The home improvement retailer will add 170 distribution facilities across the U.S. so that it can reach 90 percent of the U.S. population in one day or less, said Mark Holifield, the company’s executive vice president of supply chain and product development. The new sites will include dozens of direct fulfillment centers for next-day or same-day delivery of commonly ordered products, as well as 100 local hubs where bulky items like patio furniture and appliances will be consolidated for direct shipment to customers.
Holifield told a logistics industry conference last week that the retailer is realigning its supply chain to a changing retail landscape.
Customers “expect delivery to be free, they expect it to be timely,” he said. “Sometimes they want it fast, and are willing to pay for that. Sometimes they want it free, and they’re willing to wait for it. We need to have the right options there.”
The push comes as Home Depot is trying to tamp down transportation costs and improve inventory management as it tries to more closely integrate its growing online business with its network of about 2,280 brick-and-mortar stores.
