Home Depot 1999 Annual Report Download - page 14

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10
Logistics efficiencies are reducing the cost of
shipping products to our stores. The Home
Depot plans to reduce freight costs by con-
solidating less-than-full truckload shipments
in cross-docking transit facilities. With current
plans to utilize two transit facilities during
fiscal 2000, we ultimately expect to be oper-
ating 15 facilities across North America.
Entrepreneurs abound at The Home Depot. Throughout the Company, we are always testing new
ways to enhance service to our customers and to become more efficient at what we do. We believe
there is always room for improvement.
We made significant progress during fiscal 1999 in refining a program designed to increase sales
to professional business customers. A package of customized offerings, including enhanced order-
ing, pick-up and delivery services; credit programs; and associates dedicated to the professional
business customer generated incremental sales and operating profits in three test markets, and was
expanded to 10 more markets during the year. By the end of fiscal 1999, The Home Depot was
finalizing plans for a three-year company-wide rollout, which is expected to begin in fiscal 2000.
The stronger relationships we are creating with professional customers will enable us to capture a
greater share of this $75 billion market.
The Home Depot’s decentralized organization is designed to allow us to stay close to our cus-
tomers. It also supports an entrepreneurial spirit and fosters an environment that encourages
creativity and change. We listen and respond to customer needs and preferences market by market,
and even store by store. During fiscal 1999, we established four new Home Depot divisional offices
in North America, putting the leadership and resources in place to support future store openings.
We also tested and refined a system that closely matches associate staffing hours with customer
demand, while taking into consideration training schedules and other events, as well as personal
needs. We plan to implement this system in all stores during fiscal 2000.
We understand that the associates in the aisles of our stores hold the keys to strong customer
relationships. The training, tools and support they receive, coupled with their desire to serve cus-
tomers, allow us to maintain a competitive advantage in the industry.
Continuous improvement is a way of life
at The Home Depot.