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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)

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