Limits and Challenges of Supply Chain Digital Collaboration: A Case Study on Target Corporation's "Store as a Hub" Strategy

Jiayi Luo

2025

Abstract

This study discusses the effectiveness and limitations of digital collaboration in the supply chain in omnichannel retailing using Target's "Store as Hub" strategic model as an entry point. These utilize inventory systems with real-time conversations, cloud platforms, and decentralized logistics. Digital transformation increased operational resilience by reducing last-mile delivery costs by 60-70%, achieving 95% in-store order fulfillment, and improving inventory record-keeping accuracy to 92%, but failed to deliver sustained financial gains. The data shows that Target's operations have improved. However, revenues are still down from $109.1 billion in 2022 to $106.6 billion in 2024, and earnings per share are down 19% by the end of 2024, underscoring the disconnect between efficiency gains and value realization. External pressures and internal constraints exacerbate the strategic challenges. Moreover, competitors such as Amazon and Walmart undermine Target's differentiation through superior logistics density and technology scalability. The findings suggest that digital collaboration alone does not guarantee competitive advantage, and that success depends on operational upgrades coordinated with dynamic pricing, customer experience design, and organizational capacity building.

Paper Citation

in Harvard Style

Luo J. (2025). Limits and Challenges of Supply Chain Digital Collaboration: A Case Study on Target Corporation's "Store as a Hub" Strategy. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 717-722. DOI: 10.5220/0013853000004719

in Bibtex Style

@conference{iceml25,
author={Jiayi Luo},
title={Limits and Challenges of Supply Chain Digital Collaboration: A Case Study on Target Corporation's "Store as a Hub" Strategy},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={717-722},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013853000004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - Limits and Challenges of Supply Chain Digital Collaboration: A Case Study on Target Corporation's "Store as a Hub" Strategy
SN - 978-989-758-775-7
AU - Luo J.
PY - 2025
SP - 717
EP - 722
DO - 10.5220/0013853000004719
PB - SciTePress