Competitive Priorities
Competitive priorities are the important dimensions
that a process or supply chain must have in place in order to satisfy its
customers. A company's competitive priorities consist of cost, quality, time
and flexibility. The priorities that a company possesses and delivers to its
customers are called its competitive capabilities. The Home Depot's competitive
priorities in order are quality, cost, time, and flexibility.
that a process or supply chain must have in place in order to satisfy its
customers. A company's competitive priorities consist of cost, quality, time
and flexibility. The priorities that a company possesses and delivers to its
customers are called its competitive capabilities. The Home Depot's competitive
priorities in order are quality, cost, time, and flexibility.
"Our goal is to provide the highest level of service, the broadest selection of products, and
the most competitive prices" - The Home Depot
Quality There are two types of quality that a company can provide, top quality and consistent quality.
The Home Depot strives for both quality aspects but mostly implements consistent quality. Across
all their stores they provide the same products at the same level of quality standards. All their
products must meet specific standards and all lumber sourced from the same FSC certified wood.
Cost Low-cost operations is the belief in providing a service or product at the lowest cost possible, whether it is for the customers or supply chain. The Home Depot tries to keep their prices as low as possible and even goes as far as to offer bulk discounts on certain items and will offer price matching against certain competitors. In order to stay competitive, Home Depot sets their prices competitively and fair.
Time can be broken into 3 categories, delivery speed, on-time delivery, and development speed. The Home Depot implements all 3 of these in different ways. To improve delivery speed, they have fast check-out lanes, lean systems to make checkout faster, their website integrated with store inventories to track and check current availability, and rapid deployment centers to assist with fast deliveries to stores. These RDCs also help with on-time deliveries that can restock stores much faster and fulfill orders when they happen much quicker than previously capable.
Flexibility There are 3 types of flexibility a company can have, customization, variety, and volume flexible. The Home Depot mostly embodies variety and volume flexibility. The Home Depot provides a very flexible variety of products and services, from lumber, to tools and machines, appliances, paint, flooring, gardening, and even tool rentals, and installation services. The Home Depot can handle all these products and services at each location and their employees and stores are equipped to do it all. Volume flexibility helps especially with seasonal demands. They can increase for instance their shovel inventory around winter time when demand for those products are much higher than in warmer months. They have supply chain capabilities of getting those items only when needed and not holding that huge inventory yearlong on site.
Cost Low-cost operations is the belief in providing a service or product at the lowest cost possible, whether it is for the customers or supply chain. The Home Depot tries to keep their prices as low as possible and even goes as far as to offer bulk discounts on certain items and will offer price matching against certain competitors. In order to stay competitive, Home Depot sets their prices competitively and fair.
Time can be broken into 3 categories, delivery speed, on-time delivery, and development speed. The Home Depot implements all 3 of these in different ways. To improve delivery speed, they have fast check-out lanes, lean systems to make checkout faster, their website integrated with store inventories to track and check current availability, and rapid deployment centers to assist with fast deliveries to stores. These RDCs also help with on-time deliveries that can restock stores much faster and fulfill orders when they happen much quicker than previously capable.
Flexibility There are 3 types of flexibility a company can have, customization, variety, and volume flexible. The Home Depot mostly embodies variety and volume flexibility. The Home Depot provides a very flexible variety of products and services, from lumber, to tools and machines, appliances, paint, flooring, gardening, and even tool rentals, and installation services. The Home Depot can handle all these products and services at each location and their employees and stores are equipped to do it all. Volume flexibility helps especially with seasonal demands. They can increase for instance their shovel inventory around winter time when demand for those products are much higher than in warmer months. They have supply chain capabilities of getting those items only when needed and not holding that huge inventory yearlong on site.
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