Carolinas Expo panel urges focus on servicing customers
By Thomas Russell -- Furniture Today, March 14, 2005
Greensboro, N.C. — Greensboro, N.C.— Manufacturers looking to compete in a global marketplace can succeed by establishing a niche, listening and responding to customers, building efficiency and trimming costs wherever possible.
Those were some key insights from three experts on a panel at the 20th edition of the Carolinas Expo, a trade show for furniture, cabinetry and other woodworking professionals at the Greensboro Coliseum Complex on Feb. 17–18.
Judy Dunaway, president of Airline Mfg. in Columbus, Miss., which has a 275,000-square-foot plant that makes components and frames for the home furnishings business, said the industry has taken a short-term outlook by focusing solely on price.
"We have to stop looking for short-term profitability and start focusing on long-term sustainability," she said.
She suggests looking at what other industries, such as automakers, have done to remain competitive in a global market. Many have succeeded by remaining close to their customer base and creating a more efficient manufacturing process.
Successful companies, she said, focus on such consumer wants and needs as choice, customization, quality and speedy delivery.
Her company responded to customer demands by embarking on a lean manufacturing process in 2001. It took time and energy. Dunaway read a number of books on the subject before implementing changes at Airline.
To do it right, she said, companies must talk about change with employees in a positive manner. The process also involves cleaning up work areas, engaging in cross training, gaining a better handle on inventory, and having management work alongside employees. Most importantly, there has to be commitment from the top.
"Persistence wears down resistance," she said. By sticking with the plan, the company:
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Reduced lumber inventory by 78.4% and finished goods inventory by 60% in the past four years.
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Achieved a 40% increase in dollars shipped per hour of production time, and a 30% increase in available floor space.
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Cut production lead times from four weeks to one week.
Although the process ultimately involved some layoffs, which wasn't easy, the result was ultimately beneficial.
"If we can get our product to the consumer faster, I think we can save this industry," she said.
Panelist Charles Wilson, owner and CEO of Charles Wilson Custom Cabinets in Little Rock, Ark., said he achieved success by serving a focused customer base. His eight-employee shop makes cabinets for about five architects and four or five contractors that design or build high-end homes.
"We market ourselves as the problem solvers and the source solution for all their millwork needs," he said. The company has established itself as one of the higher priced, yet highest quality producers in the area.
The third panelist, Chris Bergelin, CEO of custom furniture manufacturer Robert Bergelin Co. in Morganton, N.C., said the 12-year-old company sells customized furniture to clients seeking quality goods at affordable prices.
Some of its success evolved from mistakes made early on. It shipped goods late in some instances, but cut the price by as much as 50% to retain customers. Today, Bergelin estimates that 40% of the business comes from reorders.
"You really want to focus on the customer," he said. "The customer will tell you what business you need to be in, and you can build a great business with happy customers."
