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Improving Furniture Logistics: Where to Start?
Scott Hothem • July 16, 2014
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:
- Furniture should not be treated or packaged like other goods. Other products tend to damage it, so it should be shipped with other furniture
- Furniture requires specialized, manual handling as mechanical equipment is more likely to damage it.
- Container loading strategies create interlocking sections to enable stability and accommodate multiple stops. (In the logistics industry, this is called “filling the cube”.)
- Furniture has inherent flaws. As the “touches” increase, so does the damage.
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.
- Collaborate With Partners – It’s critical that you take a look at the entire supply chain and evaluate everything. Identifying the collaborative partners who are interested in developing customized solutions for your company is a great start in helping you achieve your supply chain goals.
- Evaluate Sources of Damages – Damages are the number one headache in furniture distribution. One of the main causes of damaged furniture is poor packaging. Take a hard look at the current packaging system. One scratch on a delicate piece of furniture can create a negative ripple in both your supply chain and company image. Once furniture is damaged, it is costly to repair, and it cannot re-enter the new product stream. Furthermore, if not caught within the supply chain process, damaged products delivered to the customer will create adverse feelings towards your company. In an effort to minimize these situations, it is wise to invest more resources in a customized packaging solution. In the long run, you will save your company time and money.
- Current Distribution Strategy – The two main options for delivery are direct to store (Full Truck Load -TL) and consolidated delivery (Less Than Truck Load-LTL). The consolidated delivery option is a more expensive option, and it has a higher likelihood of delivering damaged furniture. However, in order to qualify for a direct to store option, you must have enough volume to merit the full shipment. Developing a strategy that balances cost, delivery time and minimizes damage can help increase efficiencies for your company.
- Visibility – This is a challenge for most furniture companies today. By investing in visibility technology, everyone involved in the supply chain, including the end-user, benefit greatly. For your company, information can be the difference between maintaining a relationship and losing the business. For the customer, these transparent tools provide real time information, so they are not left guessing about when their shipment will arrive. These same tools can also help furniture companies forecast and plan for future changes within the industry. By having the technology in place, you will provide your company with the flexibility needed to remain relevant in the industry.
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.
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Are you struggling to keep up with order fulfillment for your apparel brand? Or are you just beginning to explore third-party logistics to see if it aligns with your business goals? Either way, this guide is for you. Managing order fulfillment in the apparel industry—online or in physical stores—comes with many challenges. Warehousing, packing, shipping, logistics, returns, tracking and customs clearance require significant time and resources. With limited hours in the day, handling all these aspects yourself can quickly become overwhelming (and that’s probably why you’re here). Hiring additional staff may help, but it also increases operational expenses and can complicate supply chain efficiency. The Solution: Partnering with a Trusted 3PL Barrett Distribution specializes in handling logistics and fulfillment operations for top apparel retailers and manufacturers. Outsourcing fulfillment to a trusted 3PL partner like Barrett saves costs and enhances efficiency. This guide will break down the key benefits of working with a 3PL provider and how to choose the best one for your needs. Understanding 3PL in Apparel Fulfillment A 3PL provider manages your inventory’s storage, fulfillment and distribution. This includes warehousing, order picking, packing and shipping. Many 3PLs also handle customer service and returns. Why should you outsource apparel fulfillment instead of managing it in-house? Cost Efficiency – You pay only for processed orders instead of maintaining a full-time logistics team. Improved Fulfillment Processes – Faster, more reliable order fulfillment enhances customer satisfaction. Let’s explore how 3PLs work and why they are game-changers for apparel businesses like yours. How Does a 3PL Work? While 3PL services can support a wide range of industries, here’s how they work specifically for apparel brands: Step 1: Choosing a 3PL Partner Selecting the right 3PL is a critical process. The provider you choose will integrate into your operations and support your long-term growth. Keep in mind that 3PL services differ from freight forwarding or on-demand warehousing. Understanding these differences will help you make a more informed decision. Step 2: Sending Your Inventory Once you’ve chosen a 3PL provider, you’ll send them your inventory for warehousing. This ensures order fulfillment begins as soon as a customer makes a purchase. Step 3: Storing Inventory Your 3PL partner will store your inventory in strategically located warehouses for easy retrieval and shipping. This optimizes fulfillment speed and reduces delivery times. Step 4: Order Picking and Packing When a customer places an order, the fulfillment process begins. The item ordered is retrieved from storage, packed securely and prepared for shipping. Depending on your provider, this process may be managed manually or with advanced inventory software for greater speed and accuracy. Step 5: Shipping After an order is packed, it is shipped to the customer. Some 3PL providers handle shipping directly, while others partner with major carriers. Confirming your 3PL’s shipping capabilities is important before signing a contract. Step 6: Handling Returns Returns are an inevitable part of e-commerce. Many 3PL providers offer reverse logistics solutions to manage returns efficiently and maintain customer satisfaction. Benefits of Using Barrett Distribution for Apparel Fulfillment Is investing in a 3PL the right move for your business? The answer is YES. Here’s why: 1. Increased Efficiency Managing an apparel business requires focusing on design, marketing and customer engagement. Offloading logistics allows you to concentrate on these core areas without being bogged down by operational details. 2. Cost Savings Maintaining warehouses, shipping fleets and logistics infrastructure can be expensive. Barrett reduces these costs by leveraging existing infrastructure and volume discounts on shipping. Minimizing shipping errors and optimizing order fulfillment can also help reduce costly mistakes and returns. 3. Scalability As your business grows, so do your logistics needs. Barrett currently operates 25+ facilities across the United States. With over 6 million square feet of space specifically designed for warehousing, distribution, transportation and omnichannel eCommerce fulfillment, Barrett will scale your brand to ensure success. Barrett has over 80+ years of 3PL expertise and the resources to scale operations up or down based on demand, allowing you to expand without significant overhead costs. When Should You Consider a 3PL? Not every business needs a 3PL, but if any of the following apply, it may be time to explore outsourcing your logistics: You’re fulfilling 10+ orders per day – Managing fulfillment in-house may become too time-consuming and costly. You’re expanding and scaling operations – A 3PL can simplify shipping and customs management. You need faster shipping options – Two-day shipping has become an industry standard, and Barrett has the infrastructure to meet these expectations efficiently. Choosing the Right 3PL for Your Apparel Business Not all 3PLs are created equally. Some offer broad logistics solutions, while others, like Barrett, specialize in apparel and fashion fulfillment. When evaluating providers, consider: Technology Integration – Ensure the 3PL can integrate with your e-commerce platform for real-time inventory tracking and order processing. Warehouse Locations – Choose a provider with fulfillment centers close to your customer base to reduce shipping times and costs. Scalability – The 3PL should be able to accommodate your business growth. Return Management – A provider with strong reverse logistics capabilities will improve your customer experience. Barrett Distribution: Your Trusted 3PL Partner Since 1941 Are you looking for a trusted 3PL partner for your apparel business? Barrett offers personalized fulfillment solutions designed to help you scale and succeed. Contact us today to receive a complimentary supply chain consultation.
If you're an emerging e-commerce brand, you're likely facing one or more of the order fulfillment challenges listed below. This is a sign that your self-fulfillment strategy has outlived its effectiveness and that it's time to partner with an experienced e-commerce fulfillment provider. Selling directly to consumers offers well-known advantages—greater control over the supply chain, stronger customer connections and no intermediaries eating into profits. However, many brands struggle with the obstacles that come with scaling operations. As demand increases, fulfillment complexity grows, making it harder to maintain efficiency and profitability. A third-party logistics (3PL) provider can help solve these challenges. From lowering shipping costs and managing returns to improving customer experience, a 3PL ensures fulfillment runs smoothly, allowing businesses to focus on growth. Below are nine of the biggest e-commerce fulfillment challenges and how partnering with a 3PL can turn them into opportunities. Challenge #1: Scaling Fulfillment Efficiently Rapid growth can strain a brand’s fulfillment process, causing delays and inefficiencies. If fulfillment operations aren’t flexible enough to adjust during peak and slow seasons, costs can quickly get out of control. A 3PL provides scalable warehouse space and workforce solutions, so brands only pay for what they need. This eliminates the risk of high overhead from long-term leases or underutilized storage. Challenge #2: Logistics Taking Too Much Time Fulfilling orders manually may work for small businesses, but logistics can become overwhelming as demand grows. Managing inventory, packing orders and handling returns takes time away from marketing and product development. A 3PL streamlines these processes, allowing brands to focus on strategic growth rather than day-to-day fulfillment tasks. Challenge #3: Last-Mile Delivery Inefficiencies The last mile of delivery is often the most expensive and unpredictable. Traffic delays, inefficient routing and failed delivery attempts can frustrate customers and hurt a brand’s reputation. A 3PL with established carrier partnerships optimizes last-mile delivery, reducing transit times and improving accuracy. Logistics experts also identify inefficiencies, ensuring a smoother delivery experience. Challenge #4: Technology Integration Issues Order fulfillment relies on technology integrations. Without strong connections between an e-commerce platform, order management system and warehouse management system, brands risk inventory mismanagement and delayed shipments. A 3PL with pre-built integrations ensures visibility of real-time inventory and order tracking, preventing costly errors and streamlining operations. Challenge #5: High Shipping Costs Shipping is never truly free. Rising carrier fees, dimensional weight pricing and peak season surcharges make it difficult to offer competitive rates without sacrificing margins. A 3PL provides access to bulk shipping discounts and helps optimize packaging to minimize costs. Strategies like cartonization and carrier diversification reduce shipping expenses without compromising speed. Challenge #6: Maintaining a Strong Brand Experience Adding personal touches like custom packaging or product samples can enhance the unboxing experience, but these extras become harder to scale as order volumes grow. A 3PL with value-added services like kitting and branded packaging ensures a consistent brand experience at scale without slowing down fulfillment. Challenge #7: Managing High-Return Volumes Returns are inevitable in e-commerce. However, handling returns can be challenging, whether due to sizing issues, buyer’s remorse, or fraudulent practices. A 3PL simplifies returns management by integrating with leading platforms and offering self-service return options. Faster processing improves inventory turnover and enhances customer satisfaction. Challenge #8: Choosing the Right Fulfillment Location The location of a fulfillment center affects shipping costs and delivery speed. A facility that works today may become inefficient as customer demand shifts. A 3PL with multiple fulfillment centers provides flexibility, allowing brands to optimize fulfillment based on evolving customer needs. Challenge #9: Keeping Track of Inventory Managing inventory across multiple sales channels can be time-consuming. Without real-time visibility, brands risk stockouts, overstocking and wasted capital. A 3PL with advanced inventory management systems ensures accurate forecasting and efficient stock control, reducing the risk of supply chain disruptions. When to Transition from Self-Fulfillment to a 3PL Many brands start by fulfilling orders in-house for greater control, but this approach becomes less sustainable as order volumes increase. Warehousing, labor and shipping costs rise, and even minor disruptions can impact profitability. A 3PL helps brands scale without logistical headaches. By leveraging industry expertise, advanced technology, and a nationwide fulfillment network, brands can improve efficiency and customer satisfaction while staying focused on growth. Trust Barrett to run your supply chain so you can focus on growing your business. Barrett Distribution currently operates 25+ facilities across the United States. With over 6 million square feet of space specifically designed for warehousing, distribution, transportation and omnichannel eCommerce fulfillment, Barrett will scale your brand to ensure success. Contact us now for a complimentary supply chain consultation.
