Home Depot's Operation Management

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Company Background
Founded in 1978 by Bernie Marcus and Arthur Blank, The Home Depot is a one stop shop, do-it-yourself home improvement retail store. The first two Home Depot stores opened in Atlanta, Georgia in 1979 as warehouses, each occupying a space of 60,000 square feet (The Home Depot, 2013). When it opened, The Home Depot was the largest hardware store, selling over 25,000 different products and offering various home improvement services (The Home Depot, 2013). From its inception, The Home Depot has provided the best customer service in the industry, as associated guide customers through various facets of home improvement projects. The company is able to provide such service because its associates attend product training, and offers its customers various free home improvement clinics. The Home Depot has transformed the home improvement industry offering the customer its expertise while also providing significant customer savings. ONE TOO MANY SENTENCES!!!
Currently, The Home Depot operates over 2,200 stores throughout the United States, Canada, China, and Mexico with each store averaging 105,000 square feet. Each of its stores carries up to 40,000 different kinds of inventory, which include building materials, home improvement supplies, appliances and lawn and garden products, and offers 250,000 other products, which can be special ordered. The Home Depot also offers its signature “lowest price guarantee” that offers to beat the prices of any of its competitors.
Supply Chain Characteristics
Sourcing strategy. The Home Depot maintains a global sourcing strategy to acquire products directly from various manufacturers around the world. The company has a merchant team that identifies and purchases products directly f...

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