Best Buy: Proof That Spend Management Pays Off

Best Buy turned in strong Q4 performance in its latest earning announcement. According to the announcement, earning rose 23.6 "from continuing operations for a 15% growth in its revenues. The quarter was marked by robust sales, continued gross profit gains and better operating expense control." How did Best Buy do it? In part by a continued focus on Spend Management. According to the announcement "progress with the company's supply chain transformation" helped prop up the bottom line. Best Buy is no stranger to Spend Management investments. You can read about Accenture's work with the retailer which resulted in a $600 million decrease in inventory levels, among other benefits. You can also read Aberdeen's write-up from last year on how Best Buy deployed advanced invoicing capabilities "to reduce full-time resources by providing suppliers visibility into reconciliation and payment status, thereby reducing the number of supplier inquiries" in addition to providing improved spend data. By going beyond the Spend Management basics, Best Buy is continuing to deliver results in an always challenging retail market.

Jason Busch

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