Case
Study
Home Depot
Evaluations for ROI Calculations and Budgeting
Situation
Home Depot, experiencing dramatic growth was having a difficult time managing the large volume of problems associated with their roofing portfolio. Although they didn’t fully understand the scope of the problem, they felt like they were constantly “playing catch-up” trying to address this mounting resource drain. After an initial consult and gap analysis, it was determined there was not even enough information on their portfolio to formulate a strategic plan to address the issues. They were stuck reacting to problems as they occurred.
Home Depot needed to get a complete understanding of the condition of their roofing systems to better understand the shorter than normal life spans they were experiencing and to begin the prioritization process for the large number of capital projects they were looking at over the next 5 years
Solution
inRevo2 performed roofing system evaluations on 1,982 locations spanning 208,270,393 sq. ft. Through the accumulation of system data and the application of proprietary algorithms, inRevo2 could provide an analytics program to determine system conditions, and accurately forecast system vulnerabilities and risks. inRevo2 delivered Home Depot with quantitative, data driven recommendations of the repair and maintenance necessary to deliver maximum lifespan and lowest overall cost of ownership.
Results
Gathering system information through evaluations is only part of the battle. The real magic is converting information in to intelligence. Facility operations are about dollars and cents. inRevo2 enabled Home Depot’s senior financial and procurement decision makers to ask their facility leaders right questions and to ensure that the financial perspective was clearly represented in facility decisions.
inRevo2 produced outstanding financial results for Home Depot. Projected annual roof replacements were reduced by 25% and system life-spans extended by 15%. inRevo2’s recommendations would reduce expenses by $8.6MM per year over the next 5 years. But there was more…
inRevo2 built an information repository where all system information was to be stored in a consistent format. With our help, Home Depot was able to set control points and benchmarks to quickly measure the success and failure of all new initiatives moving forward. A launching pad for all new development strategies to achieve lower costs of ownership and extended system life-spans.
As a prominent retail presence, Home Depot was also very conscious of managing their environmental footprint. By eliminating 524 roof replacements, Home Depot effectively removed 250,000,000lbs of waste (the equivalent of 5,700 filled semis) from local landfills.