FBI's Holliman has solid plan
Ray Allegrezza, Editor in Chief -- Furniture Today, July 4, 2005
From the moment he opened his remarks at Furniture Brands International's Analyst and Investor Conference in New York, it was crystal clear that Chairman and CEO Mickey Holliman was in charge.
He promised the room-ful of analysts, investors, retailers and press that he would be blunt. And blunt he was. Holliman outlined the challenges FBI faces, such as the significant growth in promotionally priced goods sold by companies like Rooms To Go and Ashley, and low-margin competitors like Wal-Mart and Ikea.
Holliman also cited the ongoing challenges from Asian competitors, the internal culture shock as FBI moves from domestic manufacturing to offshore sourcing, the struggles associated with the way individual FBI companies had functioned autonomously in the past, and the difficulty of shedding a manufacturing mindset.
"We describe ourselves as a branded consumer products company," he said. "And we are one. But having said that, we then spend our time worrying about ... all those other things manufacturers worry about. I will confess to you the buck stops here. I have been one of the worst offenders."
However, Holliman balanced those challenges with the opportunities he sees coming from FBI's strategic imperatives, such as differentiating the company's brands and making them more consumer-relevant.
The company, he said, will ensure proper distribution of its branded products through an intelligent focus on both dedicated channels and traditional distribution.
Next, the company will continue to shift sourcing of product to lower-cost options, and also will optimize distribution and warehousing.
Then, FBI plans to leverage its size to minimize costs by consolidating back-office functions, maximizing its purchasing power, and investing its cash flow wisely.
Finally, Holliman said FBI would continue to upgrade the quality of its management team.
In short, he outlined a solid plan, and he has solid people helping him execute it. Stay tuned.
