Target Hires Supply Chain Executive From Apple
July 20 2016 - 4:53PM
Dow Jones News
By Loretta Chao
Target Corp. has added another supply chain veteran to its
ranks, this time from Apple Inc., as the retailer makes major
adjustments to its operations to serve growing online sales.
The Minneapolis-based retailer said Wednesday it has hired
Benjamin Cook, former Americas head of logistics and supply chain
for Apple, as senior vice president of global logistics, inventory
allocation and replenishment.
Mr. Cook "will lead the optimization of Target's inbound and
outbound supply chain processes, including carrier transportation
and last-mile delivery," in addition to overseeing inventory and
merchandise planning, the company said Wednesday. Inventory
management in particular is a key focus for Target, which has
struggled with out-of-stock items at its stores as online sales
represent an increasing portion of its revenue.
Executives have said they believe the key is to adjust its
inventory mix to customers' changing shopping patterns, which often
translate to fewer trips for smaller purchases. In its last
earnings call in May, Target Chief Operating Officer John Mulligan
said the company made additional inventory investments in
"essential categories" which improved its in-stock performance by
27% in the first quarter from the same period a year earlier.
The new appointment underscores the retailer's efforts to adjust
to a competitive environment facing retail companies as consumers
are doing more of their shopping online. Companies are investing in
new technology and overhauling old processes to make inventory
available to both offline and online customers, or a combination of
the two, which adds to logistics costs and complexity.
Part of that push is a drive by companies to recruit talent with
knowledge of everything from warehouse design to inventory
management, distribution, and big data, and to appoint supply chain
experts to higher-ranking positions.
Mr. Cook, who previously also held supply chain management
positions at Kimberly-Clark Corp. and Home Depot Inc., will report
to Arthur Valdez, which Target hired from Amazon.com Inc. earlier
this year to run its supply chain operations. He starts on July
24.
Amazon had sued Mr. Valdez in March, saying his new post would
involve disclosing "confidential and proprietary information to
Amazon's detriment and Target's advantage," but withdrew its
complaint in April.
A Target spokeswoman said Wednesday that "Amazon and Mr. Valdez
have resolved the issues raised in the action and the terms of that
agreement are confidential."
Customers "expect us to deliver product quickly and reliably,
and that means we need a supply chain that's increasingly fast and
precise," Mr. Valdez said in a statement about Mr. Cook's
appointment. "Ben's expertise and proven track record in cutting
cost and reducing complexity in the name of speed will be an
incredible asset to her team."
Write to Loretta Chao at loretta.chao@wsj.com
(END) Dow Jones Newswires
July 20, 2016 16:38 ET (20:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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