October 2, 2014
Home Depot is extending its e-commerce capabilities westward with the opening of a dedicated online fulfillment center in California.
Located in Perris, California, the 858,953 sq. ft. facility will initially employ approximately 150 people, and eventually employ up to 300. It is one of three new DFCs opening across the U.S. in addition to the company’s existing network.
The Locust Grove DFC opened outside of Atlanta, Georgia in February and the Ohio DFC is scheduled to open next year.
According to the company, the new DFCs will dramatically increase the number of orders it can ship the same day they are received, which significantly expands the number of orders they’ll be able to deliver within two days.
The three new DFCs are strategically positioned to deliver 90% of Home Depot’s customers’ parcel orders within two days using economical ground service. For example, a customer will be able to place an order by 5 p.m. Monday and receive on Wednesday.
The company added that the new DFCs will also lower transportation costs and allow it to deliver online orders to consumers, contractors and its network of U.S. stores faster and uniformly.
Each center will have the capability to hold as many as 100,000 skus and stock a variety of goods including:
1. Products customers most frequently want delivered
2. Products where an extended assortment will be enabled through direct fulfillment (e.g. lighting and fans)
3. Products where a direct fulfillment strategy provides a better customer solution (e.g. flooring)
4. Seasonal products where a central fulfillment strategy allows the specialty retailer to offer a more compelling assortment (e.g. patio furniture)
The Home Depot has more than 90 North American distribution facilities, which ship products to more than 2,000 stores.
Source: Retailing Today
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