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Bed Bath & Beyond is approaching its $250 million supply chain investment through a strategy that blends physical with digital.
ERP upgrades, inventory management systems, distribution centers and store-to-fulfillment conversions are all parts of modernizing a supply chain previously described as primitive.
Currently, it takes 35 days for the retailer to replenish its stores with inventory. The goal is under 10 days.
Bridging that 25-day gap starts with regional distribution centers, according to Hartmann.
It s a common-sense model, the COO said in January. Bed Bath & Beyond will move away from its network of dozens of cross docks that consolidate vendor shipments, toward regional warehouses that replenish stores.
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Summary:
Bed, Bath & Beyond has shaped an omni-channel credibility that seemed unlikely 18 months ago. Here s how CEO Mark Tritton s pulled it off.
We reformed the past, overcame extraordinary circumstances of the present, and established a firm foundation for the future.
That’s not a bad list of achievements for any non-essential retailer at the end of a year of operating against a pandemic backdrop, but it’s all the more impressive when it comes from the CEO of Bed, Bath & Beyond, a brand that not that long ago most of us were dismissing as Bed, Bath & Beyond Hope.
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Bed Bath & Beyond is in the early stages of a three-year, $250 million supply chain overhaul.
Right now it takes more than a month to get product into stores to replenish empty shelves.
The company is bringing in new talent, technology, and logistics providers to cut that time by 70%.
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.
Closures, banner divestitures send Bed Bath & Beyond net sales down 16% in Q4 retaildive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from retaildive.com Daily Mail and Mail on Sunday newspapers.
Operator
Welcome to Bed Bath & Beyond s fiscal 2020 fourth-quarter earnings call. [Operator instructions] Today s conference call is being recorded. A rebroadcast of the conference call will be available via webcast found on the company s investor relations website. At this time, I would now like to turn the conference over to Janet Barth, vice president of investor relations.
Please go ahead.
Investor Relations
Thank you, and good morning, everyone. Welcome to our fiscal 2020 fourth-quarter earnings call. On the call with us today is president and CEO, Mark Tritton; chief merchandising officer and president of Harmon Face Values, Joe Hartsig, chief operating officer and president of buybuy BABY, John Hartmann; and chief financial officer and treasurer, Gustavo Arnal. Before we begin, let me remind you that our fiscal 2020 fourth-quarter earnings release and slide presentation can be found in the investor relations section of our website at www.bedbathandbeyond.com and as exhibit