Target Tests More Frequent, Tailored Deliveries To Stores

Target is testing a new distribution strategy aimed at cutting down its replenishment cycle from days to hours while reducing overall inventory at stores, especially at small-format ones, Target Senior Vice President of global supply chain and logistics field operations Preston Mosier said during a keynote at the Retail Supply Chain Summit in New York City on Thursday, according to The Wall Street Journal. The new process, which is being piloted at a “flow center” warehouse in Perth Amboy, New Jersey, uses the same inventory to replenish stores and fulfill online orders. In a shift to its current supply chain operations, the company is experimenting with sending a higher frequency of smaller shipments that are more tailored to the individual demands at the store and surrounding area. Mosier also noted that Target is creating a new warehouse management system to better integrate its distribution and fulfillment operations. Read more at Retail Dive.