Lowe’s rozširuje sieť dodávateľského reťazca a otvára svoje druhé centrum priameho plnenia

Recommendation: Open the second direct fulfillment center now to shorten delivery times and strengthen Lowe’s west reach. In years past, Lowe’s built an interconnected network that proved resilient during covid shocks and major shopping events, which makes this expansion timely and necessary.

From a zamerať sa on speed to tight integration across the supply chain, the new center will link suppliers, distribution centers, and stores with tighter handoffs, resulting in faster restocks and a broader sortiment for online and in-store customers. The arrangement favors courtesy in order handling, helping them meet demand even during peak events.

The model pointed to improved results by moving from a siloed approach to a unified network. It aligns time and inventory with real-time demand signals, keeping the sortiment aligned and reducing miss-outs for customers in west markets.

Investments described as a billion-dollar scale reflect Lowe’s commitment to a long-term supply chain strategy. The project adds capacity that is certain to improve time-to-delivery, increase resilience, and help them meet customers where they shop most–online and in stores.

Viac ako years of data, leadership notes that the covid era underscored the need to diversify nodes; the new center bridges the gap between open facilities and demand swings, while keeping costs under control and margins intact. The result is a more interconnected network that remains needed as consumer habits evolve.

In practice, retailers and suppliers will see certain results: faster time-to-delivery, improved stock availability, and a more nimble response to events that disrupt the supply chain. Lowe’s continues to open more options for customers while maintaining courtesy and transparency in communications with partners and teams.

Lowe’s Expands Supply Chain Network and Gopuff Leadership Update

Recommendation: open a second direct fulfillment center this week to cut last mile time and accelerate same-day shopping across the west and other regions, using a custom, cross-network model to expand capacity and their reach to shoppers.

The expansion hinges on a through-line of automation and cross-docking, linking Lowe’s supply chain to Gopuff’s rapid delivery network. The model enables more items made in the country to move quickly, supporting a stable revenue trajectory and giving consumers a broader assortment while preserving cost efficiency across the chain. This plan supports expanding capacity across regions.

Ellison drives the strategic vision at Lowe’s, while Unglesbee reports that Gopuff has updated its leadership, naming a new chief operations officer to oversee network optimization and collaboration with Lowe’s. This leadership update signals a closer, cross-brand effort to improve shopping speed and fulfillment resilience.

• Across the chain, the new DFC adds capacity to serve the west and other regions, reducing last mile times for essential items and helping shop demand there.
• Through automation and a custom, last-mile-ready model, the partners can expand the assortment in key categories and maintain same-day shopping for busy consumers.
• The plan targets a billion-dollar revenue opportunity by improving fill rates and average order value across country markets and through the online shop on lowescom.
• Ginas will pilot local replenishment programs to tailor inventories to regional needs, reinforcing inclusivity in product availability and supplier involvement.
• Others in the sector can study this approach to adapt to different channels and geographies.
• Getty photo coverage accompanies the announcement, illustrating a collaboration-focused approach to a broader economy.
• This strategy strengthens consumers’ access across major corridors and smaller towns, aligning shopping habits with needed options across the country.
• Through expanding partnerships, Lowe’s and Gopuff aim to keep the same level of service even during peak weeks and weather-related disruptions.

Analysts project a billion-dollar incremental revenue potential as the network scales, with benefits spreading across lowescom, partner retailers, and suppliers. The move also supports inclusivity by ensuring regional assortments reflect local needs, while allowing ginas and others to participate in co-investment opportunities that bolster the economy.

In practice, retailers should monitor cross-border flow, invest in custom fulfillment technology, and align leadership updates with a clear, measurable roadmap. The result is a more resilient, consumer-friendly chain that delivers faster, broader shopping options for millions of shoppers.

Lowe’s Direct Fulfillment Center Expansion: Operational Details and Customer Impact

Adopt a two-site direct fulfillment model with a focused speed objective to deliver next-day options for high-demand items and improve the search experience for customers shopping Lowe’s online.

Operational details: The new center sits in california, spans 120,000 square feet, and includes 20 dock bays to support distribution and last mile planning. It runs on a two-shift schedule, with updated WMS that reduce touches and improve accuracy, delivering throughput faster than before.

Customer impact: Improved delivery estimates, enhanced in-store integration, courtesy message if a delay occurs, and more predictable shopping windows. same-day and next-day options expand growth and reduce friction for customers visiting the store or ordering online for home projects.

Operational approach: The center maintains a lean housing layout that prioritizes fast put-away, rapid order consolidation, and cross-docking with the store network to operate more efficiently than a traditional single-site model. It focuses on last-mile readiness for core SKUs and uses a simple model for stock reallocation to reflect demand patterns under current constraints.

Financial and risk factors: By shortening last-mile routes and reducing handling, the updated strategy lowers transportation costs and increases margins. Key factors include labor availability, limited dock capacity, real estate costs, and system downtime; when conditions change, the chain grows. taken together, these steps reinforce resilience and help california operations inform future expansion.

Next steps: align automation with store teams, update the courtesy message to reflect real delivery windows, monitor updated metrics, and share progress with them through transparent reporting. The approach would cohere with in-store operations under the same distribution strategy, supporting growth and customer satisfaction.

Location, capacity, and launch timeline of Lowe’s second Direct Fulfillment Center

Recommendation: place Lowe’s second Direct Fulfillment Center in the Chicago metro area, such as Elk Grove Village, IL, to expand next-day coverage and keep these operations nimbly interconnected with the existing network. This location supports housing a broad mix of items–from compact essentials to bulky appliances–driving faster delivery and courtesy to customers while reducing transit times across multiple markets. The pandemic-era resilience mindset and updated risk assessment guide this choice, ensuring the site can adapt to demand surges and supply shocks.

Location and capacity details: the facility targets roughly 1.25 million square feet of space, with about 1.0 million square feet for high-bay storage and 250,000 square feet for processing and staging. Automation includes 60 conveyors, 20 robotic pick modules, and an integrated sortation system designed to handle up to 70,000 orders per day, with scalable peak throughput for peak periods. This footprint enables the company to provide coverage during next-day windows across a broad swath of the Midwest and Northeast, reinforcing the interconnected network that underpins retail and home-improvement activity; partnerships with providers like gopuff will extend reach into multi-channel delivery.

Launch timeline: construction is planned to begin in mid-2025, followed by a staged ramp that starts with a pilot SKU set in early 2026 and reaches full throughput by mid-2026. The timeline is subject to permitting and supplier schedules but the latest plan remains on track, истоочник: updated filings indicate the plan. Techtarget coverage has noted this shift as part of Lowe’s broader supply chain modernization.

Strategic context: weve designed the site to support a first wave of orders with high reliability and never compromising on service. This effort aligns with Lowe’s strategy to expand the supply chain, provide next-day options for popular items, and keep retail logistics highly interconnected. The president notes that the initiative, backed by updated investments, will power housing and home-improvement activity while strengthening the company’s nationwide presence.

How the new DC affects delivery speed, stock availability, and order fulfillment options

Recommendation: Route high-velocity SKUs through the Riverside DC to shorten delivery times, raise stock availability, and expand flexible order options for customers and stores. The interconnected facility drives improvement in replenishment, strengthens the outlook for continued retail growth, and reinforces inclusivity across markets.

Delivery speed gains stem from closer proximity to key markets, faster inbound arrivals, and more efficient cross-docking. By prioritizing high-demand offerings in the model, the DC can shorten time-to-store for those items and improve rates for store-to-door fulfillment. That means those stores and customers will see faster restock cycles across the assortment, including core categories that drive traffic.

Stock availability rises as the DC supports clearer inventory positioning and near real-time visibility. The network enables faster replenishment for high-demand SKUs, improving fill rates and reducing backorders across stores, particularly for top offerings and fast movers. In turn, this supports a steadier supply in a volatile economy, and this approach never compromises service to stores or customers.

Order fulfillment options expand beyond in-store pickup. The DC supports ship-from-center, ship-to-home, and enhanced BOPIS, with rules to reroute orders to stores when needed. Customers in riverside and surrounding areas can choose curbside pickup or standard home delivery, while stores gain a buffer to meet demand spikes. This flexibility improves customer experience and supports a broader assortment of offerings. This addresses the need across channels.

Operations run on a scalable model that uses cross-docking, lane optimization, and data-driven merchandising. The unglesbee model guides lane decisions and helps align replenishment with store needs. Rates and other KPIs are tracked in real time, as noted by the analytics team, and the companys planning teams adjust allocations over time to deliver efficiently. The results include faster throughput and a more connected network among stores, distribution centers, and suppliers, which strengthens growth prospects and creates sustained jobs.

источник: companys press materials. What this means for managers is that the new DC supports continued retail momentum, interconnected operations, and an inclusive approach to service across the economy. getty context notes how such models can improve service levels, including for those in underserved markets, while delivering measurable results for stores and suppliers.

The shift to the Riverside DC strengthens the chain’s model, increases efficiency across the network, and positions the companys stores for quicker responses to demand, driving improvement in customer experience and regional job growth.

Automation, technology stack, and integration with stores and suppliers

Adopt an API-first, modular technology stack that unifies ERP, WMS, TMS, and store systems across Lowe’s chain–from stores to direct fulfillment centers and supplier networks–so orders route automatically for next-day delivery where feasible. Build a centralized data fabric to ensure real-time flow of inventory, orders, and shipments, delivering in-stock signals across these nodes and enabling agile replenishment decisions that lead to improvement in shopping reliability.

Implement a four-pronged integration approach: API-based connectivity with suppliers (including gopuff), a unified master data model, real-time inventory visibility and demand sensing, and automated order orchestration that balances front-end store needs with direct fulfillment.

Connect the front of the store to the digital ecosystem via a single API layer that links POS, curbside, app shopping, and in-store signage, so promotions and inventory signals align with customer flow and customers can pick up orders without delay.

Establish a cloud-based data lake with governance and a common data model to reduce cycle times and improve collaboration with suppliers, distribution centers, and stores–this supports increased efficiency across the four lanes of flow, delivering the needed data quality for faster decisions.

Anticipate constraints: limited bandwidth in some markets means the rollout must be staged, and certain older stores still need infrastructure upgrades. The plan emphasizes inclusivity by designing tools and training that work for all associates, not only tech-savvy staff.

Scale and funding: the initiative is a multi-billion-dollar program with seven prioritized markets to demonstrate value before expanding to the wider network soon. The blueprint targets faster throughput, improved order accuracy, and better in-stock levels.

Techtarget analysis confirms that integrated automation can boost flow and service levels; Lowe’s will track next-day performance, in-stock accuracy, and direct deliveries, while keeping a close eye on cost-to-serve and a measurable improvement in operations over time. They noted that success hinges on governance and data quality.

At the executive level, the president has increased efforts to align technology, stores, and suppliers; these actions should still deliver faster shopping experiences, and they will note gains in in-stock rates and front-line productivity as the network grows.

Cost, capital investment, and expected ROI for the expansion

Recommendation: Lowe’s expands its supply network with a two-site rollout, starting with the riverside front facility, and targets total capex around $360–420 million with a 4-yr payback horizon. This plan accelerates distribution service, supports consumer demand, and strengthens the retail network across the industry.

Capex breakdown covers land or lease costs, building out DCs, automation systems (sortation, conveyors, robotics), software integration (WMS/ERP), power upgrades, energy efficiency, and workforce onboarding. The structure lowers handling time and errors, setting a scalable backbone for the supply chain in riverside and the second site.

ROI drivers include higher throughput, lower last-mile cost, better inventory margin, and improved service levels for retail buyers. We target an after-tax IRR in the mid-to-high teens and a 3.5–5 yr payback, subject to demand fluctuations and input costs. With ramp in volumes and disciplined cost management, annual operating income could rise by tens of millions by year four, lifting margin on incremental volume across the distribution network.

Risks focus on changing demand, supply constraints, and energy price moves. To mitigate, adopt modular construction, staged automation, and solid vendor partnerships; keep the riverside site ready to scale and adjust the second center if required. unglesbee analysis flags a sensitivity to ramp speed and logistics cost, reinforcing the case for a flexible, power-efficient layout that serves buyers in retail and commercial segments.

Gopuff taps former Amazon exec to lead North American operations: roles, priorities, and governance

Recommendation: Align governance with cross-functional leadership to promote demand visibility, improve margins, and streamline operations across markets in North America.

The incoming leader will own North America operations, retail partnerships, and the consumer experience, balancing direct-to-consumer and retailer channels to serve a country-wide footprint. Calvin and Kaarin will co-chair the North America governance council to ensure cadence, accountability, and fast decision-making, with a clear message to both teams and partners. The setup emphasizes cross-functional work under a single operating model to scale efficiently.

Key priorities include standardizing demand planning from the field, streamlining cross-market execution, and accelerating fulfillment through a centralized hub. The tech stack will support improved data flows, minus redundant steps, with an emphasis on equipment tracking and faster responses to customer demand. The approach incorporates input from techtarget coverage and aligns with retailer-like disciplines such as lowescom execution, while maintaining focus on margins and customer satisfaction. The plan looks to reach measurable improvements within the first year and to test expansion into new markets gradually.

Across markets, the new structure should enable less complexity in operating routes while maintaining power to adapt to different consumer needs. The leadership will promote a steady rhythm and ensure that the last-mile network remains reliable as demand evolves across the country.