502 case 1.docx - 1-12 What problems and challenges did...

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1-12: What problems and challenges did Home Depot experience? When Home Depot first opened, the company was not using much technology to manage inventory or other information systems. The items that consumers demanded were typically out of stock due to the poor inventory management system. Employees spent more time trying to restock inventory and because of this, less time with customers. By 2000, Home Depot had lost its competitive advantage to Lowes. This must have been the motivation needed to change because Home Depot then invested in various times of software and technology to streamline the business and make Home Depot more efficient. Despite the substantial investment in technology, Home Depot was still behind the curve as far as technological advancement. Inventory was still a manual job and this was eventually addressed with the use of regional distribution centers to more efficiently manage inventory. This also allowed employees to better serve consumers and provide better customer service. Online ordering was eventually offered and began to pay more
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