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Target Taps Former Amazon Exec to Lead Supply Chain and Logistics

Target is stepping up its supply-chain game.

The Minneapolis-based retailer on Monday announced it had hired Arthur Valdez as executive vice president and chief supply chain and logistics officer, effective Mar. 28.

Valdez, who has spent the last 16 years at Amazon in a variety of leadership roles, most recently as vice president of operations, will lead Target’s supply chain transformation including planning, distribution and transportation. He also held positions at Walmart and Kmart during his 20-plus year retail career.

“While we’ve made significant progress in improving our operations, Target’s growth hinges on our ability to enhance the fundamental aspects of our business, starting with the supply chain,” John Mulligan, executive vice president and chief operating officer, said in a statement. “Arthur’s leadership and experience will be a tremendous asset as we continue to drive improvements in end-to-end processes including leveraging our almost 1,800 stores to deliver a seamless experience for our guests.”

Target recently posted a 0.6% decrease in fourth-quarter sales to $21.6 billion from $21.8 billion but said that digital sales grew 34 percent, contributing to a 1.9% rise in comps. The retailer attributed this increase to free-shipping offers and site-wide discounts in the holiday shopping season, noting that 30 percent of e-commerce orders were fulfilled from stores and a record number of online customers picked up their purchases in person.

“Because upstream variability in the supply chain hampers our ability to keep our stores in stock and provide tight shipping windows to our guests, a key pillar of the team’s work is focused on improving freight flow through the supply chain,” Mulligan said on an earnings call last week.