Best Buy Retail Merchandising Fulfillment Solutions
As the leader in consumer electronics, Best Buy was using a legacy system for managing its weekly merchandising and goods not for resale. Multiple suppliers were providing print materials, while an in-house team managed purchasing, warehousing, and logistics. The existing processes experienced frequent delays and inefficiencies in kitting, assembly and distribution — meaning that stores weren’t receiving the marketing materials they needed on time.
Best Buy selected Group O to implement a turnkey solution for consolidating warehouse functions, including inventory management, kitting, assembly and distribution. Now, point-of-sale materials arrive on a weekly basis and are kitted and shipped based on store profiles. Returned goods are also sent back to Group O for disposition.
We implemented the solution in less than 100 days from conception to start date. The existing warehouse was used initially before moving to a new state-of-the-art facility — and existing staff was interviewed and re-badged as Group O employees.
Since implementing the merchandising management solution, Best Buy’s costs have been reduced by up to 35%. More than 1.2 million merchant kit pieces are sent per week — along with 500,000 goods not for resale. Material damage has been reduced and speed to market increased — with an on-time accuracy rate of 99.8%.
Even better, Best Buy recently selected Group O to begin managing print sourcing upstream — helping to drive even greater cost savings, quality control and speed to market. For Best Buy, the results have been nothing short of electric.