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Pressures on Core Processes other pages in this Furniture Industry web portrait | stakeholders | history this page core process: manufacturing core process: marketing ebusiness | ecommerce

pressures of the Internet on globalization and imports, consolidation of large companies, CNC (computer-numeric controlled) machines, lean manufacturing...

core processes

manufacturing

marketing

pressures

ebusiness

Islands of information
by Tom Burke
FDM, January 2000

Here is the crux of Bill’s problem. It’s a problem that he shares with many others.

His door making and nesting software, sold and delivered with the equipment, may be terrific. Unfortunately, it represents an island of information. It remains unconnected to office data systems (such as order entry) or the shop floor labeling systems. In the future, he will also probably run into hurdles or even roadblocks when he attempts order tracking, automated shipping documents, EDI, ERP, etc.

Similar to connecting islands in the physical world, isolated islands of information are not insurmountable, just more difficult and more inefficient than is necessary.

Are you ready for e-manufacturing?
by Terry Accord
FDM, February 2001

The PIN business model

Today, most of the larger manufacturing companies virtually teem with electronic gizmos: computers, faxes, servers and phone systems. Yet, if most of us are totally honest, our companies still run on the PIN model. That’s PIN as in Post-It Note. If we took away the sticky pads and “While You Were Out” pads in most offices, communications would grind to a halt. Sure, e-mail has made some inroads, but how many of the thousands of workers in the larger woodworking companies have access to e-mail on a timely basis every workday? For many of them, that little yellow square of paper is still the communication tool of choice.

So while computers have found their way into our machines, our offices and our homes, the day-to-day communications in the supply chain have changed little.

Why we should embrace XML standard, and soon
by Brian Carroll
Furniture Today, November 12, 2001

I can spell the future in just three letters — XML.

What is XML? It’s an emerging Internet technology, the basis for electronic document exchange standards, and a platform-independent coding protocol. In short, it’s the Rosetta stone, the Internet code-breaker that can serve to cut a lot of cost out of our very inefficient furniture supply chain.

It’s time for the industry to embrace extensible markup language. ...

Let’s tear down the departmental fences and knock down the tower of computer Babel. Let’s end the mind-numbing talk about B2B and begin automating our archaic business practices. Let’s join the World Wide Web Consortium, the United Nations’ International Standards Organization, and the 21st century by hardwiring the industry for the future.

FurnishNet's Transaction Management and Parts Management

FurnishNet to Demonstrate Supply Chain Solutions
October 9, 2001

FurnishNet today announced that it will demonstrate its Internet-based solutions for transaction management here during the Fall High Point Market, October 18-25. Retailers and manufacturers will be able to see how purchase orders, acknowledgements, advance ship notices, and invoices are processed using FurnishNet. In addition to live demonstrations in its permanent space on the 12th floor of the International Home Furnishings Center, FurnishNet will arrange on-site meetings with manufacturers in their showrooms.

e-commerce

E-Commerce: Furniture Manufacturers Expect To Quadruple On-Line Sales In The Next 4 Years
by CSIL Milano, December 2001

According to a recent survey by CSIL, on-line furniture sales in general reached more than 500 million dollars in 2000 and represent 1.1% of total on-line sales. This data is relevant if we consider that this is a result of 70% increase as compared to the previous year.

Currently about a quarter of American furniture dealers and a fifth of furniture manufacturers take orders on-line, and this makes up respectively an average 2% and 4% of their business. Both dealers and manufacturers expect to triple and quadruple, respectively, the amount of on-line sales in the next four years.

25% of American furniture manufacturers and 30% of dealers consider that the Internet in one way or another represents a challenge to the traditional distribution chains (the manufacturer can bypass the dealer).

As far as price trends are concerned, however, to date there is no evidence of a reduction in the price of on-line furniture (except of course for the sell-offs in the wake of failed dot coms) but the general opinion of about 70% of operators in the sector is that "Internet selling will lead to more price competition".
Nevertheless, the advantages for the sales outlet should come not so much from the reduction in price as from the series of collateral services the sites can offer, such as real-time information on the state of progress of orders, physical availability of the product and delivery times.

B2B Web sites that make your business more efficient
by Stephanie Steenbergen
FDM, January 2001

Furndex, found at www.furndex.com, is an online centralized marketplace for the furniture, cabinetry and woodworking industries. In addition to streamlining the procurement process between manufacturers and component suppliers, Furndex offers members planning and communication tools intended to optimize supply chain relationships.

Furndex operates on the premise that the furniture and wood products manufacturing industry currently is highly fragmented. Designers, manufacturers, suppliers and procurement people don’t have a common language or method for communication and they need this tool to streamline business processes, open communication channels and save money.

Furndex is focused on offering a worldwide trading platform that supports the industries’ public marketplace needs and the industries’ private marketplace requirements, says Jimmy Redmond, Furndex’s founder and CEO. “ With the technology revolution upon us, the levels of uncertainty within the supply chain in this industry can be dramatically reduced.”

Redmond says old EDI systems had a certain cost associated with getting involved that made it hard for small to medium-sized companies to play. “Now with the advent of the Internet, a customer with a PC and Web browser can have access to the same functionality for a fraction of the cost.”

Redmond’s goal is to help companies to get content or product information online so it can be viewed online. He also is focused on helping companies begin to do their buying and selling on the Internet. This will help lower the cost of procurement and reduce order processing time.

Online sales up in December
Furniture Today, January 25, 2002

Total U.S. spending on online sales increased to $5.7 billion in December from $4.9 billion in November, while online furniture sales declined to $68.216 million from $70.919 million.

Dot-coms: Went there, came back
by Brian Carroll
Furniture Today, February 4, 2002

A number of furniture executives, attracted to the energy and potential of the Internet, left established companies to gamble on dot-coms. Most have returned to the industry, but they are, without exception, glad they tried.

They saw the industry from a different perspective, worked with dynamic thinkers and entrepreneurs, and got a view of the Internet-enabled future.

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