Supply Chain Internal Improvement
The retailer is revamping older systems. "The transportation management system for inbound, mostly our carriers that deal with delivering product to Best Buy, was primarily put in place to replace an existing system that we had in Best Buy for the last twelve years. Although it was working fairly well, it was rather antiquated," Dow explained.
Ultimately, Best Buy is revamping and optimizing its logistics in five phases covering different areas: transportation network (inbound); Logistics network; carrier bid optimization; outbound logistics; and freight payment.
For example, Dow said, revamping the logistics network entails "taking a look at our distribution center and appliance warehouses. What would be the optimal number of distribution centers?"