Target Distribution Target and the NCSCTE Phil Jones Target Distribution Target and the NCSCTE

Stores in 49 states and 2 countries 365,000 Team Members 1962 First Store Opened Stores in 49 states and 2 countries (US and Canada) $72+B 2011 Sales Many of you are likely familiar with Target, perhaps having shopped at one of our stores. Here are a few fun facts about the corporation. 5% Community Commitment

When you hear Target, your first thought will likely be our stores.

Perhaps you see team members in red and khaki, or of the great values you find inside our clean, well-lit stores.

I come from Target Distribution I come from Target Distribution. We are the part of our supply chain that enables items to appear in the stores, but is rarely seen. My world has: Trucks and trailers DCs with more than a million square feet in footprint - more than a mile to walk around the periphery Miles of conveyors and all kinds of automation Food DCs more than 100 feet high, with tens of millions of cubic feet and freezer chambers that are 15 degrees below zero

The supply chain DC at Target uses many cutting edge technologies to efficiently move and store cartons within each building, potentially including: Large robots that can handle thousands of pounds of product in a single lift Miles of complex conveyors Sortation systems that route hundreds of thousands of cartons per day Automated Storage and Retrieval System cranes that can be more than a hundred feet tall, or move almost 30 miles/hour

U.S. & Canada Stores Our 1832 stores are spread through towns and cities all over the US and Canada. This year marks a large milestone as we opened 124 stores in ten provinces in Canada, marking our first stores outside the US.

Distribution Network To support these stores, as well as our many Target.com customers, our supply chain uses: General Merchandise Regional Distribution Centers Import Warehouses Food Distribution Centers And direct to guest Fulfillment Centers Regional Distribution Center (26) + 3 Canada Import Warehouse (4) Food Distribution Center (4) + 2 Under Construction Target.com Fulfillment Center (3)

DC Overview Video

Target’s Evolving Technology Forklifts Conveyors and Sorters Automated Receiving Technology AS/RS Cranes, Robots The technology we use in our centers mirrors the evolution of material handling systems that are used by supply chains throughout the world. First came forklifts Conveyors and sortation systems made it possible to handle many more cartons per day in a cost effective fashion Incorporating several technologies together allowed us to automate heavily manual processes like unloading trailers that could previously take multiple days into a few hours Newer storage and handling technologies further sped up processing, reduced taxing tasks, and enabled us to handle foods in climate controlled and frozen areas that are challenging places to work. Newest technologies that are just now becoming available from universities like MIT, Cal Tech and Georgia Tech enable us to store and handle almost double the amount of cartons per year

Target’s Supply Chain Technician Challenges Target frequently needs to fill technician jobs in DCs throughout our network Numerous technicians per building, on all shifts Increasing technology means more technician need

Target’s Supply Chain Technician Challenges Knowledgeable/experienced Supply Chain Technicians are a limited and sought after employee group Lack of population density can limit pool of potential skilled technicians Regions with high DC densities are very competitive for acquiring and retaining talent Technicians must understand numerous systems

Target’s Supply Chain Technician Challenges Newer, advanced automation technologies require highly-skilled technicians Technologies evolving faster than educational programs can keep up Many community colleges lack applicable course content Lack of understanding of technician roles Generalist versus specialist skills need

Target’s Supply Chain Technician Challenges Limited ability to “grow” technician talent internally Demanding change to existing skill sets In-house training content inadequate for advanced automation Need to run the building

workforce development vision Target will engage local community and technical colleges through the SCTE to help develop future supply chain technicians.

What Target’s Done and Can Do (Corporate) Leadership commitment to ILT/SCTE Help SCTE network with industry Leverage industry relationships for lab equipment Contribute to curriculum development Provide photos, videos, and testimonials Confidential and Proprietary to Target Corporation

What Target’s Done and Can Do (Local) Engage local DCs with Community Colleges Tours for school instructors/leaders Campus presence with DC Engineers and Managers Participate in student mentoring activities Community college boards Support campus job fairs Develop hiring processes for SCTE programs Confidential and Proprietary to Target Corporation

Supply chain companies need more technicians from our schools

Supply chain/ industry has much to offer academic partners

Target will be a leading partner for workforce develop-ment