Lowe’s is bringing back dedicated storage warehouses as part of a supply-chain upgrade, reports The Wall Street Journal. The home-improvement retailer is opening so-called import distribution centers to store off-season goods such as outdoor furniture.
Lowe’s is using the buildings to free up capacity in its other logistics facilities and to help reduce the number of markdowns on inventory sitting in the wrong location. The strategy differs from other companies that are mostly focused on facilities that can quickly ship e-commerce orders.
Many retailers are adjusting their supply chains to improve efficiency and get goods to customers as quickly as possible. Lowe’s is adding e-commerce fulfillment centers as part of a $1.7 billion investment in its operations, but the retailer is also opening more import distribution centers, with the sixth one opening later in March in Pennsylvania.
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