Target’s Proxima shows AI supply-chain twins are becoming decision infrastructure
Target is using a digital twin called Proxima to simulate middle-mile inventory decisions before teams move stock across the network. Retail Dive reports that the system mirrors the retailer’s inventory-positioning logic instead of acting as a separate planning layer.
The measurable signal is strong. In a pilot covering 63 fresh-food items, Proxima helped Target model inventory-flow changes before launch and improved on-shelf availability by 2.5%. The same system also simulated inventory moving through Target’s new 1.2 million-square-foot Houston Receive Center with about 98% accuracy before opening.
Seller takeaway: AI is moving deeper into replenishment and exception handling, so cleaner demand, lead-time, and inventory data will matter more in partner networks.
1August 18, 2026 508 1
