Source: Bastian Solutions
Best Buy is a leading omnichannel consumer electronics retailer headquartered in Richfield, Minnesota. Their vast product range is available through an extensive network of physical stores, online platforms, and mobile applications. Recognized as the largest retailer in U.S. consumer electronics, Best Buy serves over 50 million customers with over 1,000 stores and 85,000 staff across the U.S. and Canada.
The company faced a surge in e-commerce activity that stretched their existing logistics network to its limits. With a rapidly expanding online order volume and a growing number of Stock Keeping Units (SKUs), Best Buy's traditional warehousing solutions struggled to keep pace with customer expectations for speed.
«We went to Europe, visited multiple sites, looked at cranes, looked at AGVs, and then we found AutoStore. We knew without a shadow of a doubt we had found the right partner with the right systems and technology. And importantly; AutoStore is scalable and offers the speed we needed. Speed was paramount for us.»
Mark IrvinChief Supply Chain Officer, Best Buy
To maintain their competitive edge and fulfill their commitment to next-day delivery across the United States, Best Buy needed a trusted technology provider. They turned to AutoStore and Bastian Solutions for a large-scale overhaul of their logistics infrastructure. This involved implementation of eight AutoStore systems at locations across Best Buy’s network. As Mark Irvin, Best Buy’s Chief Supply Chain Officer explains: “AutoStore has been an incredible partner. And when I say partner, they’re the type of partner you can come to and say, I’m trying to figure this out. What should we do? And that moves you from just somebody I work with to a partner and a friend.”
Best Buy turned to AutoStore and Bastian Solutions for a large-scale overhaul of their logistics infrastructure. | Source: Bastian Solutions
Best Buy faced critical logistical challenges triggered by a surge in e-commerce demand. As consumer purchasing shifted online, the company had to swiftly adapt to a market where customers increasingly expected next-day or even same-day delivery. The expansion of SKUs, coupled with just-in-time inventory strategies, rendered traditional warehouse operations inefficient and created significant bottlenecks in storage, picking, and distribution.
Best Buy’s fulfillment model struggled to accommodate increasing order volumes, proliferation of smaller shipment sizes, and increasingly diverse inventory requirements. To overcome this, they needed a rapidly deployable, scalable solution capable of optimizing space use, streamlining processes, and enhancing the fulfillment process. Crucially, the solution needed to efficiently support both e-commerce fulfillment and store replenishment operations without expanding their physical footprint.
«Before we installed this warehouse automation system, everyone wanted to know what we were going to do to compete in the e-commerce space. People don’t ask that anymore, and we can focus on other things.»
Wes WhalbergFormer Senior Director of Innovation and Field Operations, Best Buy
Best Buy implemented eight AutoStore systems across the U.S., forming the backbone of their revamped logistics network. These were installed in five Regional Distribution Centers (RDCs) and three Metro E-commerce Centers (MECs) to operate as the core fulfillment engine.
Structure and layout
Automation and software integration
AutoStore integrates with conveyor belts, facilitating the transport of goods between storage, picking stations, and shipping areas. | Source: Bastian Solutions
Picking and delivery
AutoStore supports segregated tote delivery, allowing products to be separated for specific sections of a store, reducing restocking time. | Source: Bastian Solutions
Rob Bass, Former Chief Supply Chain Officer at Best Buy, explains some replenishment and restocking benefits: "When it comes to store replenishment, most of what we ship now is at the ‘each level’ in a repack, we can give them segregated tote deliveries that are clearly marked for which area of the store — they can walk those totes right out to the appropriate aisle and save thousands of store replenishment hours, getting those products quickly on the shelves for our customers."
«AutoStore has addressed all our storage, picking, and distribution issues, setting us up for future growth.»
Rob BassFormer Chief Supply Chain Officer, Best Buy
The AutoStore system offers several benefits to Best Buy:
«It has been set up to provide shipping options that we never had possible before. We can think of new ways of fulfilling products out of this system that we weren’t able to do (previously) for any amount of money.»
Wes WhalbergFormer Senior Director of Innovation & Field Operations, Best Buy
AutoStore’s intuitive interface and automated workflows make the system user-friendly, enabling new hires to get up to speed quickly. | Source: Bastian Solutions
The implementation of AutoStore systems across Best Buy's distribution network, empowered by Bastian Solutions, has solved all the challenges they identified. As Wes Whalberg, Former Senior Director of Innovation & Field Operations at Best Buy explains: "We had a perfect storm happening. We had SKU growth, it was off the charts (with) new products coming out all the time. We had an e-commerce explosion, which made picking more and more challenging. And we had just-in-time inventory problems where everything was shipped to us in smaller and smaller quantities. The AutoStore was designed to address all of that, plus set us up for future growth."
The implementation of AutoStore systems across Best Buy's distribution network has solved all the challenges Best Buy identified. | Source: Bastian Solutions