FOLDING FURNITURE CASE STUDY: CONTACT MANUFACTURING CHALLENGES AND SUCCESS
BACKGROUND
Our client, an established brand of tubular steel folding furniture and step stools, was manufacturing their products at two company owned facilities in North America. Facing increasing pricing pressure and off-shore manufacturing from their competitors, the company’s management gave a mandate to their buying team to establish a lower cost manufacturing base who subsequently began buying from a variety of suppliers in Asia with limited effectiveness and several notable and costly quality issues.
Following a referral from another client, Source International was given the opportunity to quote one item: The all-metal folding chair. Our first order for 50,000 chairs came that same year.
Based on the success of the all-metal folding chair program, our client began placing additional items with Source International including upholstered chairs, folding tables, table and chair sets and step stools. After several years of successful production and delivery, they closed one of their North American factories and we signed a long-term exclusive manufacturing supply agreement assigning Source International to handle all production of their metal folding furniture and step stools.
ACTION PLAN
To service the supply program, Source International put key operating agreements in place that established a network of dedicated manufacturing facilities for the products using world-class machinery and techniques. At the same time, we also put into place a USA based Operations Executive to coordinate new product designs and launches with the Source Engineering Team in China and a full-time, in-factory QA Team to achieve stable quality, value engineering and continuous improvement needed for competitiveness in the marketplace.
RESULTS
Based on the success of the outsourcing and supply management program put in place by Source International, our client consistently gained market share of the folding furniture and step stool business in the major retailers including Wal-Mart, Target, K-Mart, Home Depot, Lowes, Sam’s Club and continues to maintain a large share of the overall market, consistently earning them awards such as Vendor Of The Year and other prestigious awards for superior performance on cost, quality and delivery.
Source International’s dedicated professionals can achieve the same winning results for your products. Contact us today to arrange a no obligation assessment of how we can supply a partnership which adds value to your Asia supply chain.
