Home Depot Outlines

The procurement process of the Home Depot outlines the company's Supplier information within the Reference Manual. The Supplier Reference Manual provides conclusive information to ensure successful partnerships and collaboration. The Home Depot's ordering cycle includes electronic data interchange requirements, distribution information, purchase order methods, store environment conditions, manufacturing excellence, customs compliance, and transportation constraints (see Appendix A).

The electronic data interchange (EDI) system provides a resource for recurring supplier collaboration. Suppliers are encouraged to use the EDI system weekly to ensure business and supply chain initiatives are met. The EDI includes mandatory transaction sets, a product catalogue, image requirements, and computer system access needs.

Distribution information includes product flows, product and packaging characteristics, and freight requirements. The Home Depot defines distribution requirements to limit confusion and predicaments upon arrival. The information designates where product deliveries should be depending on point of origin, product, and final dispersal.

The final requirements of The Home Depot supplier reference manual include customs compliance and transportation. The Home Depot outlines how suppliers need to handle international imports or exports, from having the appropriate documentation to sufficient packaging and security. Transportation conditions include a routing guide suppliers follow. Deviation from the routing guide could cost a supplier the right to work with the successful merchandiser. The transportation section also includes information on bill of lading requirements, off-cycle shipping guidelines, labeling, and facilities drop-off arrangements (Home Depot Website, 2010, Supplier Reference Manual).

Pricing strategies involve movement along the Demand curve (McConnell, Brue, & Flynn, (2009). In a market with high price elasticity of demand, such as a monopolistic