Establishing better internal control over transportation operations has helped Ace Hardware manage that challenge. Fortunately, market leaders such as Home Depot and Ace Hardware have a plan in place, and are ready to respond to demand.
If a hurricane or other major storm appears eminent, Home Depot starts shipping goods most likely to be in immediate demand—such as flashlights, water, gas cans, and plywood—to the targeted area.
The home improvement company operates 14 retail support centers around the country, as well as two centers that manage its direct import business. Seasonality also requires a good deal of forecasting, preparation, and planning—although most retailers handle this process separately from disaster response planning.
The more the retailer can plan and share volume estimates with carriers, the better the product flow. For Dave Moore, emergency response captain for Atlanta-based Home Depotaddressing these needs is a year-round endeavor.
As the storm moves closer, Home Depot mobilizes prepositioned loads as close to the expected impact area as possible, while still ensuring a safe distance for drivers and goods. Home Depot also follows a post-strike process in which it continues to ship larger supplies of certain goods to stores in an impact area for up to six weeks, or as long as demand warrants.
Ace also subscribes to meteorological services that provide updates on incoming weather events and impact area projections. That gives us a lot of control over a big chunk of our supply chain. For example, an extended winter in many parts of the United States from into meant home improvement vendors had to hold spring supplies longer, while winter supplies continued to sell well into March and April.
Ready in Any Season When home improvement retailers prepare for natural disasters, they must also be ready to balance emergency-response efforts with regular seasonal product demand, such as stocking air conditioners in the summer and snow blowers in the winter.
Home improvement product sales typically begin picking up volume in late February or early March, with the push culminating in May, according to financial services company UBS.
We then work with our urgent host team to fill orders and expedite merchandise to stores in need. More to the Story: Items that normally ship via intermodal might shift to over the road, because the product is suddenly in high demand.
Carriers are assigned their own room within the command center, where they focus exclusively on determining how to get needed supplies to the impact area. Hurricanes are easier to plan for because they are easily tracked, Moore says, but their damage is often the most devastating.
But add a natural disaster or major weather event, and the pressure is on to strategically and efficiently move products to customers in impacted areas. Ace can stock key items anywhere within that network to prepare for large weather events or other unexpected occurrences.
As stores reopen in the impact zone, those goods are available for immediate consumption. When a natural disaster strikes without notice, Home Depot engages similar processes, but over an abbreviated timeframe. Ready in Any Season Home improvement stores are not only a key resource for bathroom renovations or spring gardening needs; they also serve as the go-to source when a thunderstorm knocks out power, a hurricane strikes, or a tornado touches down.
Lives are affected, so we take our responsibility seriously.Home Depot uses a forecasting system that tracks major weather events such as hurricanes, tornadoes, and thunderstorms.
Hurricanes are easier to plan for because they are easily tracked, Moore says, but their damage is often the most devastating. This statistic presents the forecast of Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of Home Depot Inc in and The EBITDA of Home Depot was expected to amount to.
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when severe weather strikes, let the home depot help No matter how severe the weather, The Home Depot is there. We can assist your preparation for weather emergencies with products such as plywood, tarps, flashlights and batteries.Download