In 2004, Best Buy announced its strategic intent to bring about a cultural transformation of the company by launching a program called “Consumer Centricity.” As Brad Anderson, the company’s vice chairman and CEO put it, “This enables us to engage more deeply with customers by empowering employees to deliver tailored products, solutions and services to customers through our stores, Web sites, call centers and in-home services.”
In short, Best Buy was proposing to turn the typical retail information flow on its head, from “top-down to bottom-up” where consumer demand would ultimately drive its operations and supply chain—from the factories halfway around the world, to the stockroom and to the cash register.
Best Buy epitomizes a paradigm shift that is making its way across the nation’s retail scene. Demand-driven supply networks (DDSN) as they are known, are based upon the premise that a well-oiled supply chain built upon providing maximum customer value and performance will correlate with enterprise profitability and market share leadership. When you add this to a supply chain that promotes vendor/supplier collaboration, you improve both sales and profits.