The term refers to a hypothetical list of twelve products or product categories available at The Home Depot that are considered particularly challenging or problematic for the retailer to manage. This might be due to factors such as low profit margins, high return rates, difficulties in stocking and handling, or supply chain complexities. For example, items like live plants, custom-ordered doors and windows, or specific types of lumber could potentially be included due to their unique operational demands.
Managing these challenging products effectively is crucial for maintaining overall profitability and operational efficiency. Understanding the factors contributing to the difficulty of handling certain products allows the company to implement strategies to mitigate associated challenges. This includes streamlining logistics, improving inventory management, negotiating better supplier terms, or even re-evaluating the product offerings themselves. The historical context might involve past experiences with specific product lines that prompted closer scrutiny of profitability and handling costs.