If you own a home improvement store, you’re probably wondering how a chain like Home Depot takes inventory. Home Depot takes inventory in square feet. Changes in inventory per-square-foot can be caused by factors such as average cost of products, product mix, in-stock position, and average inventory density. Home Depot purchases inventory from vendors and marks it up, generating profit from every inventory turn. The markup rate is simply the number of dollars earned per turn, based on cost of inventory.
To increase the availability of products for shoppers and business customers, the company is overhauling its supply chain. It has instituted a project known as “Project Sync” and is now aiming for a more steady flow of deliveries from suppliers. Home Depot now has a network of 18 sorting centers. Before, five trucks delivered merchandise twice a week. Now, the chain wants to receive two trucks five days a week.
While The Home Depot has a variety of materials, you can always shop elsewhere. Its return policy is also customer friendly. You can also find great deals on items on their website. Just be sure to check the product availability regularly – Home Depot’s website will notify you if the item you are looking for is back in stock. That way, you can get an email when the item you need comes back in stock.