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Serving The Individual
Profile
By Kirsten Srinivasan   
Wednesday, 31 May 2006
smc England Inc. thrives by offering more choices and customization.
Special-order products typically mean long wait times, but England Inc. can deliver these more quickly because it uses just-in-time (JIT) manufacturing.

While other furniture companies are increasingly sourcing components and finished pieces from overseas with limited styles, England Inc. is bucking the trend "of one color with no choice," says Tim Tull, vice president of sales. He says people don't want furniture that all looks and feels the same.

"Ultimately, our customers want choice, and our strategy is focused on delivering that to them," Tull says. "Our unique niche is giving our consumers choice and delivering it quickly.

"We think that, long term, the furniture industry will have to offer consumers more than a selection of one or two colors," he emphasizes. "We offer dealers and consumers the ability to purchase custom-made furniture at very attractive price points."

England Inc. introduces approximately 20 to 24 new styles per year. "The key to our success is that we offer both customers and our dealers an array of options in terms of fabric and model and have the ability to delivery it quickly - typically in as few as 21 days," he says.

Just in Time
Special-order products typically mean long wait times, but England Inc. can deliver these more quickly because it uses just-in-time (JIT) manufacturing, Tull explains. "We are not pre-building," he says. "Our orders are entered into our manufacturing cycle."

He says England Inc.'s JIT manufacturing saves its dealers inventory costs, compared to sourcing finished product globally, which entails buying in containers and warehousing large amounts of goods. "It's a huge advantage to our dealers because they can turn our inventory, and we minimize their inventory turn-around costs," Tull states.

England Inc. also has its own transportation fleet, giving it greater flexibility with scheduling and delivery, he notes. Closer proximity to customers is also an advantage, he says.

The company is located near its customers. England Inc. has a plant in New Tazewell, Tenn., and a satellite facility in Stockton, Calif. A strong percentage of England Inc.'s sales are east of the Mississippi, and the company is also expanding west. Offering shorter delivery times and many choices means the company has to be "very disciplined," Tull says.

Partnering With Suppliers
Good relationships with suppliers are also a key competitive advantage for England Inc. "We work closely with our suppliers and consider them partners," Tull states. "We are important to them and they to us." For example, he says, the industry had a foam shortage last year and was affected by pipeline problems in New Orleans, driving up prices and making it difficult to get components.

"The supply chain was severely hampered," he says. "Many manufacturers were unable to obtain foam supply, and we never missed a beat as far as our production and orders. "We didn't miss any orders due to the foam shortage, and that was due primarily to our partnerships with our suppliers."

Building on a Legacy
England Inc. has a long legacy in the furniture and upholstery business. Dwight England, along with his father and brother, founded the company in 1964.

La-Z-Boy purchased England Inc. in 1994, giving it a boost in resources, but the family influence also remains, Tull notes. Dwight England's son, Rodney England, is the company's president.

The company has grown steadily through the years. Today, England Inc. serves approximately 2,000 dealers, Tull says. The company has approximately 1,575 employees. "We sell to top-100 [companies], as well, but our forte is independent furniture retailers," Tull notes.

In addition, the company has 10 standalone England stores in the Washington, D.C., market, as well as Toledo, Ohio, and the Youngstown, Ohio, area. "We also recently opened in the Texas San Antonio market," he notes. "When we enter a market, our intent is to build critical mass." Tull says. "We don't need to be in every market; rather, we want to grow steadily and control that rate of growth.

"By saturating a market, we can take advantage of various economies of scale." England Inc. also has approximately 160 dedicated in-store galleries called Custom Comfort Centers. In the future, the company plans to grow by about 25 galleries per year, Tull says.

 
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