Best Buy's Supply Chain Management Practices - A Customer-Centric Approach to Business

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Case Details:

Case Code : OPER083
Case Length : 15 Pages
Period : 2005-2009
Organization : Best Buy Company Inc.
Pub Date : 2009
Teaching Note :Not Available
Countries : US
Industry : Consumer Electronics Retailing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

At the end of 2008, Best Buy was operating a total of 3,942 stores under various formats world-wide. It relied on information technology (IT) to optimize all its processes right from the logistics to the price optimization stage.

Best Buy captured numerous interactions between its salespersons and its customers such as feedback on products, stores formats, and services to help it devise strategies for running its stores and other backend operations.

It also shared relevant data with its suppliers. This helped both Best Buy and its suppliers in rationalizing their operations.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Brad Anderson (Anderson), who was made Best Buy's CEO in 2002, was the brain behind the transformation of the company from a big box retailer⁴ to a customer-centric retailer. Anderson derived inspiration from the supply chain management of food retailers like Tesco⁵...

Excerpts >>

4] Big box retailers are those retailers with a huge floor space of more than 50,000 square feet, with a plain design resembling a large box. The strategy of such stores is to sell high volumes of goods at low prices and hence their margins are lower than that of other retailers.
5] Tesco is a UK-based multi-national grocery and general merchandising retail chain. It was founded in 1919 and is headquartered in England. It reported revenues of £ 59.4 billion and net profit of £ 3.1 billion for its fiscal year ended February 2009.

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