Bed Bath & Beyond to Reduce Replenishment Times from 35 to 10 Days

Jamie Grill-Goodman
Editor in Chief
Jamie goodman
a sign above a store

Bed Bath & Beyond Inc. will significantly improve its merchandise replenishment by 25 days as part of its ongoing supply chain initiatives.  

Through a strategic partnership with Ryder System, Ryder will develop and operate two regional distribution centers that will reduce product replenishment times from 35 days down to less than 10 at the retailer’s Bed Bath & Beyond and buybuy BABY stores.

The move underscores Bed Bath & Beyond's ongoing progress with its supply chain initiatives, as the company last October announced plans to allocate $250 million of capital investments in its reinvention of this critical business area over the next several years.

"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, COO for Bed Bath & Beyond, and president of buybuy BABY. "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 selected Ryder from a competitive request for proposal process that began last year. The first regional distribution center will be a one-million-square-foot modern facility, with the potential for expansion, located in Frackville, PA. It will provide merchandise to stores throughout the Northeast for both in-store shopping and online shopping services such as Buy Online Pickup in Store (BOPIS) or Curbside, Same Day Delivery, and Ship from Store. This regional distribution center will open this fall, and Ryder will then open a similar facility next year in Southern California. These two new facilities will each create 300 new jobs in their local communities.

"When we first started talking with Bed Bath & Beyond about its omni-always strategy, we knew our two companies would be a great fit," said Steve Sensing, president of global supply chain solutions for Ryder. "We share the same steadfast commitment to providing an elevated customer experience; and, in today's environment, that means meeting consumers where, when, and how they choose to engage. Ryder helps brands do just that, so our customers can focus on their core business."

The selection of Ryder as a third-party logistics provider continues Bed Bath & Beyond's investments to modernize its operations as part of a company-wide transformation strategy. This includes the selection of Oracle earlier this year as its Enterprise Resource Planning (ERP) technology provider and announcement of RELEX Solutions, a retail-focused omni-channel visibility tool that, among many benefits, will provide real-time visibility into the supply chain. These added technology solutions will enable the retailer to track the merchandise and products stored and distributed by these new regional distribution centers, enabling greater efficiencies and capabilities to plan and forecast product replenishment to improve in-stock positions and speed to market.

[Read more: Bed Bath & Beyond Testing Scan & Buy In New NYC Flagship]

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