Congratulations! You have just been hired as the Senior Vice President of a major furniture manufacturer. The first task at hand is to tighten all logistics operations. A report on your desk lists the three initiatives as: reduce costs, decrease damaged products, and increase customer satisfaction. Essentially, you need to overhaul the entire logistics function of this furniture manufacturer. Distribution and transportation has never been your specialty, so where do you begin?
Managing the complexity of furniture distribution can be overwhelming. In an effort to keep your sanity, you take a step back and review the basics of furniture logistics:
The basics of furniture logistics have not changed, but consumer demand and expectation has shifted over time. The days of investing in a piece of furniture that will be passed down for generations are vanishing. Most shoppers are buying only one piece at a time, as opposed to buying an entire room. As a result, online purchases have increased dramatically over the last several years. According to IBISWorld reports, 2013 online furniture sales revenue reached $9.0 billion, a growth of 10.4% from the previous year. For the furniture industry, this is both a blessing and a curse, as e-commerce has trained consumers to expect fast delivery.
In order to satisfy the challenges of your new job and meet consumer demand, you must focus on a few key sectors.
Effectively managing the supply chain of a major furniture manufacturer is a challenge for even the most experienced executive. The key to initiating change is to have a basic understanding of the distinctive components of the furniture industry. By taking a closer look at the aforementioned four areas within your current supply chain, you will be one step closer to resolving the initiatives assigned to you.
All Rights Reserved | Barrett Distribution Centers