The retailer wants to cut transportation costs as well, for example using cars and vans to deliver smaller orders in some markets. For professional customers, the retailer is building 40 additional flatbed distribution centers to handle larger building material shipments.
Shoppers “expect delivery to be free, they expect it to be timely,” said Mark Holifield, EVP of Supply Chain and Product Development, who discussed the plans at 3PL & Supply Chain Summit, which was held June 5 to 7. The supply chain investment is part of a larger $11 billion plan to “re-engineer” the entire company and prepare it for the future of retail.
The growing emphasis on e-Commerce will by assisted by the hiring of an additional 1,000 technology professionals in 2018. Other aspects of the $11 billion plan include melding the company’s digital and physical shopping experiences and improving in-store checkout speed.