Bed Bath Beyond's turnaround hinges on a $250 million overhaul of its 'primitive' logistics. Here's how its COO plans to crank up supply chain speed.
Summary List Placement Bed Bath Beyond needs to get home goods to stores when they need it. That may seem like it should go without saying in retail, but it hasn't for a long time — and the company's efforts to carve out a new place for itself in the competitive home retail market depend on it. The retailer has been working with a logistics model UBS analysts once called "primitive." Today, when a store places an order for a product to replenish an empty shelf, it arrives around 35 days later — ages in today's speed-obsessed retail environment. But Bed Bath Beyond is going through a makeover of sorts. It's shaking up its product offering , leaving behind the old look of stores crammed from floor to ceiling for a more streamlined appearance. It's also embracing private label by developing eight exclusive, in-house brands to boost profits. The success of all of that new product rests on the retailer's ability to get the products to the right store in a timely manner in the first place. "It's critically important that we improve the domestic replenishment timeline," COO John Hartmann told Insider, just after the company reported a 6% year-over-year growth in comparable sales for the fourth quarter of 2020.
Bed Bath Beyond's turnaround hinges on a $250 million overhaul of its 'primitive' logistics. Here's how its COO plans to crank up supply chain speed.
Summary List Placement Bed Bath Beyond needs to get home goods to stores when they need it. That may seem like it should go without saying in retail, but it hasn't for a long time — and the company's efforts to carve out a new place for itself in the competitive home retail market depend on it. The retailer has been working with a logistics model UBS analysts once called "primitive." Today, when a store places an order for a product to replenish an empty shelf, it arrives around 35 days later — ages in today's speed-obsessed retail environment. But Bed Bath Beyond is going through a makeover of sorts. It's shaking up its product offering , leaving behind the old look of stores crammed from floor to ceiling for a more streamlined appearance. It's also embracing private label by developing eight exclusive, in-house brands to boost profits. The success of all of that new product rests on the retailer's ability to get the products to the right store in a timely manner in the first place. "It's critically important that we improve the domestic replenishment timeline," COO John Hartmann told Insider, just after the company reported a 6% year-over-year growth in comparable sales for the fourth quarter of 2020.