Best Buy delivers next day with redesigned logistics network

Mesut Kul

Best Buy is a worldwide, omnichannel electronics retailer enriching the lives of its customers through technology. To compete in today’s fast-paced e-commerce environment, Best Buy is revolutionizing its supply chain network, creating logistical efficiencies that seemed impossible in the past. The company implemented eight new AutoStore systems with 840,000 bin locations and over 1,000 robots. Best Buy can now serve customers better by offering free next-day delivery to 50,000,000 people and optimized store replenishment.

“Before this program, everybody wanted to know what we were going to do to compete in the e-commerce space… Nowadays people don’t ask that anymore, we can focus on other things. Working with Bastian has been amazing. We threw a lot of curveballs at them through the design process, implementation, and go live, and we still continue to throw curveballs at them because they keep hitting them.” – Wes Whalberg, Senior Director of Innovation & Field Operations, Best Buy

Key Technologies

  • In-depth engineering consulting study to redesign logistics network.
  • 8 locations
  • 5 Regional Distribution Centers (RDC)
  • 3 Metro Ecommerce Centers (MEC)
  • AutoStore goods-to-person order picking system

RDC

§  195 Robots

§  150,000 bin locations

MEC

§  73 Robots

§  30,000 bin locations

  • AutoStore pick stations with touch screen monitors
  • Exacta warehouse execution system
  • Manahattan warehouse management system
  • Pick-to-light devices at picking stations
  • 18,800 feet of Bastian Solutions’ conveyor
  • Automated tote labeling and banding

Results

Regional Distribution Centers (RDCs) allowed for large inbound shipments to be broken down to individual items. These items are then picked on an as-needed basis for store or replenishment to a Metro Ecommerce Center (MEC).

Segregated tote delivery allows for easy store replenishment while saving time.

The new logistics network allows Best Buy to offer free next day delivery to 50,000,000 people.

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