Havertys' Dramatic Change In Distribution Made Possible By Use Of Proven Delivery System - November 2002

Clarence Smith, President and Chief Operating Officer of the Atlanta based Havertys Furniture; recently spoke of a new partnership between Havertys and a specialty truck equipment manufacturer from New Jersey. "Our partnership means a great deal to our future success." Because of this partnership, Havertys has completely changed the way they warehouse and deliver furniture. The "Warehouse on Wheels" system, by Demountable Concepts, has made this change possible.

The evolution in Havertys' operation comes after a yearlong test run of the "Warehouse On Wheels" system in the company's northern Florida market. By consolidating multiple, regional warehouses into their new centralized distribution center in Braselton, GA and implementing the "Warehouse on Wheels" system, Havertys is now able to service home delivery markets as far as 250 miles away on a daily basis.

While the benefits of a centralized distribution center are quite obvious, the issue of servicing customers far from the distribution center is often a challenge. Long stem-times, inefficient cross-docks or expensive pup-trailer operations are often the choice. These operations, however, significantly impact on the company's overall cost of delivery.

The "Warehouse on Wheels" system in place at Havertys allows them to load straight truck bodies at the distribution center. Product is not touched again until it's delivered to the customer. Two bodies are shuttled at night on a special trailer chassis to the remote markets. The trailer driver swaps the loaded bodies for empties from the previous day's deliveries and returns home. Local delivery drivers mount the loaded bodies, on non-CDL trucks, and begin their delivery routes in the early morning. 

Steve Burdette, VP of Operations, details the radical change in their new operation. "The first phase of the Havertys' conversion to demountables will result in closing 22 local warehouses. All of the markets will be served from our Eastern Distribution Center in Braselton, GA and Home Delivery Center in Colonial Heights, VA." Burdette states that Havertys is servicing a home delivery area for approximately 50 stores from these two facilities. 

Burdette also points out the labor savings associated with the demountable system, "We can use non-CDL drivers for all our home deliveries. We can improve the quality of our loads and increase the number of stops per truck by 30-40% by using demountables." 

Havertys will also turn to the system as it enters new markets. According to Burdette, "Demountables will allow Havertys to open more stores at a faster pace and at significantly lower costs." The new store property and several demountable vehicles is all that will be required. The expense for local warehousing has been eliminated.

Facing the challenges of profitably growing their business, Havertys has taken a bold step to ensure a bright future. By reducing their warehouse and distribution costs, increasing driver productivity and setting a blueprint for efficient future growth, Havertys will be miles ahead of the competition. As delivery manager Bobby Rhodes puts it, "the demountable system will take us to the next level as leaders in our industry."