Reference Based on the four competitive priorities Home Depotis quite brilliant on all 4 levels but if I had to suggest a new operationstrategy for Home Depot it would be to come up with only one Vision instead oftwo then stick with it. Once, established then go above and beyond theirexpectation of everyone they serve including their company, Home Depot willprecede through an entirely interspersed supplier system that would help themto provide the best customer service as well provide cost efficiencies insidethe store and online for consumers, high-quality products, and an in-stocksetting that welcome needs today and every day after with their flexibility andexpandability within the Home Depot’s facilities. Formulate a new operations strategy forthe selected organization based on the four (4) competitive priorities (i.e.,cost quality, time, and flexibility).
Omni-channel supply chain is what Home Depot hasequipped due to the attraction that it brings to the company inside the storeand online shopping. According to Bond, in recent years Home Depot supply chainhas been remodeled, which is a new type of fulfilment of building a foundationcenter for shopping in-store and online. Equally, their supply chain has been restructuredbecause of the recognition of customer value of inventory visibility and onlineproduct research, all lead Home Depot to integrate the experience of shoppingonline or inside the store.
Regardless of how this restructure meet thecustomers, Home Depot transaction processes is preferred to be looked at as a fulfillment,for instance, the network of distribution centers for store replenishment was restructuredto developed, deployed and a more recent fulfillment of direct-to-customer. To support this in 2004, Home Depot had a three-phraseproject that was a success due to their recognition of their supply chain, thefirst phase, an in-house replenishment was executes because Home Depot neededto know how and when product was coming to the store. With that in mind, toattain the needed performances, products were automated order via Home Depot placingthe orders for majority of their products.
Second phrase, the efficiencies ofbulk distribution centers were increased because Home Depot went to two centerssuch as the Stocking Distribution and Rapid Deployment Centers. The projectthird phrase was the building of the Direct Fulfillment Facilities (DFCs) thattook care of the mutually dependent retail needs.Analyzeboth the structure of the competitive priorities and infrastructure of theproduction process. Develop three (3) new enablers that are aligned with thelong-term plan of the selected organization. Evaluate three (3) pros and three(3) cons of the new enablers.
Productivityand Efficiency – Home Depothas built the best in class supply chain network and information technologysystems due to their goal and aim was to achieve and rapid grow it’s levels ofproductivity and Efficiency. With that aim and achievement allow Home Depotshareholder value to increase and the operating cost to lower. However, tocontinue to see improvement they must find better ways to manage theirclearance and reduced tag inventory, to eliminate the value and trash compactorof perfectly good and new merchandise. Often, before a company can reduce to novalue or trash, merchandise is discarded due to poor management of inventorythat the company has already paid for.Interconnectedretail – Home Depot are sellingthrough different channels such as, in store, online or on the phone purchasesto meet the shopping needs of every customer with the ability of returning itback to the store of any choose of purchasing which is a positive thing for thecompany. Nonetheless, behind every positive comes a negative because thedrawback of it all is if you are on-line shopping and it’s in the store youmust go into the store because Home Depot will not ship the item if itsavailable for pickup inside the store.
Evenly, that can cause major issue forsome customers because the benefit of online shopping is to enjoy the benefitof not dealing with heavy traffic, crowded stores and intensive long lines.CustomerService: The company aim is toeliminate the number amount of tasking among employees and providing more andmore of customer services from the in-store and front-line employees. Toaccommodate that process, Home Depot has within the past 5 years matchedcustomers demand to employee staffing through a new scheduling system. Forinstance, opened new call/care centers, implemented a centralized process forreturning products to vendors, all to increase customer satisfaction byreducing the time employees spend tasking. However, the weakness of this effortis still a bit more tasking than Home Depot would like to see, the image theyare portraying has cause a disconnect with consumers expectation and actualinteraction in the stores. Therefore, I will be focusing on these three areas;customer service, productivity and efficiency, and interconnected retailbecause Home Depot through their growth of interconnected retail environmenttheir focus is to capitalize from their growth in ecommerce. Yet, this has beenrapidly growing only a fraction of its overall revenue is beingrepresented.
8). Giving Back: Home Depot give to communities andsociety their time, talents, energy and resources to worthwhile causes as wellhelp them to get the maximum benefit of those products and resources. 7). Building Strong Relationships: Trust, honestyand integrity is what Home Depot believe to a strong relationship becausethrough listening and responding to the need of their customers, associates,communities and vendors which makes everyone happy.6). Doing the Right Thing: Decision is made onlywith the understanding of the impact it may cause and being ready to acceptresponsibility for what actions comes with it. They exercise good judgment not just “doing things right” but “doingthe right thing.
“5). Respect for All People: Home Depot understand tostay successful, each associate is a part of the business team. The environmentthey work in must continue to be represented with mutual respect, free ofdiscrimination and harassment. 4). Taking Care of Our People: Home Depot recognize the key to their successis treating people well.
Associate are rewarded and recognized for goodperformance due to encouragement that allows them to speak up and take risks. 3). Entrepreneurial Spirit: All Home Depotassociates initiate creativity and innovative ways throughout the company onways to serve their customers and improve the business with trained bestpractices.2).
Creating Shareholder Value: Home Depot arecommitted and dedicated to providing the capital necessary that allows them togrow, need, and expect return on their investment.1). Excellent Customer Service: Going the extra mileto be able to deliver knowledgeable information about their merchandise ratherit’s theirquality products, service, price and selection, to help customers benefit tothe maximum of using each product.
HomeDepot has brick and mortar stores and an online presence. Meaning they hastransition to a mixed platform. Equally, they have a few purchase and deliveryoptions for their customers. For instance, the online business is going in theright direction for the company and the customers due to, the offers or optionsto Buy Online Pick-Up in Store, Buy Online Ship to Store, and Buy OnlineDeliver from Store and the ability to purchase from one store and pick up atanother store of your choice anywhere in the United States. Not to mention,their supply chain network is supported by a complex, integrated and evolvingdue to Home Depot strategy, Mission and Vision that is so well followed, toExcel customer satisfaction through consistently high-quality products, customerservice and competitive pricing and to become the number #1 customer serviceretailer in the world.
Also, for customers, Home Depot focuses and aims toreceive the best possible service by training skilled employees and nurturinglong lasting relationships, (Ferguson, 2017). The Home Depot vision is tobecome the number #1 customer service retailer in the world. With this visionthey live by 8 values that supports this vision. These values are Evaluatekey elements of the selected production or service organization’s operationalefficiency with its operational strategy.
Determine three (3) tasks that do notalign with the operational strategy. Determine the weaknesses that are evidentin each task. Thefounder of Home Depot opened two stores in Atlanta, Georgia the year of 1979,with a fruition vision of one-stop shopping for the do-it-yourselfer.
Bothstores square feet were 60,000 each with a warehouse to stock 25,000 products,which were more than their competitors at that time and more product than theaverage hardware stores. The Home Depot has 2,200 retail stores in the UnitedStates as well as in other countries such as Canada and Mexico with an averageof inside space of 105,000 square feet and outside space of 23,000 square feetof garden space in each store across the region which has made them the world’slargest home improvement specialty retailer. Additionally, each Home Depotstore carries different products of an average of 40,000, special order catalogitems of 250,000 and a tremendous amount of endless online aisles of over400,000 associates as well for the Do-It-For-Me customer, professionalcontractors, and the customer that Do It Yourself, Home Depot offers more thanone million products to these e-commerce businesses that too, make them thelargest installation business for their customers.Introduction