Magnussen Home To Start Shipping From New Asian Distribution Center
Furniture World Magazine
Magnussen Home Furnishings, Inc. announced that it is now shipping from its new Asian Distribution Center (ADC). Located in Ho Chi Minh City, Vietnam, the program will initially serve a limited number of customers who are committed to a planned forecast of orders, with plans to become fully operational for all container dealers over the next 12 to 18 months.
The ADC program, says the company, cuts the lead time of deliveries by up to 60 days. By enabling participating retailers to order from a broader product assortment in smaller quantities, it will thus increase overall profitability and cash flow. The program allows participants to mix and match products from 13 bedroom and dining room collections in a single container, which will be shipped within seven days. From the date that the order is placed, retailers will receive merchandise within 31 days on the West Coast and 45 days on the East Coast.
“The ADC program is more than just a shipping and distribution facility,” says Richard Magnussen, chief executive officer and president. “It is a concrete demonstration of Magnussen Home’s commitment to lead the industry in innovative thinking about how we can partner with our dealers and reduce their costs for doing business.”
The new Asian Distribution Center is similar to the company’s Riverside Distribution Center and will offer the same proven competitive advantages to dealers. Our customers tell us that with our global volume and our ability to ship mixed products, the added 5.4 percent direct container fee still makes their cost less than they could achieve doing it by themselves,” Magnussen says.
“An order comes in, and the product goes out, “Magnussen says. “Our dealers will be able to order only what they need. By having the goods available in stock, they can increase retail sales, lower their investment in product inventories, and significantly increase the ease and accuracy of forecasting their inventory needs. This consequently will allow our retail customers to allocate their money in the areas that generate higher returns and could reduce their overall operating costs by 25 percent or more.”
Allowing retailers to order a broad selection of furniture in smaller quantities provides the opportunity to try new products with minimal investment. It also will cut obsolescence-related inventory costs.
“A respected retailer once said to me that whoever figures out how to ship case goods once a week from Asia, with unlimited, mixed styles on one container, owns the keys to the kingdom,” Magnussen says. “I guess that means Magnussen Home now owns the keys, and we look forward to opening the door to increased profitability for our dealers.”
Magnussen Home Furnishings, Inc. designs, imports, and distributes medium- and upper-medium-priced occasional tables, accent furniture, bedroom, dining room and home entertainment furniture across all style categories for retailers around the world. The company brings more than 20 years of experience with offshore sourcing focused on quality control of state-of-the-art technology, workmanship, finishing and timely delivery.
Magnussen Home has permanent showrooms in High Point, Toronto and Las Vegas with a state-of-the-art warehouse and distribution center in Riverside, Calif. Its U.S. Sales and Marketing Offices are located in High Point, N.C. The Canadian company is headquartered in New Hamburg, Ontario.