Klaussner to start less-than-container import program
Sudden Service selection also expanded
Jeff Linville -- Furniture Today, April 9, 2008
AT THE MARKET — Klaussner is expanding its quick-ship case goods service and is establishing a less-than-container program.
Last year, the full-line importer and manufacturer introduced Sudden Service Klaussner-Vietnam, in which case goods ship out of the Vietnam warehouse in two weeks and arrive in 35 days to the West Coast or 49 days to the East Coast.
Many of its usual customers signed up, but the program also brought in new clients. Because of tough business conditions, some big retailers tried the program with just two or three groups that they could flow steadily, said Todd Campbell, national sales manager for case goods.
This market, Klaussner has expanded the line from 10 groups to 14 and also has added five standalone home entertainment packages. Bedroom prices range from $999 to $1,999 retail for bed, dresser/mirror and nightstand, with most in the $1,499 to $1,599 zone — hitting the heart of Klaussner’s customer base, said Darren York, vice president of merchandising.
Starting May 1, Klaussner will further enhance its import service with a “deconsolidation” program. Sudden Service allows retailers to order goods from more than one source factory and combine them in one container, said Campbell, and now it will be possible to do somewhat the reverse.
Containers will flow into one of the three U.S. distribution centers where the product can be broken down into orders as small as 200 cubes for delivery to stores. When the Sudden Service program began, only full containers were shipped — 2,000 to 2,100 cubes.
Now, a store can buy as few as two bedroom groups and still get a 15% discount over standard warehouse pricing, said Campbell. This reduces inventory and the risk of having the wrong goods in stock, while increasing cash flow, the company believes.
Klaussner is able to offer these services because it manages the entire process from start to finish, said York. The company fills the orders, tracks them across the ocean and handles the redistribution in the U.S. York gave credit to Chuck Miller, vice president of supply chain management, for his supervision.
