Protecting the Climate: The Home Depot’s Supply Chain Efficiency

Rhea-AI Summary

The Home Depot announced continued progress on its multi-year supply chain initiative, originally launched with a $1.2 billion investment in 2017. Despite pandemic-related disruptions, the company has enhanced its logistics, resulting in record product volumes moving efficiently through its network. Key strategies include the installation of hydrogen fuel cells at multiple facilities, optimizing delivery routes through technology, and innovative partnerships to reduce transportation needs. These efforts not only cut costs but also significantly lower the company's carbon footprint. Home Depot is committed to building a reliable and environmentally responsible delivery network for its home improvement products.

Positive

• Record product volume moved efficiently through the supply chain.
• Reduced carbon intensity due to supply chain improvements and green energy investments.
• Partnership with Plug Power for zero-emission hydrogen fuel in material handling fleets.
• Innovative route optimization technologies reducing miles traveled and fuel consumed.

Negative

• None.

NORTHAMPTON, MA / ACCESSWIRE / April 26, 2023 / The Home Depot:

Originally published on Built From Scratch

By making our supply chain more efficient, we reduce business costs and the impact that our product distribution has on the environment.

We continue to make progress on our multi-year supply chain initiative to create the fastest, most efficient and reliable delivery network for home improvement products.

When we announced our approximately $1.2 billion supply chain initiative in 2017, we could have never envisioned the disruption to the global supply chain because of the pandemic. Due to our supply chain investments, however, we have demonstrated our ability to navigate any environment.

In addition, our supply chain investments have helped us move record amounts of product more efficiently. Despite seeing another year of record product volume move through our business, our new supply chain facilities helped us reduce the miles driven to get products from our vendors to our customers.

Even as supply chain volume increased, the efficiencies we gained in our operations and our investments in green energy helped us reduce our carbon intensity.

WAYS WE'RE DRIVING SUPPLY CHAIN IMPROVEMENTS

• In 2021, we installed hydrogen fuel cells at three U.S. supply chain facilities, giving us 15 locations with emissions- free fuel for forklifts. We estimate these fuel cells helped us reduce electricity consumption by about 21 million kilowatt hours in 2021.
• We do a technology-assisted assessment of scheduled pickups and deliveries, then recommend optimized routes to reduce miles traveled, fuel consumed and trucks on the road.
• By partnering with suppliers to forgo pallets, we can stack products to the top of trailers, resulting in a reduction in the number of truckloads needed to transport some goods.
• As we roll out our new distribution facilities, we've partnered with Plug Power to fuel some of our new facility's material handling fleets, like forklifts, with zero-emission hydrogen fuel. This is another way we are reducing our environmental impact while building a best-in-class supply chain.
• We sell available space on our trucks and buy space from other companies, ensuring fewer underloaded trailers hit the road. That space sharing saves about 2 million driven miles a year.
• Optimization technology guides how we pack trucks or ocean-bound containers. We maximize the product load, reducing the number of truckloads and containers - and overall emissions.

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View additional multimedia and more ESG storytelling from The Home Depot on 3blmedia.com.

Contact Info:

Spokesperson: The Home Depot
Website: https://www.3blmedia.com/profiles/home-depot
Email: info@3blmedia.com

SOURCE: The Home Depot

View source version on accesswire.com:
https://www.accesswire.com/751370/Protecting-the-Climate-The-Home-Depots-Supply-Chain-Efficiency

FAQ

What is The Home Depot's supply chain initiative about?

The Home Depot's supply chain initiative focuses on improving efficiency and reducing costs in product distribution, originally launched with a $1.2 billion investment in 2017.

How has the pandemic affected The Home Depot's supply chain?

The Home Depot has managed to navigate pandemic disruptions effectively due to its prior investments in supply chain efficiency.

What environmental benefits has The Home Depot achieved in its supply chain?

The Home Depot has significantly reduced its carbon footprint through various initiatives, including the installation of hydrogen fuel cells and route optimization technologies.

What key strategies is The Home Depot using to enhance supply chain efficiency?

Key strategies include adopting hydrogen fuel cells, optimizing delivery routes, and partnering with suppliers to reduce truckloads.

What are the expected outcomes of The Home Depot's supply chain improvements?

Expected outcomes include reduced operational costs, efficient product delivery, and a lower environmental impact.