Ashley Furniture’s Todd Wanek: Navigating the Supply Chain Landscape

2021 07 October
12:00 pm Pacific / 3:00 pm Eastern

Ashley Furniture’s Todd Wanek: Navigating the Supply Chain Landscape

Our supply chain continues to be in a state of disruption. From container shortages, lack of freight capacity, and government restrictions to combat the pandemic, what will the rest of 2021 and 2022 look like for our industry and your businesses? Ashley Furniture Industries CEO Todd Wanek will discuss his global insights on the supply chain and other disruptions influencing the home furnishings Industry. As the leader of the world’s largest furniture manufacturing and logistics company, Todd has unmatched insight on the movement of inventory worldwide.

HFA CEO Mark Schumacher and Todd Wanek talk about insightful information to your business, no matter your size.

Takeaways from this webinar:

  • Supply chain will probably worsen in the next 3-4 months, with at least a six-month delay to receive products.
  • Hardest hit category is imported wood products (bedroom, dining room, entertainment centers, etc.). Anything that has a veneer or wood finish is very constrained; upholstery will be a bit better.
  • Biggest challenge is that Vietnam is tightly restricted with factory shutdowns.
  • West coast shipping still has container challenges. LA, Long Beach, Seattle, and Oakland ports have labor problems, with it taking three days to unload a ship when it used to take one day.
  • Container prices are not expected to go down until 2023. It currently costs $10,000 to move a container port to port.
  • US manufacturers have a competitive advantage because of the port challenges, but trucking/rail transportation out of the port is weak because costs and labor are limited.
  • Best approach is to be transparent with your customers and explain the delay and the rising costs and set realistic expectations
  • Price points will change, but as a buyer, don’t take a pause. Relook at your merchandising mix and innovative products.
  • There will be a strong demand for home furnishings continuing for the next 2-3 years.
  • Economists are concerned about inflation, and 2022 will be bullish.
  • With 70% turnover in the workforce, it’s crucial to be competitive with pay and invest in helping employees flourish by offering growth opportunities. You want to be the employer of choice.
  • You need to train your delivery drives as much as your salespeople. Those that deal with the customer need interpersonal skills and look and act professionally.