this is only example for the hw I posted a little bit earlier
Alex smith
an_example.pptxThe Home Depot
The History Behind the Name
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank
The founders vision of one-stop shopping for the do-it-yourselfer
First two stores opened on June 22, 1979, in Atlanta, Georgia
60,000 square feet original stores, were able to stock more inventory then the industrial average
Products
Store inventory consists up to 40,000 different kinds of building materials, home improvement supplies, appliances and lawn and garden products
Stores are stocked with merchandise that is localized to match area’s market needs
Low price guarantee to beat anyone’s advertised specials
Offer 250,000 other products that they special order
Customers-Global Presence
Largest home improvement retailer in the U.S., Canada and Mexico
Entered Canada (1994) and Mexico (2001) through the combination of acquisitions and organic growth
Global expansion portrays Home Depot’s vast knowledge of the home improvement industry
Knows the needs, shopping trends and customs of each unique geography to best serve it’s customers
Worlds largest home improvement retailer
Fifth largest retailer in the world
Competition-Top 5 Home Improvement Retailers sales in 2011
The Home Depot $62,075,000
Lowe’s $49,282,000
True Value $17,135,000
Ace Hardware $9,491,000
Menards $8,067,000
Corporate Size-Story of Growth
1981, went public on NASDAQ, moved to NY stock exchange 1984
1989, 100th store opens
1994, extends into Canada
2001, extends into Mexico
2006, extends into China
Developed strategic product alliances directly with industry leading manufactures
Delivers most exclusive assortment to customers
Home Depot sets standard for innovative merchandise through national brands and proprietary products
Home Depot Forecasting
Forecasting is one of the most important aspects of any business that wants to maintain its competitive edge and gain more market share.
Due to current state of housing market, the Home Depot uses gross national product to forecast its demand for inventory.
Home Depot prepare and forecast for the upcoming uncertain events that could occur in the country such as hurricanes and thunderstorms.
Home Depot maintain several key locations that aren't in impact areas, but are close to them—from the Gulf of Mexico, around the tip of Florida, and up the Eastern Seaboard
Home Depot strategically place products so they can get goods to impacted areas quickly when an event occurs.
Home Depot Forecasting and Inventory
Home Depot is a part of an industry that ranks inventory as top five business costs.
Establishing and forecasting for the right amount of inventory is very important for Home Depot as it will insure that the company is taking care of its customers and growing as well.
It will also diminish the overstock cost which most companies incur due to storage of unsold goods.
Home Depot Supply Chain and Forecasting
The supply chain and forecasting of Home Depot is getting more efficient and productive, helping the company achieve better gross margins.
The key to company’s operation is inventory management and forecasting.
Previous sales data is also an important tool used by Home Depot to forecast the inventory required.
Different methods are combined to obtain best forecasting in the company.
Senior Vice President of Supply chain of Home Depot says that we should get ourselves ready with days of inventory not weeks which means that their forecasting will also become a little tougher.
