HD Supply is one of the largest industrial distributors in North America.
We believe we have leading positions in the three distinct market sectors in
which we specialize: Maintenance, Repair & Operations ("MRO");
Infrastructure; and Specialty Construction. These market sectors are large and
fragmented, and we believe they present opportunities for significant growth.
We aspire to be the "First Choice" of customers, associates, suppliers
and the communities in which we operate. This aspiration drives our relentless
focus and is reflected in the customer and market centricity, speed and precision,
intense teamwork, process excellence and trusted relationships that define our
culture. We believe this aspiration distinguishes us from other distributors
and has created value for our shareholders, driven above-market growth and delivered
attractive returns on invested capital.
We serve our markets with an integrated go-to-market strategy. We operate
through approximately 550 locations across 48 U.S. states and six Canadian provinces.
We have approximately 14,000 associates delivering localized, customer-tailored
products, services and expertise. We serve approximately 500,000 customers,
which include contractors, government entities, maintenance professionals, home
builders and industrial businesses. Our broad range of end-to-end product lines
and services include approximately 850,000 stock-keeping units ("SKUs")
of quality, name-brand and proprietary-brand products as well as value-add services
supporting the entire life-cycle of a project from infrastructure and construction
to maintenance, repair and operations.
We believe our long-standing customer relationships and competitive advantage
stem from our knowledgeable associates, extensive product and service offerings,
national footprint, integrated best-in-class technology, broad purchasing scale
and strategic supplier relationships. We believe that our comprehensive supply
chain solutions improve the effectiveness and efficiency of our customers' businesses.
Our value-add services include customer training, material and product fabrication,
kitting, jobsite delivery, will-call pickup options, as well as onsite managed
inventory, online material management and emergency response capabilities. Furthermore,
we believe our product application knowledge, comprehensive product assortment,
and sourcing expertise allow our customers to perform reliably and give them
the tools to enhance profitability.
We reach our customers through a variety of sales channels, including professional
outside and inside sales forces, call centers and branch-supported direct marketing
programs utilizing market-specific product catalogs, and business unit websites.
Our distribution network allows us to provide rapid, reliable, on-time delivery
and customer pickup throughout the U.S. and Canada. Additionally, we believe
our highly integrated, best-in-class technology provides leading e-commerce
and integrated workflow capabilities for our customers, while providing us unparalleled
pricing, budgeting, reporting and analytical capabilities across our Company.
We believe customers view us as an integral part of the value chain due to our
extensive product knowledge, expansive product availability and the ability
to directly integrate with their systems and workflows.
Since 2007 we have undertaken significant operating and growth initiatives
at all levels. We developed and are implementing a multi-year strategy to optimize
our business mix. This strategy includes entering new markets and product lines,
streamlining and upgrading our process and technology capabilities, acquiring
new capabilities and selling non-core business units. At the same time, we attracted
what we believe to be "best of the best" talent, capitalizing on relevant
experience, teamwork and change navigation.
Each of our businesses invest in high-growth initiatives that align with our
five growth plays:
Sell More to Existing Customers (i.e., Share of Wallet)
Introduce New Products and Services
Expand the Channels to Reach Our Customers (e.g., Internet, Catalog, Mobility)
Acquire New Customers
Enter New Geographies (i.e., Open New Locations)
Through investments in these growth plays, we believe we are well-positioned
to grow in excess of the markets in which we operate. Specific initiatives focus
on increasing penetration within our existing customer base, including the addition
of new sales talent across the Company and a training facility for our Waterworks
business to ensure we continue to have a highly trained sales force; and the
addition of new products and services, including proprietary brands, primarily
in our Facilities Maintenance business. We also continue to invest in mobile
technologies and e-commerce, and to acquire new customers, primarily through
sales talent acquisition and entering new geographies.
HD Supply is managed primarily on a product-line basis and reports results
of operations in three reportable segments. The reportable segments are Facilities
Maintenance, Waterworks, and Construction & Industrial—White Cap.
Other operating segments include Home Improvement Solutions and Interior Solutions.
In addition, the consolidated financial statements include Corporate, which
comprises enterprise-wide functional departments that operate in a centralized
structure.
Facilities Maintenance. Facilities Maintenance distributes MRO products, provides
value-add services and fabricates custom products. Our Facilities Maintenance
business unit serves the owners of multifamily, hospitality, healthcare and
institutional facilities. Products include electrical and lighting items, plumbing,
HVAC products, appliances, janitorial supplies, hardware, kitchen and bath cabinets,
window coverings, textiles and guest amenities, healthcare maintenance and water
and wastewater treatment products. Facilities Maintenance operates a distribution
center-based model that sells its products primarily through a professional
sales force, print catalogs and e-commerce.
Waterworks. Waterworks distributes complete lines of water and wastewater
transmission products, serving contractors and municipalities in the water and
wastewater industries for non-residential and residential uses. Our Waterworks
business unit serves non-residential, residential, water systems, sewage systems
and other markets. Waterworks reaches customers through a nationwide network
of regionally organized branches and operates a bid-based model, primarily for
municipal projects. Products include pipes, fittings, valves, hydrants and meters
for use in the construction, maintenance and repair of water and waste-water
systems as well as fire-protection systems. Waterworks has complemented its
core products through additional offerings, including smart meters (AMR/AMI),
fusible piping solutions and specific engineered treatment plant products and
services. Waterworks' services and capabilities allow us to integrate with our
customers and form part of their sourcing and procurement function.
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