The Home Depot grows its flatbed distribution network

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Dive Brief:

• The Home Depot is investing in its flatbed distribution centers, or FDCs, as it expands its fulfillment operations, executives said during a Feb. 25 Q4 earnings call.
• Three FDCs are currently under construction, with more in the pipeline, Senior EVP Ann-Marie Campbell said.
• In addition to flatbed distribution centers, The Home Depot operates other facilities, such as direct fulfillment centers.

Dive Insight:

The Home Depot is investing in its fulfillment operations to drive stronger delivery speeds.

“Today, we have the fastest delivery speeds across the greatest number of products in company history,” VP of Merchandising Bill Bastek said.

FDC’s help deliver larger orders directly to job sites, Campbell said. Moving away from in-store deliveries has also helped reduce aisle clutter from staged orders.

In 2020, the company announced plans to build about 150 flatbed distribution centers to offer same- and next-day delivery to 90% of U.S. customers. That distribution model helps the company efficiently pick, pack and ship lumber and other building materials.

The retailer has also worked to expand its product assortment across its 19 direct fulfillment centers, which ship products like flooring, windows and doors.

Lastly, the company has also been able to partner with third-party last mile providers to make progress on its delivery experience for customers, Bastek said.

Other retailers leaning on self-operated distribution centers for deliveries include Best Buy. The company is leaning less on its stores as it adjust to brick-and-mortar operations for omnichannel shopping.

The focus on fulfilling orders from distribution centers allows employees to dedicate time to in-store sales and order pickups. This trend grew during the pandemic as more customers opted for online orders and the company aimed to balance in-store service and e-commerce fulfillment capabilities.