more to get things working right and even then unless everything works right someone will be stuck with a mess. A big workaround for smaller or understaffed stores will just be this (former plano, price change, instocks etc) team member is assigned to all of Hardlines this is the area you need to work in today....

 

[SitSpotSit]

A glitch I can't help but be concerned about for all of this is communication. I know at my store communication isn't consistent nor does it seem to be a priority. I think the only way for success with a change this fundamental is to start communicating now. Start talking about the changes, how well it looks like it will work, assure people their jobs are secure, etc. What will happen if they don't take control of the narrative is rumor and grumblings and low moral. By the time this rolls out it will definitely be met with apprehension.

I think this sounds like a good plan for a company like Target. They have to find ways to streamline their supply line if they want to stick around. It makes sense. But, if they don't start pumping this up to the people who will be in the trenches with it, it's going to be tough.

 

[Rock Lobster]

A glitch I can't help but be concerned about for all of this is communication. I know at my store communication isn't consistent nor does it seem to be a priority. I think the only way for success with a change this fundamental is to start communicating now. Start talking about the changes, how well it looks like it will work, assure people their jobs are secure, etc. What will happen if they don't take control of the narrative is rumor and grumblings and low moral. By the time this rolls out it will definitely be met with apprehension.

I think this sounds like a good plan for a company like Target. They have to find ways to streamline their supply line if they want to stick around. It makes sense. But, if they don't start pumping this up to the people who will be in the trenches with it, it's going to be tough.

The problem is they do not even know exactly what it all means yet. The STLs appear to be as confused as anyone. Right now the message is for them to start moving portions of freight dayside in areas where its possible (Softlines, HBA Repacks, Electronics, Grocery on U-Boats) because I think they want us to try and do staffing in two waves. By the time we get those areas hired and trained they are going to roll out the rest of the freight at a later time period and if you wait too long you will have 30+ hiring needs.

 

[HRZone]

The problem is they do not even know exactly what it all means yet. The STLs appear to be as confused as anyone. Right now the message is for them to start moving portions of freight dayside in areas where its possible (Softlines, HBA Repacks, Electronics, Grocery on U-Boats) because I think they want us to try and do staffing in two waves. By the time we get those areas hired and trained they are going to roll out the rest of the freight at a later time period and if you wait too long you will have 30+ hiring needs.

This is spot on. We have opened five sales floor positions specifically for the remodel.

Tms are asking me why we are hiring when they are only getting 10 hours a week...

 

[Rock Lobster]

This is spot on. We have opened five sales floor positions specifically for the remodel.

Tms are asking me why we are hiring when they are only getting 10 hours a week...

Yes, and within a year or so I believe the flow team that is 4am will be suffocated out. Already I can see stores easily cutting down their 4AM hours to nearly half if they do all the rollouts currently suggested (or being suggested this summer when they go live). That is the first wave. Second wave will come when they go live on palletized freight, and a 4am team will no longer be needed at all (maybe HV stores will have a small team to do heavy commodities areas but that is it).

 

[BigEyedPhish]

If this doesn't work I could see this being Target's Swan song. If it does work, it will just be more of the same, and will see it again, cut back until this doesn't work either.

 

[BigEyedPhish]

Again, on paper it looks good. But, first, as @SFSFun posted, capacities have to be accurate from the start. That means HQ has to set accurate capacities correctly, with the store only adjusting for special or unique circumstsnces such as a support pole going through the shelves. Stores don't have the hours to check and adjust every location in the store.

Also, the triggers actually have to work in the system. While doing research I will find OUT locations with no past activity, meaning there are no on-hands, no last research, no last pull, no last sold date, and zero on the way. These are active items, not discontinued, not clearance. The system should have ordered it when it hit zero, or, made it a RIG. But, neither happened and that product was out of stock for who knows how long until it was researched.

These are just two areas in the stores that need to be spot on. How many exist all along the distribution chain?

I'm not questioning the efficiency of the End to End process. I'm questioning HQ's commitment to properly executing it. And, I'm not talking about supplying the correct number of racks needed, I'm talking about investing in enough competent and committed personnel to pull it off.

Target Canada, on paper, looked like a good idea. But, it was the execution at a number of levels that doomed it.

You forgot "Willing for this pay" as well.

 

[jenna]

You forgot "Willing for this pay" as well.

and provide enough hours to those personnel.

ETA: You give a team member 10 hours a week, how much ownership or pride are they going to have over an area? Or are they going to just put in the time, and leave the "work" and messes to others?

 

[SrTLall]

Currently capacity totally affects the OH count. The system assumes that the floor counts are equal to the capacity. If the capacity is set at 200, but only 5 fit, the system thinks that once it is pulled and filled that there are 200 on the floor, not 5.

SFQ relies heavily on correct capacities. On hands aren't really effected by either. Regardless, neither SFQ nor capacity would be as important in a system that bases its replenishment off of eaches instead of casepacks.

 

[SrTLall]

If this doesn't work I could see this being Target's Swan song. If it does work, it will just be more of the same, and will see it again, cut back until this doesn't work either.

One reason why many of Target's 'ideas' don't work is because Target is trying to do things its own way. It seems like Cornell's strategy is to implement industry-wide ideas that are known to work. While the transition to these new methods may be a pain, the chances of success are fairly high compared to Spot's normal M.O.

 

[balthrop]

One reason why many of Target's 'ideas' don't work is because Target is trying to do things its own way. It seems like Cornell's strategy is to implement industry-wide ideas that are known to work. While the transition to these new methods may be a pain, the chances of success are fairly high compared to Spot's normal M.O.

the chance for this to work is most definitely not high. There is, has been and will be no communication with the people expected to carry out this latest boondoggle, the companies employees. We will be expected to do more with less, again. and all the company goons on here will bemoan the lack of trying to get turd to shine. this is a turd and most know it and we are going to be expected to make all shiny but it is still what it is a turd.

 

[SrTLall]

the chance for this to work is most definitely not high. There is, has been and will be no communication with the people expected to carry out this latest boondoggle, the companies employees. We will be expected to do more with less, again. and all the company goons on here will bemoan the lack of trying to get turd to shine. this is a turd and most know it and we are going to be expected to make all shiny but it is still what it is a turd.

Don't quote me if you're going to misinterpret what I said. "The chance for this to work is most definitely not high" is definitely not the equivalent of anything I said in my post.

With that being said, you need to be able to see the bigger picture. I'm sure you're aware of how inefficient our current logistic processes are. Transitioning to a process that resembles various other tried-and-true methods throughout the industry can do nothing but help. I realize Target has brainwashed many to think that their way is the only way, but you have to be recogize that there are better ways of doing things.

 

[Logo]

So I for one am excited for this roll out. Not just because I have will no longer have to deal with other's stupidity For example TL decides to work with vendor and brings in a new product. Where does it go? TL uses an end cap that has an active POG. They backstock some of the favors to make room. Never untied the POG so we have been pulling and backstocking the same items repeatedly. In a matter of weeks that will no longer be my problem.

Honestly I think it's the long time team members that will struggle with the changes that are coming. So use to doing one way. On paper it makes super sense! Its just not the Target mind set of most TMs. Not to say I'm not worried, because people's jobs are going to be effected.

E2E in electronics will be awesome!

Style team will be interesting, every one thinks you can just kick Flow over to Style. Some of our TM can barely communicate with their ETL how are you going to have them engage with guest? Back up if necessary. Set all POGs (including those in intimates that Plano use to do) Do price changes? (that's going to be interesting in my store!!!) Basically (w added duties) become a sales floor TM.

 

[Rock Lobster]

Don't quote me if you're going to misinterpret what I said. "The chance for this to work is most definitely not high" is definitely not the equivalent of anything I said in my post.

With that being said, you need to be able to see the bigger picture. I'm sure you're aware of how inefficient our current logistic processes are. Transitioning to a process that resembles various other tried-and-true methods throughout the industry can do nothing but help. I realize Target has brainwashed many to think that their way is the only way, but you have to be recogize that there are better ways of doing things.

Yes and for once it is addressing the cause to the initial problem. Where before the company leadership was searching for a solution to improve service, they just made the vibe without addressing any other obstacles in our way. The current leadership actually looked at the entire picture and said, "If we want to improve service, we need to make it so stores can spend more payroll during the day instead of before store open. How can we accomplish this?"

The answer was obvious once the question was asked. Can you redo our supply chain so that not only is it more efficient, but making the stocking process clean and quick enough so that we are able to stock our shelves throughout the day? If product can arrive in the store ready to go straight from vehicle to shelf, you no longer need cardboard cages or backstock flats or bowled out merchandise. If the process becomes this efficient, you are looking at upwards of 140-200 hours of payroll every truck getting invested back into the store during operating hours!

 

[Kartman]

I just learned how to pull batches and work backstock! Sweet! A nice change from working the floor. I've always wanted to learn more about the BR.