The Home Depot is transforming its IT and merchandising strategy and is developing a new forecasting tool that feeds into the retailer's centralized automated replenishment system.
According to Frank Blake, Chairman and CEO, The Home Depot, "Our merchandising and IT transformation strategy remain on track." Blake notes that more than 70 percent ofthe retailer's SKU's are on automated replenishment.
The new system will use multiple forecasting algorithms to help improve the retailer's ability to predict and handle spike sale variations, which will help save hours for associates, improve for customer-facing activities and further improve in-stock rates.
"Our current forecasting system is too manual requiring frequent associate intervention, particularly, to deal with spike sales," says Blake. "When you think about the project and seasonal orientation of our business, that's a significant issue."
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