Bed Bath & Beyond Inc. ( BBBY Quick Quote BBBY - Free Report) is progressing well on its transformation plan to deliver sustainable growth. In a latest development, the company made a strategic move in its transformation by partnering with Ryder System, Inc. ( R Quick Quote R - Free Report) to modernize its supply chain and improve its merchandise replenishment. The modernization of supply chain forms part of the company’s key operational transformation initiatives in a bid to build greater efficiencies and lower 'out of stock' occurrences to enhance customer experience. Being a renowned player in logistics and supply-chain solutions, Ryder will develop and operate two regional distribution centers in connection with the latest alliance. These centers will focus on minimizing product replenishment times at Bed Bath & Beyond and buybuy BABY stores to less than 10 days from the present 35 days. The new facilities are expected to create 300 new jobs each in the local communities. The first distribution center, which will be a one-million-square-foot modern facility and situated in Frackville, PA, has the room for expansion. Slated to open doors this fall, this address will offer merchandise to stores across the Northeast for in-store shopping and online shopping services including Buy Online Pickup in Store or Curbside, Same Day Delivery and Ship from Store. Similar to the first distribution center, Ryder will open the second facility next year in Southern California. The Bed Bath & Beyond-Ryder collaboration clearly demonstrates efforts of the former with respect to supply-chain initiatives. This is likely to bolster growth across the company’s omni-always shopping landscape and boost customers’ experience. Thus, Ryder’s solid capabilities and expertise will aid Bed Bath & Beyond in modernizing its supply chain and distribution network operations to enrich product offerings. What’s More?
We note that Ryder is Bed Bath & Beyond's third-party logistics provider, which will modernize its operations as part of its transformation strategy. Earlier this year, the company had teamed up with
Oracle ( ORCL Quick Quote ORCL - Free Report) , which is its Enterprise Resource Planning technology provider. Bed Bath & Beyond also partnered with RELEX Solutions to bolster its inventory management technology. These entities have been accelerating the company’s technology transformation for a while now. The omni-channel retailer had also earlier shared plans of allocating capital investments of $250 million to the reinvention of this business area in the next several years. The company is on track to extend its Owned Brands, which will help it cater to consumer needs across segments including bed, bath, kitchen and home decor. Bed Bath & Beyond unveiled the third brand from the line of Owned Brands called Squared Away. Squared Away mainly includes storage, organization and laundry care solutions for home, apartment or dorm room. This along with two other brands, namely Our Table and Wild Sage is launched ahead of the back-to-college season to make the most of the period. Hence, the company is quite focused on becoming a digital-first, omni-always entity. Over the past three months, shares of this currently Zacks Rank #3 (Hold) company have rallied 25.2% against the industry’s 9.2% decline. A better-ranked retail stock to consider is Five Below ( FIVE Quick Quote FIVE - Free Report) , which has an impressive long-term earnings growth rate of 32.5% and a Zacks Rank #1 (Strong Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here