Best Buy automates, expands distribution network for holidays
Best Buy Co. Inc. is enhancing its supply chain with features including automated warehouse vehicles and a new delivery hub.
The consumer electronics giant is taking a number of steps across its supply chain designed to help ensure customers receive holiday purchases on time. These include leveraging third-party delivery partners, improving in-store inventory placement to prepare orders for curbside pickup more quickly, and more options for two-day, next-day and same-day shipping on thousands of items.
Customers will also be able to track the status of their curbside and locker pickups through the lock screen on their smartphone after alerting the store they’ve arrived. And for large product orders, in August 2024 Best Buy rolled out a live tracking feature that uses AI to help give to-the-minute updates on when their delivery will take place.
In addition, the retailer has expanded its delivery distribution center infrastructure and has begun implementing autonomous guided vehicles in one of its regional distribution centers:
New delivery distribution center
In time for the holidays, Best Buy recently opened its 20th delivery distribution center in Lancaster, Tex. This is the company’s second distribution center in the Dallas-Fort Worth area, and measures 800,000-sq.-ft. with more than 80 employees.
Best Buy opened the facility with the goal of helping to deliver more products to customers quickly and efficiently.
Autonomous guided vehicles
To further improve accuracy and reliability of orders as well as productivity and safety in its warehouses, Best Buy has begun implementing autonomous guided vehicles (AGVs) in its Nichols, N.Y. retail distribution center.
Currently, the facility has about 20 automated forklifts that handle nearly half of inbound pallets off delivery trucks. Benefits offered by AGVs include:
- Increasing warehouse storage capacity by operating in narrower aisles.
- Enhancing safety and freeing up employees to do more complex, skilled work only humans can do.
- Expanding hours of operation, which improves the workflow, creates faster delivery times, and allows employees to have more flexible schedules.
- Improving accuracy and decreasing damage by being able to handle products in a soft and predictable manner.
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"We know how important it is to our customers to get their orders on time and to have the inventory of products they’re wanting, especially during the holiday season," said Mark Irvin, chief supply chain officer at Best Buy. "These evolutions in our supply chain allow us to ship orders faster and get products to our customers on time, if not early. Our teams have been working hard behind-the-scenes all year long to help make this gifting season the best one yet."
Headquartered in Minneapolis, Best Buy Co. Inc. operates more than 1,000 retail stores in North America.
