Article
First Things First
Can BBB leverage their supply chain to build back better?
September 8th, 2022 · By Rob Garrison
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Every week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of an on-going series. Each article aims to share a little insight into what's going on that week, and to help foster discussion amongst industry professionals across levels, geographies, and companies.
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Great article by Max Garland of Supply Chain Dive regarding Bed Bath & Beyond (BBB).
The BBB story reminds me a bit of former Apple executive Ron Johnson attempting to turn around JCPenney. His ideas were bold and ambitious, but in the end, it wasn't what their core customers wanted or expected.
When Mark Tritton came into BBB, he determined they should have less of a “scavenger hunt” approach and offer more private label merchandise in order to boost margins. Similar to the situation at JCPenney, the customers weren't onboard, and Mr. Tritton was forced out in June.
According to this article, Sue Gove, who has been appointed interim CEO, has determined Supply Chain is the number one priority. Specifically, optimizing infrastructure and increasing the speed of getting their product to market. Given that they are a top 100 importer per the JOC, I suggest that they start there on supply chain improvements.
On average imports take six months to go from order to receipt, by far the longest time to market in their network, and also likely is an area where they need modern technical infrastructure. Back of the napkin math—they are purchasing approximately $340,000,000 of imported products, expecting related sales for those products of between $700m to $1b.
I wish the very best to Sue and the BBB team. They have an iconic and popular brand that I sincerely hope can thrive in this environment.
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The BBB story reminds me a bit of former Apple executive Ron Johnson attempting to turn around JCPenney. His ideas were bold and ambitious, but in the end, it wasn't what their core customers wanted or expected.
When Mark Tritton came into BBB, he determined they should have less of a “scavenger hunt” approach and offer more private label merchandise in order to boost margins. Similar to the situation at JCPenney, the customers weren't onboard, and Mr. Tritton was forced out in June.
According to this article, Sue Gove, who has been appointed interim CEO, has determined Supply Chain is the number one priority. Specifically, optimizing infrastructure and increasing the speed of getting their product to market. Given that they are a top 100 importer per the JOC, I suggest that they start there on supply chain improvements.
On average imports take six months to go from order to receipt, by far the longest time to market in their network, and also likely is an area where they need modern technical infrastructure. Back of the napkin math—they are purchasing approximately $340,000,000 of imported products, expecting related sales for those products of between $700m to $1b.
I wish the very best to Sue and the BBB team. They have an iconic and popular brand that I sincerely hope can thrive in this environment.
Want to get the latest supply chain perspective straight to your inbox? Subscribe here for exclusive access.
About the author
A highly accomplished Global Supply Chain executive with 25 years of experience, Rob Garrison has provided strategic vision and leadership to Fortune 500 companies. Rob has an impressive history of building agile, technology-enabled supply chains, and he has an established track record of forging high-growth partnerships, positioning organizations for success and launching innovative technology solutions that significantly improve end-to-end supply chain efficiencies.
Rob is currently CEO and founder of Mercado Labs.
Rob is currently CEO and founder of Mercado Labs.
