Home Depot Inc. has earmarked $1.2 billion over the next five years to overhaul its supply chain, The Wall Street Journal reported June 11, citing an interview with Mark Holifield, the company's executive vice president of supply chain and product development.
The Atlanta-based home improvement retailer reportedly plans to open 170 distribution sites in the U.S., which include "dozens" of direct fulfillment centers for next-day or same-day delivery of commonly ordered products, and 100 local hubs for bulky items.
The plan also includes the construction of around seven e-commerce fulfillment centers, according to the report.
Online orders accounted for 6.7% of Home Depot's $100.9 billion in sales in 2017.
"This is part of an $11 billion overall plan to re-engineer our company to ensure that we are prepared for the future in retail," Holifield reportedly said.
The report added that the retailer is also testing the use of cars and vans for lower-cost delivery of smaller orders, and expanding its network of flatbed trucks that can deliver concrete and other building materials.
