Presentation from NRF 2019 Retail's Big Show David Berry, Leader of Business Intelligence Global Custom Commerce, The Home Depot Jeff Huckaby, Global Segment Director, Retail and Consumer Goods, Tableau Chase Zieman, Director, Analytics Global Custom Commerce, The Home Depot

1. How The Home Depot uses machine
learning for vendor accountability

3. Jeff Huckaby
Global Segment Director, Retail and Consumer Goods, Tableau
Twitter: @huck5
Email: jhuckaby@tableau.com
LinkedIn: www.linkedin.com/in/jeffhuckaby
Thank you for attending

4. Out of the 2018 NRF Top 100:
85% are customers
All top 25 retailers are customers
Over 8,000 retail and consumer
goods companies around the
world
This exhibitor big ideas session is
developed, produced, and sponsored by

5. 2019 Retail Analytics Trends
1. Customer metrics take focus
2. Artificial intelligence goes to work across the
organization, providing tangible business value
3. Daily Flash Sales reporting finally evolves
4. 5G networks allow retailers to take a leap forward
5. Inventory awareness is taken to new levels
Read the full trends at
Tableau.com/Retail

6. David Berry
Director of Business Intelligence
David_Berry@HomeDepot.com
Chase Zieman
Director of Analytics and Data Science
Chase_Zieman@HomeDepot.com

7. • Secret Sauce or Bleeding Cost?
Business Overview
• Solving The Problem With Data
First Time Right & Remake Rate KPI
Infrastructure Overhaul Journey
• Big Idea #1 - Descriptive Analytics
Tableau To The Rescue
Exposing Insights & Assessing Penalties
• Big Idea #2 – Machine Learning
Problem Order Detection
• Actions and Outcomes
• Q&A
Agenda

9. • Originally implemented to boost customer
confidence in ordering custom window
coverings online thereby catalyzing large lifts
in conversion rate!
• Rising costs and limited visibility gave way to a
new analytical need
Customer Centric Policies

10. “If you don’t have time to do it
right,
when will you have time to do it
over?”
- Albert Einstein

11. Key Performance Indicators
First Time Right –
measures a frictionless
customer experience
Remake Rate –
number of units within an
order that have to be remade
because of policy or vendor
error
Data for demonstration purposes only.

12. Vrrroom Launch
- Improve Cost Visibility
- Focus on Customer Experience
Analytics Blueprint
- KPI data collection & data dictionary
- Tableau dashboard layouts
Vendor Performance Tracking
- Pivoted options and dimensions
- Margin and Cost info
- New ‘First Time Right’ KPI
- EDI transactions & shipping data
- Remakes & Credits
- Disposition data from Service calls
Timeline of Data Architecture
Route 66 Project
- Link remakes back to orders
- Remake/Credit reasoning
- Training for the front line associates
March 2016
Sept 2016
Dec 2016
May 2017
Sept 2017
April 2018
POD Kickoff
- Problem Order Detection
Autobahn
- Blinds.com launched on new
proprietary platform
- BI resources added
Solving the Problem with Data

13. Tableau To The Rescue…
Built out a robust, self-serve
Tableau Server environment
Data for demonstration purposes only.

14. Vendor Scorecard
• External Stakeholders
(aka our Vendors)
• Helps assess business and
offset costly penalties
Data for demonstration purposes only.

15. Problem Order Detection
• Custom Ensemble Machine Learning Model
• Scans millions of custom product permutations
• Self learns new problems / anomalies patterns daily
• Remake Probability x Remake Cost

16. Describe the Prescription
• Model Tuning
• Data Science Engagement
• Improved Customer Experience
• Financial Planning
• Improved P&L Forecasting
• Accurate Accruals
Data for demonstration purposes only.

17. Insights… Action… Outcomes
• Declines in Interactions Per Order
• Declines in Remake Rate
• Major increases in First Time Right
• Millions in annualized savings
• Improved Vendor Relationships
• We offer visibility
• They offer better pricing & flexibility

18. Key Takeaways
• Clearly define your problem
• Solve that problem with data
• Well constructed analytics can have massive ROI
• It takes organizational buy in

19. Questions and Answers
Tableau Booth #403
David and Chase have agreed to
answer questions for 30 minutes
after their presentation in
Tableau’s booth.

20. Thank you!
David Berry
Director of Business Intelligence
David_Berry@HomeDepot.com
Chase Zieman
Director of Analytics and Data Science
Chase_Zieman@HomeDepot.com