Home Depot logistics: Advice for shipping to Home Depot

Becoming a Home Depot supplier is a massive achievement for your business, but there’s a lot to learn about dealing with such a massive company, including its supplier freight rules and expectations. 

To help suppliers start off on the right foot with Home Depot logistics, the company created a thorough routing guide. What’s in the routing guide? We’ll explore some of the most important details included in the Home Depot routing guide below, from choosing carriers to labeling packages. 

Understanding the Home Depot routing guide

Home Depot distributes a comprehensive routing guide to all suppliers shipping within the U.S., Canada, and Puerto Rico. It outlines carrier assignments and shipping rules for all suppliers (regardless of their freight terms). 

Before you start sending shipments, you need to review the guide to ensure you fully comply with Home Depot’s requirements. You’ll find the routing guide in your Home Depot Supplier Hub (sign-in required).

Key Home Depot logistics requirements from the Home Depot routing guide 

Here are five major points from the routing guide:

Adhere to product and supplier guidelines

When preparing to ship goods to Home Depot, your products and practices must adhere to its Responsible Product Standards and Responsible Sourcing Supplier Manual. Both resources are comprehensive, explaining Home Depot’s expectations in detail. 

Carrier assignments

All suppliers must only use carriers assigned by Home Depot, as specified in the routing guide. The routing guide is updated regularly, so it’s best to check it frequently for the most updated information about approved carriers. 

Rapid distribution centers and direct fulfillment centers

There are two main channels for suppliers shipping goods to Home Depot stores: Rapid distribution centers (RDCs) and direct fulfillment centers (DFCs). You’ll typically send your freight to one of the many RDCs or DFCs across the U.S.

Additionally, Internal Freight Consolidation facilities (IFCs) are another key part of Home Depot logistics. IFCs consolidate smaller shipments into larger ones to keep transportation costs down and streamline shipping. 

Bill of Lading (BOL)

The Home Depot routing guide covers the bill of lading, a document that contains essential details about a shipment (e.g. quantity of goods, destination). 

When shipping multiple Purchase Orders (POs) to the same RDC on the same day, suppliers must consolidate shipments under one BOL. A master bill of lading is also required, which will cover the entire shipment. Failure to comply with BOL requirements can result in penalties. 

Timelines

Timelines are a critical part of the routing guide: 

• Home Depot considers Prepaid shipments to be On Time if it receives the PO on or before the expected delivery date. 
• Home Depot only considers Collect shipments On Time if the supplier has marked the PO as “ready to ship” in a transportation management system (TMS) by 11am local time at least two days before the pickup date. 
• The company requires a 90% threshold for On Time accuracy. 

Packaging and labeling standards

For efficient handling and inventory management, you should follow the packaging and labeling standards in the Home Depot logistics guidelines. Here are two key requirements:

• The label on each carton should carry essential information, such as the Universal Stock Number (USN), product description, quantity, purchase order number, supplier part number, and unit of measure.

• Barcodes must be in code 128 format and placed on two adjacent sides of a carton. 

Proper labeling helps prevent delays and ensures that shipments will be processed accurately at distribution centers. 

Complying with Home Depot logistics rules 

Violating the rules outlined in the Home Depot routing guide can lead to penalties (see below). Common violations include:

• Routing guide violations: Failing to follow prescribed carrier assignments. 
• Multiple bill of lading violations: Combining multiple purchase orders incorrectly on shipping documents. 
• Parcel PO violations: Purchase order numbers formatted incorrectly on parcel shipments. 

Compliance penalties

Home Depot can impose financial penalties if you fail to adhere to the routing guide. These include a $250 offset for routing guide violations and a $75 offset for multiple BOL violations. 

Work with a trusted shipping partner for Home Depot logistics

New Home Depot suppliers must adhere to the company’s intricate shipping requirements to avoid financial penalties and potential contract loss. 

Working with a shipping and logistics company is the simplest, most efficient way to get your Home Depot deliveries right. DTS can manage all the little details for you, leaving you free to focus on running your business. 

To learn more about how we can help, get in touch with DTS today.