There has been quite a bit of hearsay on the power of transportation technology in retail, and who will nab the lead. With its latest acquisition, Target is making one leap forward towards first place.
With the pending purchase of transportation technology company Grand Junction, Target has shown an effort to improve and expand its delivery capabilities–putting it right on Amazon’s heels.
“Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” said Arthur Valdez, Target’s Executive Vice President, Chief Supply Chain and Logistics Officer. “This acquisition is part of Target’s ongoing efforts to strengthen Target’s supply chain to provide greater speed, reliability, and convenience for guests.”
It seems a renewed interest in spicing up its food operations is not all the retailer has in mind.
In recent months, Target has done much to invest in transforming its supply chain: earlier this year, CEO Brian Cornell announced a $7 billion investment plan focusing on digital channels and supply chain. It also recently invested in supply chain start up Inspectorio, covered in our sister publication AndNowUKnow, to bring further transparency to its supply chain operations.
Now, with the acquisition of San Francisco-based Grand Junction, Target looks more focused on supply chain than ever.
“Target is seizing a tremendous opportunity to leverage local delivery as a retail differentiator,” said Rob Howard, Grand Junction’s Founder and CEO, who will now become a Vice President of Technology at Target. “We’re thrilled about helping to pursue this opportunity, and to join Target at this unprecedented time in retail.”
According to a press release, Grand Junction offers a software platform that’s used by retailers, distributors, and third-party logistics providers to manage local deliveries through a network of more than 700 carriers. As of now, Grand Junction is working with Target on its same-day delivery pilot at Target stores in New York, and when the deal is closed, the retailers says that Grand Junction’s employees will officially become Target team members.
We have a feeling this won't be the last news we hear out of Target on the topic of shoring up supply chain efficiencies, so stay tuned to Deli Market News for continued updates.