Target has opened a 1.2 million-square-foot supply chain facility in Houston, called a "Receive Center," that's designed to store and distribute merchandise to stores and customers based on demand. The new facility takes in products from vendors and holds them until they are needed at other locations, reports Supermarket News.
The project, which is the first of its kind in the company's network, represents a $265 million investment and is expected to bring 185 jobs to the Houston area. It will serve six regional distribution centers and one flow center, helping replenish inventory that is later sent to stores.
Company officials said the facility is positioned between import warehouses in Georgia and Washington and is intended to add storage capacity closer to inland markets.
By holding goods earlier in the supply chain, the company can delay distribution until demand is clearer, reducing congestion at distribution centers and store backrooms. The added capacity is expected to be used for seasonal items, large products and goods with longer lead times.
The company also said the facility may help it secure certain high-demand products from vendors earlier in the year, including items typically sold during the holiday season.
The Houston Receive Center was designed using 3D visualization and simulation technology developed at the company’s XR Experience Center in Minneapolis, reports SN. According to the company, this is the first time the technology has been used throughout the full design process for one of its facilities, allowing teams to test layouts and operations in a virtual environment before construction.
Target currently employs more than 6,300 people across 40 stores and a sortation center in the region.