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Reduced Logistics costs: Rather than shipping thousands of orders to Home Depot locations, suppliers and vendors now build aggregate orders for the RDCs. These facilities,
Reduced Logistics costs: Rather than shipping thousands of orders to Home Depot locations, suppliers and vendors now build aggregate orders for the RDCs. These facilities, in turn, spread products throughout the company's network. As a result of the economies of scale, logistics costs both into and out of the RDCs have decreased considerably, and suppliers are better able to manage production runs. Lesser Flow-through time: Flow-through is usually totally handled on the same day that the product reaches the RDC. Instead of using a less-than-truckload hub for last-mile delivery, RDC allows Home Depot to use its core network to do it much faster. Shorter Replenishment time: Even if a large client comes into a store and buys all of a certain SKU, the overall time it is out of stock is substantially shorter than it was before RDCs
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