Home Depot Supply Chain Management 

Home Depot is the world’s leading home décor and improvement Retail Company. The company invests a significant amount of resources and capital in its supply chain; approximately 1.2 billion dollars in 2017. In fact, the company is establishing more than 150 SC facilities across the country. Today, we’ll discuss Home Depot supply chain management and its SCM strategies.

Some of the main products and services of home depot supply chain management are as follows;

• Rental equipment
• Home improvement installation services
• Tools
• Operations products
• Repair and maintenance
• Décor products
• Lawn and garden products
• Home improvement goods
• Building material

Key statistical facts and figures about Home Depot are as follows;

• Home Depot has a network of 2317 stores across the US, Mexico, Canada, and Puerto Rico
• The average store size is 104,000 square feet
• Invested 1.2 billion US dollars in supply chain management in 2017
• Opened up 150 new SC facilities across the country

Some of the main reasons behind implementing revolutionary SCM strategies of the company are as follows;

• Changing customers shopping trends and preferences in terms of shopping, however, whatever, and whenever they want
• The objective of making delivery possible on the same day or the next day for the US population
• Establishing networking in 150 new markets
• The Focus of SCM is to satisfy the needs and wishes of customers

Home Depot Supply Chain Management – Strategies 

Some of the key Home Depot supply chain management strategies are as follows;

Growth & Expansion

Home Depot is investing capital resources to expand its SC network; it allows the company to achieve reliable, efficient, and speedy delivery services for home improvement and renovation. While managing the cost and expenses, it helps the company to amplify the interconnected shopping experience for customers.

Meeting Customer Needs

The investment in the SC network and channels helped Home Depot to satisfy customer needs and requirements, despite facing all the SC challenges and difficulties. Home Depot has a very advanced and sophisticated inventory management system and it helps the company to predict and replenish most of its store goods and products. The company employs its SC network and distribution points to satisfy the needs and wishes of customers.

Distribution Centers

The SC network of Home Depot comprises various distribution center platforms in Mexico, Canada, and the US to satisfy the needs and wishes of customers based on their delivery, transportation, location, and product type requirements. The distribution centers of the company consist of the following;

• Direct fulfillment centers
• Bulky distribution centers
• Stocking distribution centers
• Rapid deployment centers

Automation Technology

In order to achieve efficiency and quick movement of products, Home Depot has implemented automated technology at its distribution centers as a part of its SC expansion project. The retail brand is amplifying its SC network by investing a significant amount of resources to provide reliable and speedy delivery services to its customers. However, the focus of the company is to offer a next-day delivery service to approximately 90% of the US customers for bulky and big products.

Omnichannel Fulfillment Centers

The delivery service of Home Depot comprises omnichannel fulfillment, it performs market delivery operations and delivers the products and goods directly to the customers. It serves as a local hub to unify freight to dispatch the final product to the customers by focusing on the appliances. The retail company also has flatbed distribution centers, and they help the company to manage large and bulky items like lumber on flatbed trucks.

Delivery Fulfillment

Along with fulfillment and distribution centers, Home Depot takes advantage of its store network for delivery fulfillment location, return, and customer pickup. Having a premium real estate footprint helps the company to have a competitive edge and distinct structure.

Market Delivery Centers

Home Depot has got approximately more than 7 cross docks to manage local deliveries of products and goods like windows, doors, appliances, and other products that are large and bulky. The retail company establishes them in the top markets and employs them to implement a hub-and-spoke delivery model.

Market Delivery Operations

Home Depot has a network of roundabout 100 delivery operations in smaller markets. They also have the capability to manage larger items and develop smaller cross docks. However, it helps the company to make the next day delivery possible in the country.

Conclusion: Home Depot Supply Chain Management 

After an in-depth study of Home Depot supply chain management; we have realized that SCM plays a significant role in the growth and success of the retail company. If you are learning about the Home Depot SCM strategies, then you should keep in mind the abovementioned market delivery operations, delivery centers, delivery fulfillment, omnichannel fulfillment centers, automation technology, and distribution centers.