➤ Key Highlights
Home Depot has managed to sail past two-day shipping speeds since then — 55% of its deliveries for in-stock SKUs today are made either the same day or the next day, more than triple its 2022 amount, per a company presentation.
Powering Home Depot’s acceleration are nearly 200 facilities the retailer has added over the past eight years to fill various roles in its supply chain, according to Broggi.
160 market delivery operations are cross-dock facilities that enable Home Depot to consolidate and sort big-and-bulky products like appliances.
20 direct fulfillment centers are locations close to customers that house popular SKUs and handle fulfillment.
17 flatbed distribution centers are buildings that specialize in handling big-and-bulky building materials.
Another reason for Home Depot’s shipping improvements is the company’s proprietary “ship from best location” algorithm, which analyzes the company’s distribution assets to determine the most effective way to deliver products to customers, Broggi said.
Home Depot has “essentially completed” the buildout of its market delivery operation, direct fulfillment center and flatbed distribution center networks, CFO Richard McPhail said at the conference.
A major retailer has increased its shipping speeds, now delivering over half of its in-stock products within one or two days. This acceleration follows the addition of nearly 200 new facilities and the completion of a buildout of key supply chain networks. Technology and enhanced logistics infrastructure have played significant roles in these improvements.
Applying a supply-side impact lens, this event demonstrates how large-scale infrastructure buildouts can directly influence the timing and capacity of logistics systems. The expansion and strategic placement of new operational assets allow for greater synchronicity and efficiency in supply networks. As supply chains become more complex, the ability to optimize and scale infrastructure shapes how quickly and effectively goods move from origin to end user. This highlights the critical role that physical network development plays in defining supply-side performance benchmarks.
⚠️ Why it matters now
For CRE360’s audience, the completion and activation of new logistics assets represent a shift in how supply-side infrastructure is designed and deployed. Developers, capital providers, and operators must consider how evolving facility typologies and network configurations affect project timelines and regional supply capacity. Understanding these supply-side dynamics is crucial for planning, underwriting, and executing logistics-focused real estate initiatives.
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➤ TAKEAWAY
With the major infrastructure buildout now complete, attention may turn to optimizing the performance of these assets and integrating technology for further efficiency gains. Stakeholders could monitor how such transformations influence future supply chain project scopes and timelines. As expectations for delivery speeds rise, the interplay between infrastructure design and operational strategy may continue to shape logistics sector priorities.
