Dive Brief:
- Target appointed former Amazon operations manager Preston Mosier to oversee its direct-to-consumer fulfillment centers, the company announced Aug. 9. He will report to another Amazon veteran, Arthur Valdez, who leads the retailer's supply chain and logistics operations.
- Mosier is an expert in direct-to-consumer delivery, Target says, "including optimizing last-mile operations and using data and automation to move product more efficiently."
- Mosier helped build direct-delivery capabilities during his decade in various leadership positions at Amazon. Most recently, as an executive at Liquidity Services, he led efforts to improve supply chain profitability and capacity for large technology and retail businesses.
Dive Insight:
Target COO John Mulligan said the company's growth hinges on its ability to enhance key aspects of its business, "starting with the supply chain."
In announcing Mosier's hire, Valdez said customers want "to get what they ordered quickly, accurately and without hassle." Bringing the online fulfillment function under a specialized leader "will enhance our direct-to-guest operation" and help Target put orders in customers' hands faster.
However, Retail Dive's coverage of brick-and-mortar retailers' shift to e-commerce suggests the transition to a direct-to-consumer supply model is lengthy and expensive. Walmart, for example, recently closed a $3.3 billion acquisition of Jet in order to expand its consumer base, which has suffered from Amazon's growth.
