Target has unveiled Proxima, a digital twin platform developed by its supply chain, product and engineering teams to improve inventory availability across stores. The system uses the same data and logic as Target's live inventory platform to simulate how decisions would play out before applying them in practice, helping teams reduce supply chain disruptions and test modernized processes with greater certainty.
In a pilot program with 63 fresh food items, Target improved on-shelf availability by 2.5% by simulating inventory flow changes and correcting issues before launch. Target developed the system in-house after finding that vendors lacked the capability to support the company's breadth of categories and the need to understand how new facilities would affect inventory flows. The platform is also generating insights that could inform future AI capabilities to help teams evaluate options, prioritize actions, and automate operational responses.
Target's move follows similar investments by competitors like Walmart and Lowe's, which have used digital twins to predict issues and optimize operations. The initiative is part of a broader effort to address legacy technology constraints that CEO Michael Fidelke identified as inadequate for current business needs.