Reference of building a foundation center for shopping in-store

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Based on the four competitive priorities Home Depot
is quite brilliant on all 4 levels but if I had to suggest a new operation
strategy for Home Depot it would be to come up with only one Vision instead of
two then stick with it. Once, established then go above and beyond their
expectation of everyone they serve including their company, Home Depot will
precede through an entirely interspersed supplier system that would help them
to provide the best customer service as well provide cost efficiencies inside
the store and online for consumers, high-quality products, and an in-stock
setting that welcome needs today and every day after with their flexibility and
expandability within the Home Depot’s facilities.

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Formulate a new operations strategy for
the selected organization based on the four (4) competitive priorities (i.e.,
cost quality, time, and flexibility).

Omni-channel supply chain is what Home Depot has
equipped due to the attraction that it brings to the company inside the store
and online shopping. According to Bond, in recent years Home Depot supply chain
has been remodeled, which is a new type of fulfilment of building a foundation
center for shopping in-store and online. Equally, their supply chain has been restructured
because of the recognition of customer value of inventory visibility and online
product research, all lead Home Depot to integrate the experience of shopping
online or inside the store. Regardless of how this restructure meet the
customers, Home Depot transaction processes is preferred to be looked at as a fulfillment,
for instance, the network of distribution centers for store replenishment was restructured
to developed, deployed and a more recent fulfillment of direct-to-customer.  To support this in 2004, Home Depot had a three-phrase
project that was a success due to their recognition of their supply chain, the
first phase, an in-house replenishment was executes because Home Depot needed
to know how and when product was coming to the store. With that in mind, to
attain the needed performances, products were automated order via Home Depot placing
the orders for majority of their products. Second phrase, the efficiencies of
bulk distribution centers were increased because Home Depot went to two centers
such as the Stocking Distribution and Rapid Deployment Centers. The project
third phrase was the building of the Direct Fulfillment Facilities (DFCs) that
took care of the mutually dependent retail needs.

Analyze
both the structure of the competitive priorities and infrastructure of the
production process. Develop three (3) new enablers that are aligned with the
long-term plan of the selected organization. Evaluate three (3) pros and three
(3) cons of the new enablers.

Productivity
and Efficiency – Home Depot
has built the best in class supply chain network and information technology
systems due to their goal and aim was to achieve and rapid grow it’s levels of
productivity and Efficiency. With that aim and achievement allow Home Depot
shareholder value to increase and the operating cost to lower. However, to
continue to see improvement they must find better ways to manage their
clearance and reduced tag inventory, to eliminate the value and trash compactor
of perfectly good and new merchandise. Often, before a company can reduce to no
value or trash, merchandise is discarded due to poor management of inventory
that the company has already paid for.

Interconnected
retail – Home Depot are selling
through different channels such as, in store, online or on the phone purchases
to meet the shopping needs of every customer with the ability of returning it
back to the store of any choose of purchasing which is a positive thing for the
company. Nonetheless, behind every positive comes a negative because the
drawback of it all is if you are on-line shopping and it’s in the store you
must go into the store because Home Depot will not ship the item if its
available for pickup inside the store. Evenly, that can cause major issue for
some customers because the benefit of online shopping is to enjoy the benefit
of not dealing with heavy traffic, crowded stores and intensive long lines.

Customer
Service: The company aim is to
eliminate the number amount of tasking among employees and providing more and
more of customer services from the in-store and front-line employees. To
accommodate that process, Home Depot has within the past 5 years matched
customers demand to employee staffing through a new scheduling system. For
instance, opened new call/care centers, implemented a centralized process for
returning products to vendors, all to increase customer satisfaction by
reducing the time employees spend tasking. However, the weakness of this effort
is still a bit more tasking than Home Depot would like to see, the image they
are portraying has cause a disconnect with consumers expectation and actual
interaction in the stores.

Therefore, I will be focusing on these three areas;
customer service, productivity and efficiency, and interconnected retail
because Home Depot through their growth of interconnected retail environment
their focus is to capitalize from their growth in ecommerce. Yet, this has been
rapidly growing only a fraction of its overall revenue is being
represented. 

8). Giving Back: Home Depot give to communities and
society their time, talents, energy and resources to worthwhile causes as well
help them to get the maximum benefit of those products and resources. 

7). Building Strong Relationships: Trust, honesty
and integrity is what Home Depot believe to a strong relationship because
through 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 only
with the understanding of the impact it may cause and being ready to accept
responsibility for what actions comes with it. They exercise good judgment not just “doing things right” but “doing
the right thing.”

5). Respect for All People: Home Depot understand to
stay successful, each associate is a part of the business team. The environment
they work in must continue to be represented with mutual respect, free of
discrimination and harassment.

4). Taking Care of Our People:  Home Depot recognize the key to their success
is treating people well. Associate are rewarded and recognized for good
performance due to encouragement that allows them to speak up and take risks.

3). Entrepreneurial Spirit: All Home Depot
associates initiate creativity and innovative ways throughout the company on
ways to serve their customers and improve the business with trained best
practices.

2). Creating Shareholder Value: Home Depot are
committed and dedicated to providing the capital necessary that allows them to
grow, need, and expect return on their investment.

1). Excellent Customer Service: Going the extra mile
to be able to deliver knowledgeable information about their merchandise rather
it’s their
quality products, service, price and selection, to help customers benefit to
the maximum of using each product. 

Home
Depot has brick and mortar stores and an online presence. Meaning they has
transition to a mixed platform. Equally, they have a few purchase and delivery
options for their customers. For instance, the online business is going in the
right direction for the company and the customers due to, the offers or options
to Buy Online Pick-Up in Store, Buy Online Ship to Store, and Buy Online
Deliver from Store and the ability to purchase from one store and pick up at
another store of your choice anywhere in the United States. Not to mention,
their supply chain network is supported by a complex, integrated and evolving
due to Home Depot strategy, Mission and Vision that is so well followed, to
Excel customer satisfaction through consistently high-quality products, customer
service and competitive pricing and to become the number #1 customer service
retailer in the world. Also, for customers, Home Depot focuses and aims to
receive the best possible service by training skilled employees and nurturing
long lasting relationships, (Ferguson, 2017). The Home Depot vision is to
become the number #1 customer service retailer in the world. With this vision
they live by 8 values that supports this vision. These values are

Evaluate
key elements of the selected production or service organization’s operational
efficiency with its operational strategy. Determine three (3) tasks that do not
align with the operational strategy. Determine the weaknesses that are evident
in each task.

The
founder 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. Both
stores 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 the
average hardware stores. The Home Depot has 2,200 retail stores in the United
States as well as in other countries such as Canada and Mexico with an average
of inside space of 105,000 square feet and outside space of 23,000 square feet
of garden space in each store across the region which has made them the world’s
largest home improvement specialty retailer. Additionally, each Home Depot
store carries different products of an average of 40,000, special order catalog
items of 250,000 and a tremendous amount of endless online aisles of over
400,000 associates as well for the Do-It-For-Me customer, professional
contractors, and the customer that Do It Yourself, Home Depot offers more than
one million products to these e-commerce businesses that too, make them the
largest installation business for their customers.

Introduction