JCPenney ponies up $40 million for supply chain upgrades

PLANO, Texas – As part of JCPenney’s $1 billion refresh strategy, the retailer is laying out $40 million to increase order efficiency and speed for online shoppers.

The investment is going to the company’s Nevada distribution center in Reno, Nev., where Penney’s is updating the equipment and infrastructure with the Joey Pouch sorting system. The computerized system includes new induction process technologies, a fully automated sorter to assemble orders and a new packing system that includes invoice and shipping label printing for each order in the station.

In addition to improving the customer experience, the upgrade will dramatically reduce associate training time and will allow for more flexibility in staffing across the facility.

There will be no impact to existing roles at the Reno DC due to the technology upgrade, according to JCPenney.

“When we announced our $1 billion reinvestment strategy last year, this is exactly the type of upgrade we envisioned for our supply chain. This new system will provide JCPenney with the best-in-class equipment and technologies to better support our associates and serve our customers,” said JCPenney CEO Marc Rosen.

The improvements to the Reno distribution center represent the latest progress in streamlining supply chain operations. Since last August, the company has also announced more than 100 store upgrades and its refreshed Rewards and Credit program as part of the reinvestment strategy.

See also:

  • JCPenney’s sales slip and profit plunges
  • JCPenney’s $1B refresh includes first new store in 8 years

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