Flexsteel announces 4 week lead time.
DUBUQUE, Iowa – By investing in production capacity and inventory build while reducing backlog, Flexsteel Inds. says it achieved a lead time of four weeks for its custom upholstery orders.
“It is the lowest average lead time across the board in my 25 years with the company,” said Tim Newlin, vice president of product at Flexsteel.
The company credits a number of factors that are contributing to better lead times including a distribution center in Greencastle, Pa., that opened earlier this year that serves the Northeast markets for quicker delivery.
An early leader on the move to diversify its supply chain, Flexsteel opened operations in Juarez, Mexico, in 2006. Flexsteel’s properties currently include three facilities in close proximity, facilitating the growth of all product categories and a reduction of lead times, according to the company.
To focus sales on customized products, Flexsteel invested in digital capabilities including enabling a user to cover his potential purchase in a fabric and then using a mobile device to visualize the product in his home. The company said buyer’s remorse is reduced, and the feature has become one of the most popular digital tools on the Flexsteel website.
Flexsteel sees its special-order business as a key component in today’s retail climate as these products flow in and out as opposed to stocked products that require costly warehousing space.
The company also reported growth in all product categories highlighting its South Haven collection. The collection of fabrics across hundreds of Flexsteel products uses simplified pricing. The company added new and existing products to the collection including motion groups, recliners, stationary groups, accent chairs, poufs and new fabrics launched the High Point Market in April.
“Our lead times on domestically made Flexsteel products continue to improve as we invest in our growth and ramp up our North American manufacturing capacity,” said David Crimmins, vice president of sales. “This led us to double down on our already popular South Haven program, and our retailers responded immediately with new placements, recovers of existing frames and by adding new categories. It was great to see the excitement over these changes.”
In addition, to better serve its retail customers, Flexsteel engaged its retailers with in-person, phone, virtual and written engagements to determine what was working and what needed improvement.
“In recent months, our retailers participated in Voice of the Customer feedback,” said Crimmins. “In total, we completed more than 600 live interviews and 500 surveys. Throughout this process, we have implemented the ideas we collected for improvement where attainable for our retail partners.”
As a result, the company updated its customer portal including new order status communication and visibility, track and trace capabilities, and price list updates to improve retailers and consumers’ experience.
