The big home improvement retailer announced it was buying Simpl Automation to strengthen its distribution efficiency.
The deal follows a test Depot did with Simpl in its Locust Grove, GA distribution center, which it said resulted in faster pick speeds and cycle times, with fewer product touches. Terms of the deal were not disclosed.
Home Depot said the acquisition will help advance its same-day and next-day fulfillment strategy while also improving worker safety.
“By bringing Simpl’s industry-leading automation into our operations, we’re accelerating the flow of products through our distribution network to deliver with unprecedented speed and precision,” Amit Kalra, Home Depot senior vice president of supply chain, said in the release.
The acquisition is part of the giant retailer’s multi-year expansion of its distribution and delivery capabilities. It said that as of December, it had added nearly 200 facilities to fill various roles, such as fulfillment of high-demand SKUs and the handling of bulky building materials.
Speeding up internal supply chains and getting goods to customers has become a big priority across the entire retail spectrum with companies like Walmart and Amazon making similar investments and acquisitions over the past few years. No doubt, there will be more of this to come.
Image: Simpl Automation
