Bed Bath & Beyond's COO says the Company is Pivoting to a 'Common-Sense' Supply Chain Model


Retail Dive | January 11, 2021


Bed Bath & Beyond's supply chain team is in for a year of change. COO John Hartmann and leadership made their case for a more modern Bed Bath & Beyond. Store-level services like curbside pickup and buy online, pick up in store are part of the solution as well as back-end reorganization.


Precise inventory management is gaining importance, with digital orders increasingly being fulfilled from stores. In the quarter ending Nov. 28, Bed Bath & Beyond fulfilled 36% of digital orders from stores and boosted total digital sales 94% YoY.


Plans to drastically reduce their 30 cross dock facilities will make way for a network of distribution centers, run by one or more third parties. Historically, stores had to wait 35 days for replenishment orders. With their plans, the hope is to reduce that down to the 10 days.

"What we're looking for is a partner who understands our business and has the competencies and capabilities that we don't have today," said Hartmann.


High sales volume could help Bed Bath & Beyond in its transition and increase efficiency in the supply chain. An expected $250 million investment to supply chain is part of the equation that will bring Bed Bath & Beyond back to sustainable growth, according to executives.


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