Ron Guzzi – Sr. Manager Transportation Carrier Relations & Sourcing The Home Depot Ron Guzzi – Sr. Manager Transportation Carrier Relations & Sourcing

The Home Depot – Company Overview Founded in 1978 Largest home improvement retailer in the world Hover 2200 stores in US, Canada, Mexico and PR Over 400K employees .Com sales ~7% and growing at 20% YOY Supply Chain 90 DCs 18 RDCs in US – Make up 50%of what we sell Over $3B in Trans spend ~100 Domestic Carriers in our network We are an asset based shipper

Economic & Transportation Industry Trend Economy is expected to remain strong. Transportation industry is a leading economic indicator. Demand for capacity exceeds supply and trend is expected to continue for the foreseeable future. THD Mitigation Strategy GDP Trend THD will see rate increases which may be partially offset through a number of actions: Continue Core Carrier strategy Reinforce Shipper of Choice efforts (drop n hook network) Timely loading / unloading at vendors, DCs, and Stores Cross functional help from all departments (avoid spot market) Need timely flow of information from Supply Chain partners (improved forecasting/volume balance) Network modeling/optimization focus: Secure capacity thru dedicated and regional fleets Drive backhauls through unbundling efforts When the economy is strong and unemployment is low, few look to truck driving as a career. Drivers can earn the same compensation being an Uber driver or in construction and be home with their family nightly. Consequently, there is a driver shortage resulting in a “carriers market”, driving up rates to adjust for driver salary and recruitment costs. ELDs have resulted in drivers exiting the market as well.