The Home Depot has significantly sped up its supply chain delivery performance by strategically expanding and optimizing its network of distribution and fulfillment centers, positioning inventory closer to customers and leveraging advanced logistics technology.
Distribution Network Driving Faster Delivery
Over the past eight years, Home Depot has built out nearly 200 facilities tailored to various logistical roles, giving the retailer considerable flexibility in fulfilling orders quickly. These include market delivery operations, direct fulfillment centers, and flatbed distribution centers that handle both fast-moving SKUs and bulky building materials.
As a result, the company now delivers same‑day or next‑day for more than 55% of in‑stock products, a more than threefold improvement compared to 2022. A proprietary “ship from best location” algorithm helps determine the most effective fulfillment path based on factors like inventory location and customer geography.
Inventory and Product Coverage Enhancements
Home Depot’s strategy isn’t just about facility count—it’s also about what’s stocked where. By increasing assortments in direct fulfillment centers and strategically positioning key products like water heaters closer to customers, the retailer has dramatically reduced delivery times for previously slow‑moving categories.
The company is also exploring ways to extend the reach of its flatbed distribution network, enabling faster delivery of construction materials to job sites while relieving store floors from staging large orders. This expansion supports both professional (“Pro”) customers and general consumers.
Next Steps: Maximizing Distribution Assets
With the bulk of its distribution infrastructure now in place, Home Depot is shifting focus to maximizing utilization of these assets. The company aims to expand fast‑delivery coverage to more products and markets and further improve on‑time performance—critical in an environment where customer expectations for speed are higher than ever.
