Our client is a high-end furniture retailer with stores across the United States. The company’s business model focuses on designing its own products, finding the best manufacturers and delivering direct to its discerning customers.
An increasing number of retailer options in the market, including online direct-to-customer furniture companies, has put pressure on leadership to drive down costs while maintaining a preeminent delivery experience. Maine Pointe was brought in to focus mainly on SIOP, logistics and warehouse operations. Our goal was to optimize our client’s distribution footprint and reduce the overall cost-to-serve to enable future growth.
From the outset, the client made it clear any reduction in costs must not be to the detriment of the overall customer experience. Additionally, their existing relationship with trucking and final-mile delivery service providers must be handled with extreme sensitivity.
Maine Pointe’s analysis revealed a quality-focused, design-driven business with high margins across its product lines, which it wanted to maintain. The business placed great importance on providing an exceptional experience to its customers who expect a very high level of product quality and service.
Sales and inventory operations planning (SIOP) was tactically focused, warehouses were near to capacity, there was no directed putaway and no visibility to indirect labor activity. Final mile delivery was undertaken by highly valued incumbents with a focus on service rather than pricing. All final mile providers were using their own trucks and personnel branded with the 3PL name. Contracts were often driven by the vendors and there was limited cross-functional communication between our client’s leadership team, resulting in siloed decision making. Maine Pointe implemented a multifaceted Total Value Optimization (TVO)™ approach with strategic focus on warehousing, operations and logistics, followed by enablement using SIOP and data analytics tools.
The savings delivered, combined with improved visibility across the supply chain, will enable growth while maintaining the brand’s product margins and reputation for quality.
Maine Pointe’s subject matter and industry specialists helped the client gain visibility, reduce costs and enhance customer service.