Lowe’s Plans Big Supply Chain Expansion

Thad Rueter
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Lowe’s Plans Big Supply Chain Expansion
Main goals of this effort goal include offering more same-day and next-day delivery offerings.

Lowe’s is planning a supply chain power surge.

The retail chain says that over the next 18 months it will open 50 cross-dock delivery terminals, seven bulk distribution centers and four e-commerce fulfillment centers.

More specifically, this push will include 20 cross dock terminals and one West Coast e-commerce fulfillment center in the second half of fiscal 2020. Together, the goal is to provide more same-day and next-day service offerings and enable faster e-commerce shipping across the country, the retail chain said. The upcoming logistics expansion will serve both DIY customers and contractors.

This October will bring the opening of that West Coast e-commerce fulfillment center in Mira Loma, California, Lowe’s said. That center will enable Lowe’s to improve its two-day delivery options so that the retailer can reach almost 100 percent of its nationwide customers. The Mira Loma warehouse will become the company’s second direct fulfillment center. The first opened in 2018 in Nashville.

This new supply chain road map follows previous work by Lowe’s over the past 18 months in opening more than 13 distribution and logistical facilities in places such as Chicago, Orlando, Riverside, California, and Columbus, Ohio.

These facilities of varying sizes allow the supply chain to nimbly respond to meet the various needs of customers from small parcel packages to larger items, like appliances, grills and outdoor power equipment, the retail chain said. About two years ago, in fact, Lowe’s announced a $1.7 billion investment to expand its distribution network through 2023. The company and its third-party partners will create nearly 5,000 jobs to support this initial expansion.

"Providing customers more ways to shop has never been more important, and today's update on the progress made in our supply chain transformation highlights our ongoing and unyielding commitment to enhancing the customer experience in this new era," said Don Frieson, Lowe's executive vice president of supply chain. "Opening these new facilities will allow our stores to operate more efficiently through improved flow management and inventory visibility and improve the customer experience with more predictable deliveries, better in-stock rates and faster fulfillment options."