![]() … It makes both financial and partnership sense to use someone’s capabilities as opposed to try to build them yourself,” said Hartmann. “What we’re looking for is a partner who understands our business and has the competencies and capabilities that we don’t have today. The management team understands the value and importance of strong partnerships to fill gaps in the team’s expertise and the company’s supply chain. Unlike bigger general merchandise retailers, Bed Bath & Beyond is not built to build everything itself. Partnered with RELEX Solutions automated forecasting, planning and replenishment Selected ERP system from Oracle to replace legacy tech Updated stores with new signage, uniforms and lightingĮxpanded partnership with Google to enhance shopping experience Stores transformed into local fulfillment centers for e-commerce orders Plus a few newer tricks, but still nothing proprietary. However, these are very well-known and very well-exercised capabilities by others in the industry today.” Beyond isn’t reinventing the wheel here, just utilizing tried and tested methods of retail fulfillment that have been working for decades. In January, Hartmann called the intended new model for Bed Bath & Beyond “common sense.” He continued to say, “It is a meaningful pivot for Bed Bath & Beyond. “We believe this is a key first step in vastly improving our store replenishment approach.” While primitive may have put a little too fine a point on it, Hartmann called Bed Bath & Beyond’s store replenishment time “noncompetitive.” Once the four regional warehouses are up and running, the company expects to achieve many operational and business benefits over time, including reducing the store replenishment time to under 10 days. “We plan to establish four regional distribution centers to more efficiently and cost effectively manage the flow of merchandise to our stores,” Hartmann said during the company’s Q4 earnings call. According to Hartmann, BBBY is “working now through the final stages of selection” in its RFP process and will be making a public announcement soon. ![]() Currently, the retailer operates 30 cross-docks that consolidate vendor shipments but that number will retreat significantly as it moves toward regional warehouses run by one or more third-party providers. “We are asking our supply chain teams to really pivot quickly,” Hartmann told Supply Chain Dive in January. and Canada into regional fulfillment centers for local delivery, COO John Hartmann said.Īnother facet of its supply chain that is currently undergoing major changes is Beyond’s distribution network. ![]() The retailer also converted about 25% of stores in the U.S. In its fiscal 2021, BBBY is targeting to transform between 130 and 150 stores across the country, covering nearly 30 states, including 26 stores during the first quarter. Tritton and team are looking to transform ~450 stores over the next few years, which together represent ~60% of the company’s sales. The early stages of this investment are already underway both in physical and digital infrastructure projects. The investments are intended to bring forth a complete overhaul encompassing supply chain, technology, store network and design, and operations. Over the next three years, Bed Bath & Beyond will invest $250 million in its supply chain as it attempts to squeeze decades of supply chain transformation into months. Tritton, in an interview last February, said that overcrowded stores lead to “purchase paralysis.” Cutting down SKUs is only one part of solving for a much bigger paralysis within Beyond’s operations: store replenishment. After BBBY cut the number of options from more than a dozen to about three, sales rose. In fact, one of Tritton’s first initiatives as CEO was to think about how many different types of can openers the retailer should stock. That’s begun to change in the months since. The lights were still strange, daunting piles of product were still stacked from floor to ceiling and there were just way too many options for everything. When I returned to a store for the first time in ages early last year, I thought I had been teleported. My mother loves Beyond, so I spent many afternoons there growing up. Prior to former Target Head of Merchandising Tritton coming aboard as CEO, Bed Bath & Beyond seemed stuck in neutral, losing market share while forgetting to innovate. In a research note penned late last year, UBS analysts called Bed Bath & Beyond’s supply chain “primitive.” It’s a sharp take, but Beyond’s executives understand the company’s got a lot of catching up to do in many areas. This is an excerpt from Monday’s (4/26) Point of Sale retail supply chain newsletter sponsored by ArcBest.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |