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Bed Bath & Beyond Is Modernizing Its Supply Chain To Improve Customer Experience

US giant Bed Bath & Beyond has announced the next move in its transformation plan—the renovation of its supply chain. Aiming to accelerate inventory replenishment, the company is partnering with Ryder System, a transportation logistics and supply chain solutions company, to create and manage two regional distribution centers, which are expected to improve customer experience by slashing replenishment times from 35 days to less than 10.

The first distribution center is anticipated to be a 1 million-square-foot facility, constructed in Frackville, Pennsylvania. Products will be transported from the facility to Bed Bath & Beyond and buybuy BABY stores across Northeastern United States for in-store and online shopping services, such as Buy Online Pickup in Store, or, Curbside, Same Day Delivery, and Ship from Store.

The center is projected to open this coming fall. Ryder plans to open a second center in South California in 2022. In addition to improving customer service, these centers are expected to produce 300 new jobs in their surrounding communities.

“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 at Bed Bath & Beyond, and President of buybuy BABY in a press release.

Hartmann continued, “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.”

Bed Bath & Beyond’s partnership with Ryder reinforces the company’s commitment to its corporate-wide transformation strategy that was announced in late 2020. $250 million has been allocated for the purpose of keeping company operations up to date and up to contemporary customer standards. This initiative includes the selection of Oracle as the company’s ERP technology provider, and the recruitment of RELEX Solutions, a retail optimized omnichannel visibility tool, as its inventory management technology partner.

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