Changes paying off for Palliser Upholstery

Tag : Specialty Fabric

Palliser also expanded its motion offerings from simple three-piecesofa, loveseat and chair combos to more complex multi-featuredesigns, offering as many as 20 SKUs in a single group. Modularsectionals also were added. This effort was evident at the springHigh Point Market with the launch of Great Rooms, a broad offeringof sectionals and sofas with a variety of functions and motionfeatures.
Also unveiled was the Instock inventory program, with more than 150SKUs of the most popular styles and colors available for immediateshipment.
"As retailers seek to reduce their inventory risk and consolidatesuppliers, they respond well to inventory programs that are goodvalues but still offer custom color choices," said John Philips,senior vice president of sales and marketing for PalliserUpholstery.
To round out its custom program, the company introduced an importprogram focused on labor-intensive traditional, premium motion andpromotional product.
Meanwhile, Palliser Upholstery has consolidated its Canadianproduction into two plants in Winnipeg, which also house the headoffice and product development team.
The company also has four facilities in Mexico, including onededicated to supplying cut-and-sew covers to its Canadian plants.The other Mexican facilities serve U.S. retailers, minimizing theimpact of the strong Canadian dollar, which currently is nearly onpar with the U.S. greenback.
"Our choice to expand production in Mexico rather than Asia nearlya decade ago is proving to be increasingly effective," DeFehr said,pointing to an Asian supply chain that he said is long andincreasingly costly. "Mexican production ... is ideally suited toour growing custom-order business with retailers looking for quickdelivery, no inventory and limited associated risks."
Although Palliser Upholstery downsized its Canadian operations, itstill has enough capacity to increase production by up to 40% byhiring more people. Currently, about 2,000 people are employed inupholstery production in North America.
DeFehr said he has been pleased with the restructuring andrepositioning of the ex-Palliser companies, saying they havestrategies "that allow each of them to feel positive about theirfuture."
"The current economy in North America is a challenge for everyproducer and importer," he said. "However, the economy willeventually become more supportive, and at this time the highlyfocused individual companies, plus our real estate portfolio, arepoised to both survive and prosper."