Minneapolis-based Target Corp. is reportedly testing a new supply chain management approach that could shorten the time of its order fulfillments from days to hours.
The new strategy could potentially alleviate stores from having to store merchandise while also keeping shelves stocked. The method, being tested now in its New York stores, focuses on sending smaller but more frequent shipments of merchandise to stores from its Perth Amboy, N.J., warehouse, which are aimed at minimizing the time between order and delivery, according to Forbes.
If the program is successful, it plans to roll it out across its stores nationwide. The strategy will be especially beneficial for smaller, flexible-format stores that don’t require in-store “warehousing,” while also providing convenience to shoppers with shorter product wait times.