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Improving Furniture Logistics: Where to Start?
Scott Hothem • Jul 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 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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As a third-party logistics provider with over 80 years of experience in the industry, Barrett Distribution understands that speed and accuracy are crucial. E-commerce brands need their orders picked, packed and shipped to customers within minutes. Barrett meets these demands by offering a wide range of integration options tailored to its client's specific needs. Barrett's Expertise in Simplifying IT Integration for Clients Barrett supports everything from traditional, straightforward system integrations like flat files transferred to an SFTP site to more sophisticated solutions such as Electronic Data Interchange (EDI) over AS2 or a value-added network (VAN). However, the real innovation lies in Barrett’s robust stack of REST APIs. These APIs allow clients to programmatically interface with various systems within Barrett, including the Warehouse Management System (WMS) layer, providing a future-ready technology solution. For tech-savvy clients, this means the possibility of integrating with Barrett’s systems even before operations go live, ensuring a smooth transition and continuous operation. Additionally, Barrett offers quick and effective plug-in solutions for popular platforms like Shopify, WooCommerce, and QuickBooks Online through its partnership with Pipe17. This enables rapid integration, making connecting with Barrett's systems easier for clients using these platforms. For brands using NetSuite, Barrett's long-standing Oracle SDN partner expertise provides a best-in-class interface. Whether a client uses TrueCommerce, SPS Commerce, or another EDI provider, Barrett can integrate seamlessly, making NetSuite the central hub of operations. This flexibility extends to environments with pre-existing customizations, allowing clients to benefit from Barrett’s solutions without disrupting their current setups. How Barrett Prioritizes Security and Integrity in a Digital Landscape As the digital landscape becomes increasingly complex, the security and integrity of client data have never been more critical. Barrett Distribution takes this responsibility seriously by adhering to the NIST Cybersecurity Framework, which guides its technology choices and security posture. Barrett has established long-term partnerships with industry-leading cybersecurity providers including Okta, CrowdStrike, Arctic Wolf, and GuidePoint Security. These relationships ensure that Barrett remains at the forefront of IT security, leveraging the best technology to protect client data from a rapidly evolving threat landscape. Investment in IT security is a top priority at Barrett. Unlike some organizations that operate under the principle of "no budget" for IT security, Barrett carefully allocates significant resources to this area. This strategic investment ensures Barrett can provide a secure environment for client operations and data, safeguarding against potential data loss and other cyber threats. How Barrett Stands Out in IT in the 3PL Industry Barrett Distribution's approach to IT infrastructure combines innovation, flexibility, and robust security. For many years, Barrett has been a cloud and SaaS-first company, giving it a significant advantage over its peers. Barrett can deliver tailored innovations quickly and efficiently by maintaining deep partnerships with commercial software providers while developing in-house capabilities. This unique approach allows Barrett to react swiftly to client needs, whether implementing a small yet impactful change or responding to an urgent business opportunity. In contrast to competitors relying solely on off-the-shelf packages, Barrett’s ability to innovate internally ensures that it can provide the right solution at the right time, keeping client operations running smoothly and securely. Conclusion Barrett Distribution is a third-generation 3PL leader in IT integration and security within the 3PL industry. With a comprehensive approach that includes advanced integration options, strong cybersecurity measures, and a commitment to innovation, Barrett ensures its clients can operate seamlessly and securely in today’s digital landscape. Ready to Enhance Your Logistics with Cutting-Edge IT аÄÃÅÁùºÏ²Ê¹ÙÍø? We understand that your business demands more than just logistics—it requires seamless integration, robust security, and innovative technology—partner with us to experience a long-term 3PL partner that aligns with your digital needs. Contact us today to learn how our tailored IT solutions can uplevel your operations and keep you ahead of the competition.
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With the global 3PL market projected to reach $1.3 trillion by 2026 , businesses are under increasing pressure to adapt to evolving customer expectations. Effective communication between your business and your third-party logistics (3PL) provider is more critical than ever for maintaining operational efficiency. At Barrett Distribution , we’ve developed 3PL integration solutions that enhance connectivity with Transportation Management Systems (TMS), Warehouse Management Systems (WMS) and e-commerce fulfillment services , ensuring your operations stay ahead in this progressive market. Traditional Integrations: SFTP and EDI Many of our clients rely on traditional integration methods, and we are fully equipped to support these needs. Whether transferring flat files to an SFTP site or using Electronic Data Interchange (EDI) over AS2 or a Value-Added Network (VAN), our infrastructure and experience ensure reliable data exchange. These methods are ideal for clients who prefer or require a conventional approach. Future-Ready аÄÃÅÁùºÏ²Ê¹ÙÍø: REST APIs However, the future of logistics integration lies in advanced technology, and Barrett is at the forefront. We have developed and maintained a comprehensive suite of REST APIs that allow clients to programmatically interface with various systems within our operations, including the Warehouse Management System (WMS). This API-based approach offers flexibility and customization, enabling clients to integrate quickly and efficiently, even before their operations go live. It’s perfect for tech-savvy clients looking to streamline processes and gain real-time access to logistics data. Quick Integration with E-Commerce Platforms For clients using popular e-commerce platforms like Shopify, WooCommerce or QuickBooks Online, we offer a robust integration layer through our partnership with Pipe17. This collaboration allows us to connect clients to our systems swiftly and securely, ensuring that their operations can hit the ground running without lengthy setup times. This solution is especially beneficial for businesses looking to maintain a seamless connection between their online stores and our 3PL services. NetSuite Integration One of our standout offerings is our integration with NetSuite, where Barrett is an Oracle SuiteCloud Developer Network (SDN) partner. Our long-standing relationship with NetSuite allows us to provide a best-in-class interface for clients who rely on this powerful ERP system. Our Barrett Suite app enables real-time data synchronization and operational truth within the client’s NetSuite environment. This setup is highly compatible with various EDI providers like TrueCommerce, SPS Commerce and EZCom Lingo, allowing for a central operations hub within NetSuite. Our solutions are designed to integrate efficiently even for clients with pre-existing customizations in their NetSuite environments, such as those using tools like Soligo. We offer partial implementations of our connector, ensuring that even the most customized setups can benefit from our expertise and integration capabilities. Conclusion At Barrett, our approach to IT integration is both comprehensive and flexible, designed to meet the diverse needs of our clients. Whether you’re leveraging traditional methods or looking to tap into the future of logistics technology, we have the solutions to ensure your operations are cohesive and efficient. Our commitment to staying at the forefront of technology means our clients can always rely on Barrett to deliver the services they need today and the innovations they’ll need tomorrow. Are you r eady to take your logistics operations to the next le vel? Contact us today to learn more!
