Bed Bath & Beyond Inc. is “modernizing and reinventing its supply chain to significantly improve merchandise replenishment” through a partnership with Ryder System, Inc., according to an announcement on Monday (July 26).
Ryder will operate two regional distribution centers that will cut product replenishment times to both BBB and buybuy BABY stores from 35 days to less than 10 days. It’s the latest step in the company’s plans to overhaul its supply chain management as part of a $250 million capital improvement project.
The first facility will be a one-million-square-foot distribution center in Frackville, Pennsylvania, which is set to open in the fall. The company will open another distribution center next year in southern California.
“The modernization of our supply chain is one of our core operational transformation initiatives to create greater efficiencies and reduce ‘out of stock’ occurrences for our customers,” said John Hartmann, chief operating officer for Bed Bath & Beyond and president of buybuy BABY, in Monday’s company announcement.
“As we provide our customers with an omni-always shopping environment, it is imperative for our growth to invest in our supply chain to ensure that we are meeting the needs of the business and our valued customers. Ryder is a clear leader in logistics, and we look forward to leaning on their expertise and capabilities to help modernize our supply chain and distribution network operations,” he added.
Bed Bath & Beyond also announced plans last week to reopen its revamped flagship brick-and-mortar retail location in New York City. The 92,000-square-foot store is located in the city’s Chelsea neighborhood.
The flagship has a separate pick-up area to let shoppers retrieve their digital orders. Alternatively, shoppers can opt to have associates bring their orders outside for curbside pickup. Moreover, the flagship is among locations in a network that can provide same-day delivery orders across Manhattan.
Bed Bath & Beyond also plans to launch six Owned Brands ahead of schedule, remodel 450 stores, continue its goal to become a digital-first, omni-always retailer, and introduce a new brand positioning.
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