Transcription of Supply Chain Optimization - The Home Depot
1 2015 INVESTOR AND ANALYST CONFERENCES upply Chain OptimizationMark HolifieldExecutive Vice PresidentSupply Chain & Product Development2015 INVESTOR AND ANALYST CONFERENCEE nable Direct Fulfillment & Delivery Connecting Store to Website and Website to StoreSupply Chain Synchronization Connecting Merchandise From Supplier to Shelfto Customer Connecting Activities to Cost EfficiencySupply Chain Transformation Continues22015 INVESTOR AND ANALYST CONFERENCE3 Connecting network Infrastructure-Bulk Distribution Centers-Stocking Distribution Centers-Rapid Deployment Centers-Interline Distribution Centers-Stores-Direct Fulfillment Centers2015 INVESTOR AND ANALYST CONFERENCEC algary RDC & SDC On Track For 2016 OpeningCanada Distribution NetworkVaughan, Ontario RDC/SDCC algary, ABRDC January 16 Go LiveSDC March 16 Go LiveVaughan, ONRDC Live SDC December 15 Go LiveCalgary, Alberta RDC/SDCRDC = Rapid Deployment Center SDC = Stocking Distribution Center42015 INVESTOR AND ANALYST CONFERENCES trengthening Our Interconnected Capabilities5 THD StoresVendorsDirectFulfillment CentersPro DeliveryBig & Bulky DeliveryParcel DeliveryVendor DeliveryFlat Bed DeliveryGlobal View ofInventory& Fulfillment ChannelsGlobal View ofTransportation Assets2015 INVESTOR AND ANALYST CONFERENCEBuy Online Ship to Store (BOSS)
2 Via RDC6 Shipping CostDirect toCustomer$$$$$BOSS via RDC$Direct to Store$$$DFCRDCS tore2015 INVESTOR AND ANALYST CONFERENCED irect-to-Customer Volume Continues to Grow With Our Expanded CapabilitiesGrowth of Delivery72014A2015F2016T2017 TTotal Interline DeliveryStore DeliveryAppliance DeliveryOnline DeliveryNumber of Deliveries2015 INVESTOR AND ANALYST CONFERENCEE nhanced Delivery Capabilities82 Hour Window AvailableImproved SchedulingStore SimplificationBODFS EnablementCustomers know whenthey ll get their orderEnables a new way tobuy bulky productsEasier for THD associatesto schedule deliveries 2015 INVESTOR AND ANALYST CONFERENCENew Direct Fulfillment CentersTroy Township: Q3 2015 New Mechanized DFCsPerris:Q3 2014 Locust Grove.
3 Q1 2014 Speed To CustomerEnable Sales Growth92015 INVESTOR AND ANALYST CONFERENCEE nable Direct Fulfillment & Delivery Connecting Store to Website and Website to StoreSupply Chain Synchronization Connecting Merchandise From Supplier to Shelfto Customer Connecting Activities to Cost EfficiencySupply Chain Transformation Continues102015 INVESTOR AND ANALYST CONFERENCEOur Supply Chain Evolution11 SupplierSupplierRDCSYNC1979-20082008-201 42015+ Infrastructure Phase Optimization Phase2015 INVESTOR AND ANALYST CONFERENCET otal Lead Time -11 DaysSynchronize Flow From Supplier to Shelf Infrastructure PhaseInbound TransportationManufacturing PlantSupplier DCStoreRapid Deployment CenterPartially Full TruckShip 2-10 DaysTransport 1-5 DaysReceived 1-4 Days122015 INVESTOR AND ANALYST CONFERENCET otal Lead Time -5 daysSynchronize Flow From Supplier to Shelf13 Optimization PhaseInbound TransportationFull TruckShip Same Day Next DayLoad Stack PalletsTransport Actual Transit TimeLoad Full Trucks Multi-stopReceived Same DayShip Direct OpportunitiesManufacturing PlantSupplier DCStoreRapid Deployment Center2015 INVESTOR AND ANALYST CONFERENCEE ngineered Flow Shortens and Stabilizes Lead TimeHow We Are Doing It14 Engineered Flow Schedule THDO rderDayMonSUPPLIERS upplierShip HoursShipDayShipTime7am 9pmTue3pmCARRIERT ransitTime LT DaysWed5am 3 Ships NextDayVolatile, 6-12 daysStable3 daysLead Time (days)
4 Fiscal Week2015 INVESTOR AND ANALYST CONFERENCEC onnecting End to End15 Sync Engine Optimizes:Supplier Balanced shipping labor Inventory from closest shipping locationInbound TransportRapid Deployment CenterOutboundTransportStore Lowest rate Full truckloads Multi-stop pick-up Balanced lane capacity Optimize inbound with outbound Balanced labor capacity Balanced conveyor & equipment capacity Lowest rate Full truckloads Balanced lane capacity Optimize outbound with inbound Minimize pack up / pack down Minimize inventory touches & footsteps Planned freight flow2015 INVESTOR AND ANALYST CONFERENCECube Utilization of Inbound TrailersCube Utilization of Outbound TrailersCartons Per Labor Hour (RDCs)Reduce Logistics Cost Through Productivity16 Outbound ProductivityInbound ProductivityLabor Productivity2013A2015F2018T2013A2015F201 8T2013A2015F2018T2015 INVESTOR AND ANALYST CONFERENCED eliverables of a Best in Class Supply ChainSupply Chain Competitive AdvantageInventoryProductivityLogisticsC ostServiceto Stores & CustomersIn-Stock17
