Dive Brief:
- The Home Depot has acquired warehouse technology company Simpl Automation as the home goods retailer looks to strengthen distribution center speed and efficiency, according to a news release Wednesday.
- Terms of the deal were not disclosed. Simpl Automation offers automated storage and retrieval systems that can handle goods-to-person and person-to-goods workflows, along with vertical lift modules for high-density storage, according to the company’s website.
- The acquisition follows a pilot of Simpl Automation’s technology at Home Depot’s distribution center in Locust Grove, Georgia. The pilot resulted in faster pick speeds and cycle times, in addition to fewer product touches, the release said.
Dive Insight:
Acquiring Simpl Automation will help Home Depot advance its same-day and next-day fulfillment strategy while also improving worker safety, per the release. The retailer aims to also “house a broader assortment of high-demand products closer to the customer, which allows faster, more seamless delivery and expanded product availability” as a result.
“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 SVP of supply chain, said in the release.
Those anticipated improvements fall in line with the supply chain priorities Home Depot has emphasized amid a multi-year expansion of its distribution and delivery capabilities. As of December, Home Depot has added nearly 200 facilities to fill various roles, such as fulfillment of high-demand SKUs and the handling of bulky building materials.
Other companies have also leaned on acquisitions to accelerate supply chain improvements. In 2022, Walmart acquired e-grocery automation firm Alert Innovation to bolster its fulfillment capabilities and invested in automation technology company Symbotic.
Similarly, Amazon is no stranger to deals meant to benefit its supply chain. Robotics startup Canvas Technology and mechatronics equipment supplier Cloostermans are among several acquisitions the e-commerce giant has made over the last decade.
