“We are living in a time-sensitive click-and-ship marketplace, yet many retailers still find themselves scrambling to optimize their omnichannel strategies,” laments Matt Clark, COO of Corcentric, an accounts payable solutions firm. Ever since Amazon mastered the omnichannel market, other companies are playing catch up. This article tackles the topic of omnichannel through a case study. It examines the efforts Home Depot has taken to improve its omnichannel delivery options. It showcases Ronnie Wendt’s ability to deliver a comprehensive piece about a difficult supply chain topic through a case study.
A recent SPS study highlights that more retailers are jumping into the omnichannel sea. However, Home Depot has swam in the retail channel-infested waters a bit longer. The do-it-yourself (DIY) home repair giant invests in deployments that give consumers what Stephanie Smith, vice president of direct fulfillment and delivery, calls an interconnected retail experience.
Home Depot took a phased approach to its interconnected strategy. The company began in 2011 with its buy-online-return-in-store (BORIS) process, then added buy-online-pickup-in-store (BOPIS), as well as buy-online-and-ship-to-store (BOSS). In 2016, it added the BODFS option.
The company’s omnichannel efforts also include its Supply Chain Synchronization Project (Sync), which enables workers to see the products on every inbound truck. It is hoped that Sync will grow inventory turns from 4.8 times in 2015 to a targeted 5.7 times by 2018. The company’s COM system, which is live in 2,000 U.S. retail stores, also plays a role by enabling employees to track where an order is in the manufacturing and delivery process.
Home Depot also built three direct fulfillment centers in strategic locations—one outside of Atlanta; one in Troy Township, Ohio; and a third in Perris, California. Products from these facilities can reach 90 percent of the United States within two days, which Smith says helps the company fulfill its delivery speed promise.