Transforming Its Supply Chain Presented by: Bastian Solutions FIND - - PowerPoint PPT Presentation

▶

Dec 18, 2023 253 likes •516 views

The Rise of the Urban DC How Best Buy is Transforming Its Supply Chain Presented by: Bastian Solutions FIND YOUR WOW Rob Bass Greg Conner Chief Supply Chain Officer Vice President of Sales Best Buy Bastian Solutions Marvin Logan Vice

SLIDE 1

FIND YOUR WOW

The Rise of the Urban DC – How Best Buy is Transforming Its Supply Chain

Presented by: Bastian Solutions

SLIDE 2

FIND YOUR WOW

Rob Bass

Chief Supply Chain Officer

Best Buy Greg Conner

Vice President of Sales

Bastian Solutions Marvin Logan

Vice President of Consulting

Bastian Solutions

SLIDE 3

FIND YOUR WOW

Objectives

1. Modernizing the Supply Chain
2. Analyzing the Right Data
3. Selecting the Best Technology

SLIDE 4

FIND YOUR WOW

Modernizing Best Buy’s Supply Chain

SLIDE 5

FIND YOUR WOW

The Right Team The Right Systems The Right Tools 5 The Right Network

SLIDE 6

FIND YOUR WOW

60%

Units shipped are re-pack

80% of

SKUs Eligible for Repack

Explosion In E-Commerce “Just in Time” Inventory

The Perfect Storm of Re-Pack & E-Commerce

SLIDE 7

FIND YOUR WOW

SLIDE 8

FIND YOUR WOW

SLIDE 9

FIND YOUR WOW Current RDCs + MECs

RDC MEC

Compton, CA Chicago, IL Piscataway, NJ Atlanta, GA San Francisco, CA Findlay, OH

SLIDE 10

FIND YOUR WOW

Process for Achieving New Supply Chain Initiatives

Data Analysis Summary 11

SLIDE 11

FIND YOUR WOW Network Modeling/Supply Chain Optimization

Channel Differentiation: MEDICAL

Supplies
Consumables
Controlled/Bio
Basics
Parts
Equippage

PHARMA

Sched II and III
Launch
Experimental/Sched I
Push
Basics (Fast and Slow)
Vital Stock (99.7%)
Bulk
Temp (DF, F, C, Ch, Cl)
Emergency/Disaster
Disease Control

SLIDE 12

FIND YOUR WOW

5

Validate

4

Design

3

Analyze

2

Measure

1

Define

Engineering Study Methodology

SLIDE 13

FIND YOUR WOW

20X 2-3X

Holiday E-Commerce Volume Spike Holiday Season Volume Warehouse to Stores

Retail Units

SLIDE 14

FIND YOUR WOW Sales Channel Characteristics Metric Retail E-Commerce

Units/Line 3.1 1.1 Lines/Order 160 1.65 Active SKUs/Day 6,400 1,640 Avg Lines/Day 53,500 5,000 Avg Units/Day 165,000 5,500

SLIDE 15

FIND YOUR WOW SKU Pareto by Sales Channel

% SKUs # SKUs % Retail Picks % E-Com Picks 1% 162 7% 35% 2% 324 13% 46% 5% 812 28% 63% 10% 1,624 46% 75% 20% 3,248 69% 87% 50% 8,120 96% 98% 75% 12,180 100% 100%

0% 20% 40% 60% 80% 100% 1% 7% 13% 19% 25% 31% 37% 43% 49% 55% 61% 67% 73% 79% 85% 91% 97% % PICKS % SKUS

SKU Pareto by Sales Channel

Retail Ecom

SLIDE 16

FIND YOUR WOW

Magnitude of Holiday Spike in Demand

Utilized MECs to quickly satisfy high demand in densely populated urban areas

6/1 7/1 8/1 9/1 11/1 12/1 1/1 2/1 3/1 4/1 5/1

SLIDE 17

FIND YOUR WOW

Overview of Solutions Overview of Solutions

SLIDE 18

FIND YOUR WOW

SLIDE 19

FIND YOUR WOW Throughput Comparison

Picking Throughput Response Time Expandability Storage Density Operating Flexibility

SLIDE 20

FIND YOUR WOW Why AutoStore?

MECs

SLIDE 21

FIND YOUR WOW Reduce Touchpoints Ability to Batch From GTP Port 1 AS/RS for Both Sites

SLIDE 22

FIND YOUR WOW RDCs

150,000 bins 195 robots

RDC

SLIDE 23

FIND YOUR WOW MECs

30,000 bins 73 robots

MEC

SLIDE 24

FIND YOUR WOW Computer Simulations Modeling

SLIDE 25

FIND YOUR WOW Process for Achieving New Supply Chain Initiatives

Build. Learn. Refine. Repeat.

Right Team Right Consultants Educate the Team

Define Scope Acquire Funding Vendor Selection Design Team Implementation Team

SLIDE 26

FIND YOUR WOW

Rob Bass : rob.bass@bestbuy.com Website: www.BestBuy.com Greg Conner : gconner@bastiansolutions.com Website: www.BastianSolutions.com Marvin Logan : mlogan@bastiansolutions.com Website: www.BastianSolutions.com Visit ProMat Booth S1603 27