Best Buy's Supply Chain Management Practices - A Customer-Centric Approach to Business

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : OPER083 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Supply Chain

Case Length : 15 Pages
Period : 1996-2009
Organization : Best Buy Company Inc.
Pub Date : 2009
Teaching Note : Not Available
Countries : US
Industry : Consumer Electronics Retailing


The case examines the growth of Best Buy from a small car stereo retailer to a market leader in consumer electronics retailing business in the US. Best Buy was appreciated for its customer-centric supply chain management practices. It extensively used information technology (IT) for managing its supply chain in its effort to optimize all supply chain processes. The company's technology driven initiatives help it take informed decisions on several aspects of business which resulted in higher customer satisfaction and loyalty. The case details how Best Buy managed its supply chain; the technologies it implemented in optimizing its supply chain, and how it modified its supply chain to fit the customer-centric approach it took to conduct the business.


Study the concept of customer centricity in supply chain management.

Understand the use of information technology (IT) in supply chain management.

Examine the concept of angel and demon customers in consumer electronics retailing.

Analyze the changes made by Best Buy in its supply chain in accordance with its customer-centric strategy.


  Page No.
Introduction 1
Background Note 2
Restructuring the Business 4
The Road Ahead 9
Exhibits 12


Best Buy, Supply Chain Management, Operating model, Customer-centricity, Circuit City, Consumer electronics retailing, Customer focus, End-to-end visibility, Restructuring, Logistics, Price Optimization, i2 Technologies, Angel and Demon customers, Customer segmentation, RFID tags, Operating Procedure, Inventory Management, In-bound Freight Operations, Event Management Solution, Collaborative planning, forecasting, and replenishment, Electronic Data Interchange, Customer Satisfaction

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