Target’s Behind-the-Scenes Move to Improve its Shopping Experience

Target Corp. has just added a new link to its supply chain by cranking up operations at its first Receive Center in Houston. The Minneapolis-based retailer described the center in a news release as “a new type of facility in our supply chain network that intakes directly from our global vendors and holds the product until it’s needed elsewhere, replenishing inventory in response to store and guest demand.”

Target’s the proceeded to detail its rationale for creating the 1.2 million-square-foot facility: “Our new Receive Center will service six regional distribution centers and one flow center, helping replenish the inventory that then goes to stores. Positioned between our Import Warehouses in Georgia and Washington, it complements those coastal facilities by adding regionally based capacity — helping us get products to the right place faster and at a lower cost thanks to shorter distances traveled. By adding capacity at an earlier stage in our supply chain, we can wait to distribute inventory until the moment it’s needed, ultimately preventing our distribution centers (and store backrooms) from getting overcrowded.

“Expanded capacity like this is particularly beneficial for items that are seasonal, bulky, challenging to forecast, or have long lead times. And it also gives us the ability to secure popular items earlier on from vendors — like trending toys for the holiday season — ensuring that we reliably offer the most relevant assortment when the time comes.

In its coverage of the new center, TheStreet said “by upgrading its supply chain [with the addition of the receive center], the retailer is betting that a better store experience actually begins with more efficient logistics behind the scene … If this facility can finally clear the aisles while keeping the shelves stocked, Target might just give its customers a reason to fall in love with the in-store experience all over again.”

Click here for more from Target about its receive center.