Home Depot Tackles A Supply Chain That Doesn't Recognize Geography

The new Home Depot CEO is trying to tackle the chain's supply chain challenge, which he pegged mostly as a regional issue. "The systems were very poorly adjusted to reflect differences in locales," said CEO Frank Blake. "We are the single-largest less-than-truckload shipper in the United States. A lot of trucks are going to stores that aren't full. It's not efficient."

In a wonderful profile in The Atlanta Journal-Constitution, the story illustrates the bottom-line impact of even the smallest supply chain adjustment, pointing out that, for Home Depot, "one-tenth improvement in turning over inventory equals about $150 million in cash." Definitely worth a read.