Target Practices Faster Fulfillment
Instead of using carriers to ship all its online orders, Target is building its own team of dedicated delivery personnel to get packages to customers' doors even faster, helping the retailer compete with its e-commerce rivals, says a CNBC report.
The new approach involves three companies that Target acquired: Grand Junction, Deliv, and Shipt. Target employees pick and pack orders at stores, and the items are transferred to a sortation facility multiple times per day. Grand Junction and Deliv's technology groups packages for the most efficient routes. Shipt then handles same-day delivery.
This strategy also helps Target reduce the number of packages that pile up in its stores, improve the customer experience, and make e-commerce orders more profitable, the report says.
Target plans to open five more sortation centers in dense, urban areas where multiple packages can be delivered to the same neighborhood.