Precision Deliveries Make
Store Openings Better at Best Buy®

Problem: Hard to Manage Fixture Freight
As Best Buy builds on its phenomenal success in consumer electronics, new store openings, remodels and resets are key to its sustained growth. They rely on the precision delivery of fixture freight to keep store openings and projects on track. But with several stores opening in a variety of U.S. markets each year, managing freight from up to 25 fixture vendors proved difficult. Best Buy needed a smarter, more efficient way to organize their supply chain.

 

Solution: Consolidate Vendors & Deliver On Time
Best Buy began working with Koch Logistics because they demonstrated the knowledge and flexibility to overcome these challenges. Koch partnered with Best Buy's team to customize a program that would simplify fixture freight by arranging consolidation and delivery of the product exactly when needed. Best Buy has also taken advantage of a wide range of additional services offered by Koch, including the coordination of warehousing, ocean and air freight, LTL shipping and online tracking.

According to Jennell Jorgenson-Johnson, Transportation/Logistics Manager for Best Buy, Koch's strong grasp of her needs – and their willingness to continue to learn and improve – makes the program successful.

"They understand our business and keep current on what our company is doing," said Jorgenson-Johnson. "I don't know how they do it because there is so much going on, but they do. They know us so well that they even catch our own errors. It's very impressive."

Koch Logistics has routinely demonstrated poise and smart decision making as problems arise. In one case, severe conditions blew off a corner of a roof and left 6 inches of water on the floor of a Best Buy store in Louisiana. With just one call from Best Buy and less than a day to react, Koch coordinated 15 loads on a case-by-case basis, arranging reroutes and finding temporary storage as needed. By providing a custom solution to this complex problem, Koch satisfied affected vendors, on site contractors and Best Buy.

"When I call Koch with a disaster they don't panic. They find a way to handle it," said Jorgenson-Johnson. "In Louisiana, they didn't have just one answer but had a unique response for each vendor shipment."

 

Result: Precision Timing Aids Store Growth
During their nine year partnership with Koch Logistics, Best Buy's fixture freight maintains a 98-99% on-time rate even as they've expanded into smaller, less accessible markets. Koch's reliability allows for precise scheduling of Best Buy's contractors and work crews, helping to avoid store opening delays.

"Koch's on-time record has made a huge impression on everyone," noted Jorgenson-Johnson. "They save money because my contractor doesn't have his people sitting around waiting for the shipment. We know exactly when it will arrive so they can schedule crews on the button."

Over the years they've worked together, Best Buy has grown from less than 300 stores to 935 and growing. As Best Buy has expanded, so has their trust in Koch Logistics' ability to improve their supply chain performance.

"We've always had a good line of communication with Koch Logistics and we continue to grow and learn from each other. Now they're working with us on new store openings as well as helping out on the product side."