Magnussen Home lowers minimum on container program
Dealers can now order portion of a container load
By Furniture Today Staff -- Furniture Today, January 2, 2008
NEW HAMBURG, Ontario — Magnussen Home Furnishings has reduced the minimum order on its fledgling QuickFlex program from 2,000 cubes to 500.
Magnussen wanted to broaden its quick-shipping, mixed-container program to all dealers, including smaller dealers who don’t order container loads. The new minimums equate to an order of three to four bedroom or dining suites, according to the company.
The company, which has a plant in Vietnam, held a soft opening of the QuickFlex program in May with a limited number of its largest retailers. The company’s Asian distribution center became fully operational in September with a minimum order of one container.
“QuickFlex 500 will enable all of our retail partners to mix containers in the truest sense so they will be able to take advantage of increased turns without the overhead of carrying their own inventory,” said Richard Magnussen, president and CEO. “This is all about extending the profitability of a strong, sophisticated supply-chain management program to all retailers, no matter the size of their operations. It will cut obsolescence-related inventory costs and reduce their costs for doing business.”
Retailers will be able to order from up to 24 bedroom or dining room styles per order at direct-container pricing. Containers are loaded in one day and shipped in seven days, achieving 30-day delivery to the West Coast and 45 days to the East Coast. Because orders are filled from stock at the company’s new humidity-controlled, warehouse and distribution center in Ho Chi Minh City, there are no delays caused by cutting schedules, Magnussen said.
“Dealers will be able to experiment with a greater selection of styles without the high cost of investing in greater inventory,” he said. “They can craft the ideal merchandise mix, focus on products that generate higher returns and reduce overall operating costs by 25%. It also means increased consumer satisfaction because retailers will be able to consistently deliver the furniture to their customers when they say they will do it.”
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