Bed Bath And Beyond Case Study

Proposed Solution

To remain competitive, Bed Bath and Beyond must upgrade its outdated and inefficient inventory system to a new more cost-efficient real-time solution. A real-time inventory system will substantially improve customer service, reduce inventory costs, and make it quick and easy for employees to find product in each store.

Background

From the personal experience of an employee, we have gained insight that although Bed Bath and Beyond provides one of the best customer service experiences in retail, improvements can always be made. With regards to training for one-on-one interactions with the customer, Bed Bath and Beyond exceeds many similar retailers’ standards, but no system is perfect. With certain levels of dissatisfied customers occurring on a common basis, we, at Corporate Stock-Efficiency Foundation, believe that a large majority of these unwanted occurrences arise from the inability to deliver a specific product to a customer in a timely manner. We also found that a dated, inefficient system for inventory leads to employee uncertainty, adding

We have identified four specific areas where a real-time inventory upgrade will ensure Bed Bath & Beyond’s high product margins and outstanding customer satisfaction remain while moving forward in a competitive retail landscape. A real-time inventory system will improve customer service and increase customer loyalty. The system will lower customer-backorder costs and drive more customers to Bed Bath & Beyond instead of closer-to-home big-box stores and online competitors. Inventory costs will be reduced by reducing the “bullwhip effect”, which will positively impact supply-chain operations and allow for reduced supplier costs. Finally, we will show how an in-store product reception and placement system improves in-store item placement and increased