Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Inventory Control
The Home Depot Inventory Control
Every company that keeps a certain amount of product or raw material on hand needs a method for controlling the inventory of that good. In a retail setting, it is even more critical than it would be in a manufacturing one because of the small margins under which most retailers work. Because the inventory in a retail store is the lifeblood of the operation there needs to be a concerted effort to manage what the company has on hand and what they will need for the future. One of the largest retailers in the world, The Home Depot, has developed a system that allows them to operate at small margins while maintaining a profit. This essay will discuss the type of system that is used and how it is effective for the giant retailer.
According to Supply Chain Digest (2007), The Home Depot realizes that because people are...
Previously, the company was more focused on having a large amount of supply at regional distribution centers and concentrated less on the amount of stock available and the diversity of that stock. However, their business model has had to change because they buying public has changed. The inventory control system has thus changed to one in which the company relies more on having items in stock for the small customer and relies less on the large contractors that were such a large part of its business previously.
These facts have changed the way that the company deals with stock outs and safety stock. In the past four years the company has completely updated its systems to give a more direct line between associates (who…
References
Data Direct. (2010). Home Depot builds customer satisfaction. Retrieved from http://www.datadirect.com/case-study/homedepot.html
SCDigest. (2007). Supply chain strategy: Home Depot says it is ready for supply chain transformation. Supply Chain Digest. Retrieved from http://www.scdigest.com/assets/newsViews/07-03-01-2.cfm
Home Depot Industry overview about home depot and its position in the Market in comparison to its closest competitor Lowe's Home Depot Inc. became a corporation in 1978 and currently has over 1500 stores. The stores are full service warehouse style, stores that sell more than 40,000 products related to home improvement. (HD Full Description) Multex Investor also reports that, Home Depot operates four wholly owned subsidiaries: Georgia Lighting, Inc., Apex Supply Company,
These are subordinated, however, to the primary functional units within HD's organizational structure are Merchandising, Human Resources, Enterprise Program Management, Retail Finance, it, and Investor Relations. After these functional breakdowns, there are several sub-breakdowns, but the bureaucratic, hierarchical structure is maintained. Home Depot's management team is in a state of transition. The bulk of their Board and Executive group have been brought into their current positions within the past two
Home Depot is a retailer of home improvement supplies, and Lowe's is its biggest rival. Both are very large companies, and they have a lot of similarities. Both companies competes only in this one industry, focused on big box retailing of home improvements and home finishings. These are considered to be category killers, in that once they enter a market few other firms can exist in that market selling the
Audit Planning Control The American Institute of CPAs (AICPA) has published guidelines for preparing an audit plan. The first step is the preliminary engagement activities, which is focused on establishing an understanding of the terms of engagement for the audit. The steps in the planning process are to identify the scope of the audit; to determine the reporting objectives; to consider the results of the preliminary engagement and to determine the
The company needed greater agility in managing how it responded to customer demands, and also needed to have much greater control over inventory management as a process as well. In responding to these strategic weaknesses in the company, Mr. Nardelli invested $1B in new information systems and created entirely new information systems platforms for the more efficient sharing of sales data between stores and with regional and worldwide headquarters
Vendor Managed Inventory Supply Chain And Operations Management: Supply chain management is a major concerned of all large and small firms in today's highly unpredictable business environment. While the buyers or distributors are worried about timely deliveries of products and efficiency of products, manufacturers are more concerned about how their customers judge demand and place orders. This is because unpredictable changes in demand can force the customers to place orders for products