SCD: Target taps into tech acquisitions as it expands supply chain network

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Sourced from SUPPLY CHAN DIVE:

Dive Brief:

– The expansion of Target’s sortation and distribution center network, which the retailer had previously announced, will rely on multiple acquisitions it has made in recent years, COO John Mulligan said on the company’s earnings call Wednesday.

– As it opens up more sortation centers, the locations will use technology from Grand Junction as a way to “optimize the selection of delivery partners,” Mulligan said. Target acquired Grand Junction, a software platform that helps retailers figure out the best delivery method and track carrier performance, in 2017.

– The technology Target acquired from Deliv last year will allow it to generate routes for orders to make its Shipt delivery service more efficient, Mulligan said.

Dive Insight:

Target’s use of acquired assets highlights the long process of supply chain transformation that the retailer has been undergoing. Each deal became part of a larger plan.

The retailer is investing heavily in its supply chain on either side of its retail locations: new distribution centers to improve replenishment at stores, and new sortation centers to improve order fulfillment for consumers.

In March, Target announced plans to open two distribution centers by the end of 2021, one in Chicago and another in New Jersey. On Wednesday, executives increased that number to four by the end of 2022, but they didn’t provide a location for the additional facilities…

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