Integration of the supply chain management is very important nowadays. There are three parts, risk and security management, performance measurement and green supply chain. Information technology, shared information and logistic are playing important role for integration the supply chain. (Wisner, 2009) In 2006, Home Depot did not focus their supply chain said Mark Holifield senior vice president of Home Depot. They pointed out that warehouse management was not the top of their improvement list. However, Home Depot realized that they faced a big problem due to their outdated technology for their supply chain (Maloney, 2009). In 2009 annual Home Depot report mentioned that transformation of the supply chain was so important. …show more content…
In the article, Mr. Gilmore reported on the aggressive transformation of the Home Depot’s supply chain from one where the suppliers mostly delivered directly to the stores to one where product flowed through distribution centers first. How does Home Depot manage their supply chain? There are separate external and internal.
In early 2000, the Home Depot already uses e commerce to increase their sales. The website able to keep buying online, tracing online products, pick up in store, and return in store programs.
In 2010, the Home Depot focuses on changing their supply chain system. They spent $250 million to invest on rapid-development centers (RDC) to distribute their inventory to stores (___). The RDC allowed the company to ensure inventory level are where they should be so that both shortages and overstocking of products can be avoided. In 2012, the Home Depot built new distribution centers and the enhancement of existing facilities to support direct to customer fulfillment.
In the 2013 sustainability integration report, the Home Depot pointed out that carbon footprint by combing the impact of their direct emission with that of purchased electricity and the transport of the supply chain.
A carbon footprint measures the impact of our actions on the environment. It measures the amount of greenhouse gases that the Home Depot produce through activities such as transporting products, electricity use that burns fossil fuel and owned vehicle use. In 2012, the truck emission reduced about 24 percent carbon emissions by direct to store shipment. Total 6 percent carbon reduction and 143,632 metric ton reduced. The Home Depot would use greenhouse gas reduction, distribution center energy use, packaging, distribution model and cube utilization in trucks to reduce waste. In 2010, Home Depot installed 81 water reclamation tanks. Each tank could save average 500,000 gallons per year and is ued to irrigate the garden center in the store. Also, they trained their associates to customers’ benefits of water and energy saving products. In 2012, The Home Depot recycled approximately 174,000 tons of used cardboard. The Home Depot was the first national retailer to provide CFL light bulbs and rechargeable battery recycling for consumers. Through this program, over 1.6 million pounds of CFL bulbs and 3 million pounds of rechargeable batteries were recycled. Their goal is reduced 20 percent energy use in store by 2015. The Home Depot will use more efficient lighting, replacing old HVAC systems with new energy star-rated units, using LED’s for exit lighting and much more. Total 8.0 billion kwh will save by efficient lighting and total savings is enough energy to power over 800,000 US homes for one year. Carbon Disclosure Project (CGP) is an independent not-profit organization working with business and cities to reduce greenhouse gases and drive sustainable water use and rate the Home Depot as a global leader. Also, the Home Depot understands of carbon
emissions and climate change risks and opportunities into core business. In 2013, the Home Depot got 99 points from CDP.
Reference
Mark Maloney 2009 http://www.dcvelocity.com/articles/20090801verticalfocus/
Dan Gilmore 2009 http://www.scdigest.com/assets/FirstThoughts/09-06-11.php
Bob Ferrari 2012 http://www.theferrarigroup.com/supply-chain-matters/tag/home-depot-supply-chain/
Joel D. Wisner 2009 Principle of Supply Chain A balanced Approach
2013 Sustainability report https://corporate.homedepot.com/CorporateResponsibility/Environment/Documents/Sustainability__Brochure_pages.pdf
2009 and 2012 Annual Report http://phx.corporate-ir.net/phoenix.zhtml?c=63646&p=irol-reportsannual