Tuesday, July 12, 2005

Rowe: Change Can Be Painful!

From FURNITUREToday, Rowe chips away at backlog

Rowe Furniture, Inc. is a leading manufacturer of custom upholstered furniture in the United States. Established in 1946, Rowe Furniture offers a wide range of styling in sofas, sectionals, chairs and ottomans with over six hundred fabric selections.

The bad news: Rowe was operating with a number of proprietary and home-grown computer systems. Their deliveries to retail customers swelled to 8 to 10 weeks from order date. Backlog jumped to $23.5 Million and an inability, developed, to get internally produced frame parts to the right place at the right time for assembly.

The good news: They recently switched to SAP AG Enterprise Resource Planning software designed to make it competitive with overseas production.
They were having a problem with fabrics, but the company has made progress in bunching large batches for more efficient cutting schedules.

The upshot: with the changeover they will be able to provide delivery to retail customers within 10 days. "I feel we've come a long way," Gerald Birnbach, chairman and president of The Rowe Companies said. "We should have most things pretty much under control this quarter. As far as manufacturing the product, selling the product, and delivering the product, we're there

Change can be painful. Here at Landfair Furniture we are proud to carry Rowe. Our clients have experienced the frustration of longer than normal delivery times. We thank you for your patience and are excited to be able to offer short delivery times at the completion of the software changeover.

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