Two years ago, Bed Bath & Beyond was obsolete. Prior to the pandemic, the company was mostly focused on over-the-counter sales.
“The pandemic has taught us all a tough lesson,” COO John Hartman said in his opening keynote at the Home Delivery World 2021 conference in Philadelphia on Wednesday. “In the case of Bed Bath & Beyond, it’s [we were] Behind the curve. “
The company’s executives, including Hartman himself, have taken over and refocused on technology, innovation, and delivering products to customers in the way they prefer.
“The company itself is undergoing a major transformation, not just the supply chain,” Hartman said, noting that he has invested $ 2.5 billion each in supply chain, technology, and in-store experience. Did.
It wouldn’t have happened without rethinking the supply chain.
“We evaluated our abilities and evaluated third parties,” he said. “We have a great deal of respect for the past, but we recognize the need for it. [to focus on the present and future].. For us, it’s a balance between stores and digital. “
The transformation of the Bed Bath & Beyond supply chain is the Ryder System (NYSE: R) Announced in July.
Rider Develop and operate two regional distribution centers Designed to reduce store replenishment time from the current 35 days to less than 10 days. The first facility in Frackville, Pennsylvania is already open, reducing store replenishment time in the region to 10 days. The one-million-square-foot facility already contains some automation, but Hartman was teasing that more would be added in January.
The second facility will open in Southern California early next year. Both facilities supply stores to assist in the submission of both in-store inventory and online shopping inventory, including online purchases, in-store pickup, carveside pickup, same-day delivery, and in-store shipping. increase.
The move to distribution centers is a major shift to the company’s supply chain, which traditionally relied on cross-dock facilities. According to Hartman, the system brought about both overstock and understock conditions in stores.
“It was disappointing for our customers,” he said.
Supply chain transformation goes beyond the transition to distribution centers and embraces the renewal of the company’s technological capabilities.
Bed Bath & Beyond has modernized its technology by partnering with Oracle on its enterprise resource planning platform and adding a Google Cloud partnership. We are updating the core merchandising function and inventory management.
“Transformation is rolling up your sleeves. It’s a daunting task. You hit your elbows and rub your knees,” Hartman said. “Manage fires when needed, but stay focused. [on the goals].. “
May, Bed Bath & Beyond Announcement of agreement With DoorDash (NYSE: Dash) We provide same-day delivery.The company also has Contract with Shipt and Instacart As part of its “Omni Always” fulfillment strategy Roadie was added in July.. Together, these networks currently offer delivery to nearly 18,000 zip codes in the United States, Hartman said.
“The future mind and lungs of this business depend on a good supply chain,” he said.
As an extension of its supply chain, the company has also expanded its purchase curbside and in-store pick-up service to include the ability to pick up purchased purchases the night before curbside, that is, before the store opens the next day. Pickups start at 8am at the earliest in many places. In addition, all online purchases, in-store pickup, and curbside pickup will be available within one hour of purchase. The pickup time used to be 2 hours.
“Our customer expectations have changed and we have been forced to meet them,” Hartman said.
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