How American Leather Reinvented the Upholstery Business
Here is a great example of a company using lean to compete in the furniture industry, where most everything else is moving to China (or is already there). For anyone who has ever ordered furniture (custom or otherwise), you know how frustrating it is to wait eight weeks or four months for the item to arrive, when you know it must have taken all of a few hours to build.
American Leather, in Dallas TX, has grown to a $59 million a year business by providing fast response (two weeks) through lean techniques and staying physically close to their customers.
From the article:
No domestic manufacturer can beat the Chinese on price, but no Chinese furniture maker can deliver a sofa in four weeks. “The fact that you're across the ocean is adding a month to your lead time almost by definition,” says Mr. Duncan. Nor do low-cost competitors offer as much choice. Like traditional U.S. operations, Chinese plants run large batches with sizable backlogs. That maximizes economies of scale but adds additional weeks to delivery time. Plus, Chinese manufacturers tend to limit each container load to no more than a couple of models in a couple of different colors, gaining efficiencies by giving up variety.
Seems like a great success story!
What do you think? Scroll down to comment or share your thoughts and the post on social media. Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.