Bed Bath & Beyond Inc. entered a strategic partnership with Ryder System Inc. to modernize its supply chain, the Union-based home retail store announced on July 26.
Ryder will develop and operate two regional distribution centers that will reduce product replenishment times to Bed Bath banners Bed Bath & Beyond and buybuy BABY stores from 35 days to under 10 days.
This partnership with Ryder underscores Bed Bath’s supply chain goals, initiated in October when the company announced its plans to allocate $250 million of capital investments into supply chain reinvention over the next several years.
Hartmann
“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 Bed Bath COO John Hartmann, also the 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 selected Ryder after a competitive request for proposal process that began last year. The first regional distribution center will be a 1 million-square-foot space in Frackville, Pa. with the potential for expansion. It will serve throughout the Northeast for both in-store shopping and online shopping services such as Buy Online Pickup in Store or Curbside, Same Day Delivery, and Ship from Store.
This distribution center will open this fall with a second one planned for Southern California next year. Both facilities will create approximately 300 jobs in their 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, in a prepared statement. “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.”
Earlier this year, Bed Bath selected Oracle as its first Enterprise Resource Planning technology provider and announced that RELEX Solutions, a retail-focused Omni-channel visibility tool, will provide real-time visibility into the supply chain. These programs allow Bed Bath to track merchandise stored and distributed by its regional distribution centers, enabling ability to plan and forecast product replenishment to improve in-stock positions and speed to market.
