The Home Depot
Business Council Company Profile:
Brief Description and History
Home Depot and its family of subsidiaries are among the most well-known and widely-respected corporations in America. We have been a public company since 1981, and our common stock trades on the New York Stock Exchange under the ticker symbol “HD”. The company is included in the Dow Jones Industrial Average of thirty stocks, and in the Standard & Poor’s index of 500 industrial stocks.
The Home Depot is the world's largest home improvement specialty retailer, with 2,244 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, Mexico and China. In fiscal 2011, The Home Depot had sales of $70.4 billion and earnings from continuing operations of $3.9 billion. The Company employs more than 300,000 associates and processes over a billion transactions annually.
Products/solutions unique to the government
U.S. Communities is a nonprofit instrumentality of government that helps public agencies reduce the cost of purchased goods by combining the purchasing power of public agencies nationwide. This objective is accomplished by competitively soliciting quality products by a single lead public agency and making the resulting contract available to other public agencies nationwide. This contract allows all US state government, local governments, non-profits, and educational entities to participate by “piggybacking” on this contract, and enables them to buy at our stores without going through a bid process. The duration of the new contract is through 7-31-14, with options to extend.
The contract features no cost to government agencies to participate, no minimum spending requirements, competitive pricing, and is supported by numerous National Sponsors and Public Procurement Groups featured on the US Communities website. The contract was awarded with competitive “walk in, walk out” everyday guaranteed low pricing in the Home Depot stores, coupled with annual volume-based incentives and services offerings that provide for annual rebates to purchasing entities based upon sales volume as follows:
- At least $10,000 to $25,000 Annual Net sales = 1% Rebate of Net Sales
- At least $25,000 to $100,000 Annual Net sales = 2% Rebate of Net Sales
- Over $100,000 Annual Net sales = 3% Rebate of Net Sales
In addition, Home Depot offers a variety of installation services under our US Communities program that includes the installation of products that are sold in our stores, such as carpeting, flooring, cabinets, water heaters and countertops, as well as other products such as generators and HVAC systems. See U.S. Communities.
An example of a government-related project that was innovative - something that helped solve a problem or contributed a solution
Home Depot through our strong national presence offers a robust selection of products in all MRO, hardware, and building product categories - and associated services - at each of our locations. This unparalleled logistics capability provides solutions to our government customers by providing immediate access to the products they need at the locations they are needed – same day. This eliminates ordering and waiting issues when procuring through a catalog or internet portal.
This offering has consistently proved advantageous to government customers when a disaster impacts their immediate area. We are often considered part of a first response team to support government entities for their emergency needs.
In addition, our Renovations Services solutions have assisted many Housing Authorities to by providing turn-key renovations on a unit by unit basis.
New technologies being developed or adopted that will have an impact on the way products and/or services are delivered
Home Depot is always evaluating options on how to better service our customers; especially our government customers. Over the last few years we have rolled out services such as buy-online-pick-up-in-store, mobile applications to help with purchasing decisions, and initiated punch-out website procurement solutions for specific customers. In addition, we are expanding our product delivery capabilities from our stores to offer same day deliver in select markets.
Suggestion for improving the procurement process...
Large entities, like Home Depot, develop our commercial sales practices and government programs to provide a consistent and auditable execution in supporting those government entities. We are very competitive in the professional customer area.
Further, we also strive to educate procurement professionals that myriads of product discounts and catalog ordering are not always the best value for their needs and budgets. Local suppliers, like Home Depot, offer a competitive product price without the complexity of fluctuating discounting options. Further we provide value to the local government customer as we are located in their communities and provide career opportunities to the local citizens.
As a member of the Business Council, The Home Depot hopes to impact the public procurement community by...
Our repeatable execution of transactions through our stores with robust reporting capability provides for the confidence that the public procurement community is purchasing under consistent and auditable parameters through the available contractual offerings.
Catalog purchasing, while it has its place, does not provide for the local presence and capability of our product solutions immediately when the customer needs them.