Target Acquires Transportation Tech Firm Grand Junction; Increases Competitiveness With Amazon
MINNEAPOLIS, MN - As the retail landscape turns towards using quick delivery and pickup times as a way to differentiate from the rest, Target has announced a new acquisition that puts it right on Amazon’s heels. Earlier this week, Target announced it will acquire transportation technology company Grand Junction in an effort to improve and expand its delivery capabilities and, by extension, better compete with Amazon.
“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.”
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 that will focus on digital channels and supply chain. The retailer also recently invested in supply chain start up Inspectorio as a way to bring further transparency to its supply chain operations. Valdez and fellow Amazon-alum Preston Mosier were also both recently brought on in high-ranking, supply chain-focused positions.
“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.”
Now, with the acquisition of San Francisco-based Grand Junction, Target seems to be more focused on supply chain than ever. 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 at AndNowUKnow 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 for continued updates.
