Lowe's Adding Fulfillment Centers, Large-Appliance Sites for Faster Delivery
August 12 2020 - 4:31PM
Dow Jones News
By Jennifer Smith
Lowe's Cos. is beefing up its logistics network, with plans to
add dozens of distribution and shipment-handling sites as part of a
$1.7 billion overhaul aimed at speeding orders to customers of the
home-improvement retail chain.
Lowe's said Wednesday that it would open four additional
e-commerce fulfillment centers over the next 18 months, including a
direct fulfillment site in Mira Loma, Calif., set to open in
October to enable two-day delivery to nearly 100% of its
customers.
The Mooresville, N.C.-based company also plans to open seven
bulk distribution sites for large products such as appliances and
barbecue grills, along with 50 cross-dock terminals where big items
can be placed on delivery trucks bound for customers instead of
sending them to retail stores.
Lowe's is in the midst of a five-year push to update its supply
chain to meet growing digital demand and address weaknesses such as
out-of-stock problems its executives have said weighed on growth.
The company is retooling its hub-and-spoke distribution network as
it transitions from a store-based delivery model, and it is
upgrading its technology to streamline the flow of goods and
improve inventory management.
"Opening these new facilities will allow our stores to operate
more efficiently through improved flow management and inventory
visibility and improve the customer experience with more
predictable deliveries, better in-stock rates and faster
fulfillment options," Don Frieson, Lowe's executive vice president
of supply chain, said in a statement.
The effort, launched in 2018, comes as rival Home Depot Inc. is
also revamping its distribution strategy to adapt to changes in how
consumers shop.
Atlanta-based Home Depot plans to add more online fulfillment
centers and local hubs for bulky items as well as dozens of
direct-fulfillment distribution sites for next-day or same-day
delivery of commonly ordered products.
The coronavirus pandemic is boosting e-commerce as homebound
consumers order more products online and busy themselves with
do-it-yourself projects during quarantine lockdowns.
Dave Sebastian contributed to this article.
Write to Jennifer Smith at jennifer.smith@wsj.com
(END) Dow Jones Newswires
August 12, 2020 17:16 ET (21:16 GMT)
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