11/16/09
RIV Helps Remodel Home Depot’s Supply Chain with Rapid Deployment Center
In October 2009, Home Depot awarded RIV Construction Group the contract for the construction of one of its new Rapid Deployment Centers (RDCs), which will be located in Campanelli Business Park of Westfield, Massachusetts. The massive undertaking consists of complete site development and new construction of a 657,000 square foot building set on a sprawling 75-acre site.
Drawing on its experience with Home Depot spanning 18 years and more than 75 projects, including the first Home Depot Superstore in Union, NJ, RIV Construction Group had teams in place to begin site work on the Westfield RDC within just four days of being awarded the $27M project.
Project Background
After 30 years of world-wide success in the home improvement retail business, rapidly changing market conditions prompted Home Depot to make increased productivity and efficiency a major strategic focus for the future. Part of Home Depot’s new focus is to streamline its operations by overhauling its supply chain process. In the past, suppliers shipped products directly to the stores, which were large enough to act as their own distribution centers. As Home Depot’s business model changed from building stores averaging over 100,000 square feet to smaller stores in its secondary markets with less inventory space, the company needed to address the new challenge of an increasing number of out-of-stock items.
Central to the success of Home Depot’s initiative to improve a store’s ability to replenish stock easily, and therefore reduce both “out-of-stocks” and sales forecasting errors, is the construction of 24 Rapid Deployment Centers (RDCs). These centers will be strategically located across the country by 2010. Instead of the old direct-to-store delivery model, large deliveries from suppliers are quickly sorted at the RDCs first and then distributed to many stores in a targeted area, most often within 24 hours of arrival.
Upon completion, scheduled for November 2010, the Westfield RDC will provide distribution services to 114 stores throughout New England. “What the whole network is about is providing on-time and accurate service to our stores so that they can focus on the customers,” says Mark Holifield, Home Depot’s senior vice president of supply chain.*
*quote source: DC Velocity
3/07/09
RIV Construction Group Builds First Home Depot Superstore in Union, NJ
RIV Construction Group recently completed its most impressive effort to date for Home Depot, the world's largest home improvement specialty retailer, by creating the first Home Depot Superstore located in Union, NJ. Building on a longstanding successful relationship, the retail giant awarded RIV Construction Group an $11.7M contract for the 250,000 square-foot store, the largest of its 2,274 stores worldwide.
Creation of the new superstore involved combining the footprint of a closed Home Depot Expo Design Center with an adjoining Home Depot retail store. RIV Construction Group performed a complete renovation of both buildings, and the massive new superstore now boasts twice the square footage of most other Home Depot structures.
Unlike previous store tests that Home Depot tried as separate concepts, the Home Depot Superstore layout is a variation of the company’s core retail warehouse format. "The superstore concept is a test. We're trying to bring the best of both worlds from the Expo concept and a regular Home Depot under one roof," said Mike LaFerle, vice president of real estate at Home Depot. “If successful, the superstore concept could roll out to the top 50 markets across the country,” LaFerle said.*
*quote source: Atlanta Journal-Constitution
