Royal Décor Furniture

Royal Décor Furniture

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A Report Prepared by:

Jorge CAmpos, Jeremy Foskitt, Sue Gonzalez, Andrew Griner, Aundria Mason, Alice Yuen

MAR6466 Supply Chain Management, Dr. Keebler, 4/19/2017

Contents

Our Company        2

Our Products        2

Our Suppliers        3

Locations        3

Shipments        3

        3

Customer Service        4

Production        4

Distribution and Logistics        4

Profitability        4

Future Growth        5

Conclusion        5

References        6

Our Company

        Since Royal Décor Furniture was founded in 2006, we’ve maintained the same culture. We believe everyone has a right to a well-furnished life. Through innovative actions, we produce furniture that is conducive to restoring, protecting, and enhancing the environment. Our mission is simple – to make furniture shopping easy, pleasant, and informative. We don’t believe in commissions, and our sales associates strive to build relationships with consumers in the pursuit of quality furniture in every style.

        Our beliefs?

1. Everyone has a right to a well-furnished life through quality and sustainable products.
2. Sales associates are partners in the furniture shopping experience, providing relevant and timely information to consumers.
3. Future growth and development will be dictated by a steady belief in building partnerships conducive to environmental sustainability.

        As a regional manufacturer and distributor of quality furniture located in San Diego, CA, we partner with global suppliers that believe in our core values and beliefs. These partnerships and values guide our performance, conduct, and actions. 

Our Products

Royal Décor creates consumer products, a luxury line and a standard line of furniture sets including a bed frame, storage bench, and dresser. There are different color options for each line.

Our luxury line is aimed at a more affluent client, sold in our own stores, and is sold for $4,500 a set. The inspiration was derived from the elegance of Versailles, and as such was designed with a French rococo aesthetic. The wood of the frame is made from black walnut, with an iron support for the mattress and decorative metal detailing that inspires the decadence of the era. Color options include cream, silver, Persian blue, and ruby red.

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• Luxury Line NAME THE LINE – who for, inspiration, style

• Bed frame – materials, look
• Storage bench – materials, look
• Dresser – materials, look
• PICTURES

• Standard Line NAME THE LINE – who for, inspiration, style $1,600 a set

• Bed frame – materials, look
• Storage bench – materials, look
• Dresser – materials, look
• PICTURES

Our Suppliers

Royal Décor Furniture has built and maintained a strong relationship with each of its suppliers. It was imperative to choose suppliers with the same standards and values as Royal décor Furniture to ensure overall success in our supply chain performance. Located in China, BaoSteel Group is Royal Décor Furniture’s supplier for steel and hardware. The steel is for much of our bed framing, hinges, bolts, screws, and other steel accessories. BaoSteel Group makes and coats the steel in China. From there, they are transported by cargo ship to San Diego, CA. The lead time for this supplier is 20 days.  Our supplier for customized wood is Pacific WoodTech Corp. located in Burlington, WA provides Royal décor Furniture with high quality customized wood specific for our unique products. Pacific WoodTech is our primary supplier and represents the biggest portion of our total raw material inventory. Recognizing that the relationship we established with this supplier is crucial to our success, we’ve transitioned from a normal business relationship to an integrated vendor managed inventory network in which we are on consignment. Extensive information sharing was required so that Pacific WoodTech can maintain a high degree of visibility of its goods at our location. Instead  reordering when our supply has been exhausted, the Pacific WoodTech is responsible for replenishing and stocking our inventory at appropriate levels. Also, we do not pay for the inventory until the material is sold to the end user. The benefit to Royal Décor Furniture is that we don’t own this inventory, but are able to draw upon it when needed. This improves our overall inventory cost of ownership by lowering our month to month holding costs. Additional savings include not paying for expedited freight on urgent parts from vendors, and saving a tremendous amount of money on the initial freight costs to get the entire consignment inventory delivered. A large portion of inventory costs are made up of the freight costs to get parts in and out of warehouses. By reducing these costs we’ve successfully reduced a key cost of our inventory. We get our fabrics and decorative accessories from Albatex S.r.l., Ayga Textile and Kozman group from Italy, Turkey and Egypt respectfully. These three companies specialize in custom fabrics designed for our specific uses in bedroom furniture. Some of the uses include headboard padding and covering designs, as well as coverings for our storage benches. Kozman Group provides us with top of the line velvet for our Deluxe line. These three companies ship through Houston, TX port and are then transported to our manufacturing site in San Diego, CA. The lead time is roughly 25 days for our fabric and accessories from the order date.  The reliability of our suppliers is crucial. While a competitive price is also important, we wanted to make sure that low prices don't come with unacceptable compromises on quality or on the level of service we’ll receive. We’ve strived to keep open communication lines with all our suppliers and set clear and definite expectations from the start of our relationships.