Lowe's Companies, Inc. · NYSE:LOW
Lowe's Companies — Investor Day (December 2022)
15 slides from Lowe's Companies's investor day presentation, Dec 7, 2022
Slide 1: 2022 Analyst & Investor Conference
2022 Analyst & Investor Conference D E October Friday, CEM BER 7, 2022 8, 2021
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “c
Slide 3: Supply Chain
Supply Chain D O N F R I E S O N , E X E C U T I V E V I C E P R E S I D E N T, S U P P L Y C H A I N
Slide 4: Our supply chain
Our supply chain B U I L D I N G A W O R L D - C L A S S O M N I C H A N N E L S U P P LY C H A I N Network Capacity Flow Management Omnichannel Market Delivery and Service and Optimization Fulfillment
Slide 5: Supply chain overview
Supply chain overview Regional Distribution Centers (RDC) Pro Fulfillment Parcel Stores Center (PFC) 16 Since 2018, added nearly MILLION Flatbed Distribution Online Fulfillment SQUARE Total Home Centers (FDC) Centers FEET …with 100+ facilities in the network Bulk Distribution Coastal Holding Centers
Slide 6: Smart and flexible supply chain
Smart and flexible supply chain Expanded coastal holding Expanded capacity across Agile nodes that can facility network supply chain network replenish & fulfill Enables faster Supports greater Enables Lowers cost Improves response to seasonal import volume– localization efforts to serve customer exp
Slide 7: Transitioning from store delivery model…
Transitioning from store delivery model… I N E F F I C I E N T A N D O V E R LY C O M P L I C AT E D 1 1 Vendor 2 Bulk DC Time-consuming 3 in-store sales process 4 4 5 6 7 Customer SKU…x SKU…x SKU…x SKU…x 8 SKU…x SKU…x Non-optimized Customer Store Stockroom Storage Containers Delivery
Slide 8: …to big & bulky market delivery model
…to big & bulky market delivery model F U L LY R O L L E D O U T I N 2 0 2 3 1 Streamlined, customer-focused process Vendor 2 Customer Product Qty Freezer 3 Bulk DC 3 Online Scheduling In-store 4 Cross-dock Terminal 3PL Delivery Customer Enhances Appliance leadership position, improved inventory tur
Slide 9: Leveraging store backrooms
Leveraging store backrooms L O W E ’ S S TO R E S O F F E R A C O M P E T I T I V E A D VA N TA G E W I T H 1 0 , 0 0 0 S Q U A R E F O O T B A C K R O O M S Enhanced Parcel BOPIS for Pro Paint Fulfillment Store Network Online-Only SKUs Wider product selection DIY Customer
Slide 10: Market delivery
Market delivery E X T E N D I N G B E N E F I T S O F M A R K E T D E L I V E RY TO P R O F L AT B E D D E L I V E R I E S Wider product Better customer Optimized Incremental Lower Improved selection experience delivery sales damages inventory turns DIY AND PRO CUSTOMER LOWE’S
Slide 11: Pro fulfillment network
Pro fulfillment network ENHANCED PRO C U S TO M E R E X P E R I E N C E M U LT I - P R O N G E D A P P R O A C H , L E V E R A G I N G C O M B I N AT I O N OF EXISTING ASSETS AND NEW PRO FULFILLMENT CENTERS Greater productivity— Big & Bulky never leave the Market Delivery jobsite 0 Fast & simple Pro
Slide 12: Parcel & gig network fulfillment
Parcel & gig network fulfillment S P E E D A N D E F F I C I E N C Y T H R O U G H A C U S TO M E R D E M A N D - D R I V E N F U L F I L L M E N T E C O S Y S T E M Enhancing parcel fulfillment capabilities Gig networks handling same-day delivery
Slide 13: Supply chain PPI
Supply chain PPI PERPETUAL PRODUCTIVITY IMPROVEMENT (PPI) Robotics & automation Technology Operational Enablers Simplification Modernizing technology Improving capacity & flow Frictionless Customer Simplified Selling & Associate Experience Process standardization
Slide 14: ESG-focused operational efficiency
ESG-focused operational efficiency D R I V I N G E F F I C I E N C Y & S U S TA I N A B I L I T Y A C R O S S O U R S U P P LY C H A I N Building efficiency Waste management Electrification of assets Reducing miles driven
Slide 15: Supply chain recap
Supply chain recap B U I L D I N G A W O R L D - C L A S S O M N I C H A N N E L S U P P LY C H A I N T H AT ’ S S M A RT E R , FA S T E R A N D M O R E F L E X I B L E Network Capacity Flow Management Omnichannel Market Delivery and Service and Optimization Fulfillment