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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When companies begin searching for a third-party logistics (3PL) provider, one of the first questions they ask is, "How much does it cost?" It's a fair question. Every business wants to understand pricing before making a significant investment in its supply chain. But if a 3PL is willing to send over a quote after only a brief conversation—or without asking any questions at all—it may be worth taking a closer look. The reality is that no two brands operate the same way. Even companies selling similar products can have completely different fulfillment needs. One brand may ship a handful of SKUs directly to consumers, while another manages thousands of products across ecommerce, retail, and wholesale channels. Those differences affect everything from warehouse space and labor to transportation, technology, inventory management. That's why the best 3PL partnerships don't begin with pricing—they begin with discovery. A strong logistics partner wants to understand your business before recommending a solution. They'll ask about your products, order volumes, growth plans, customer expectations, and sales channels. They'll want to know whether you're shipping directly to consumers, supplying major retailers, or managing both. More importantly, they'll take the time to understand where your business is today—and where you want it to be tomorrow. At Barrett Distribution Centers, that's exactly how every partnership begins. Rather than relying on standardized pricing sheets, our team takes a consultative approach. We work closely with prospective customers to understand their operational requirements, fulfillment profiles, technology needs, and long-term goals before developing a customized solution. It's a process that allows our engineering, operations, and customer solutions teams to design a fulfillment strategy that's built specifically for each brand—not a one-size-fits-all model. That extra time upfront often makes all the difference. Over the past eight decades, Barrett has helped brands navigate rapid growth, expand into new retail channels, and scale from startup operations into nationally recognized businesses. Those long-term relationships are built on understanding each customer's unique challenges before recommending the right solution. It's one of the reasons many of our customers stay with Barrett as they grow, rather than outgrowing their logistics provider. Barrett's focus on customized omnichannel fulfillment, retail compliance, technology, and continuous improvement enables us to support brands through every stage of growth. Choosing a fulfillment provider is about more than comparing prices. It's about finding a partner that's invested in your success and willing to learn your business before offering a solution. While discovery may take a little more time upfront, it often leads to a stronger partnership, a more efficient operation, and a fulfillment strategy designed to grow alongside your brand. Because in logistics, the best solutions aren't the fastest to quote—they're the ones built specifically for you.
