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

2. 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

3. 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.