Tempur-Pedic Outsources, Moves Canadian Warehouse Operations
Furniture Today Staff -- Furniture Today, July 9, 2011
LONDON, Ontario - Speciality bedding producer Tempur- Pedic International has decided to outsource its Canadian warehouse operations, and will move the warehouse from its headquarters here to Toronto beginning Sept. 1.
"This will place our products closer to retail demand, hence improving customer service." Rick Anderson, Tempur-Pedic North America
The move will result in the termination of a number of employees, although the company did not disclose how many.
Rick Anderson, president of Tempur-Pedic North America, said the changes are the result of "an exhaustive study" of the company's distribution strategy in relation to its current and potential customers.
"As a result of the study, we have determined that opening distribution facilities closer to our customers will improve service levels both now and in the future," he said in a statement. "This will place our products closer to retail demand, hence improving customer service."
He added that "as our business growth warrants, we will look at future expansion opportunities in other parts of the country."
Anderson said that all the employees whose positions were eliminated were provided with exit packages in excess of the requirements of the Employment Standards Act.
Anderson said retailers served by Tempur Canada shouldn't notice or be affected by the change.
"We have always used a third party distribution network at Tempur Canada," he said. "We are now transiting our warehouse operations to a similar structure. This change will be seamless to our dealer network and we will improve our service levels in the future."
Anderson said the company's Canadian sales, marketing and other administrative functions - which are led by managing director Steve Miller - will continue to be located at its London facility.
"Tempur Canada's customer service support function remains unchanged and will continue to deliver high quality service to our customers," Anderson said.
Lexington, Ky.-based Tempur- Pedic International acquired Tempur Canada in April 2010 for an undisclosed sum. The Canadian operation had sales of approximately $9 million in 2009 but is now part of the parent company's North America operating division.
"Tempur-Pedic believes there is significant growth opportunity for our brand and company in the Canadian market," Anderson said.
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