Home Meridian Opens California Distribution Center

January 20, 2011  by in UnCategorized   

By Home Furnishings Business in Business Strategy on January 21, 2011 Supplier Home Meridian International has opened a 330,000-square-foot distribution hub near Los Angeles.

The facility in Redlands, Calif., will be fully operational by Monday, Jan. 24, and is situated near Pacific ports and at the nexus of interstates 10 and 15. The company said it will reduce transportation costs and shorten delivery times to its customers in large population centers on the West Coast.

€œThe most direct€”and therefore the most efficient€”global model is to move inventory from Asia directly to Los Angeles," said George Revington, president and CEO of Home Meridian International. "Virtually every major non-home furnishings retailer uses this model because it reduces time as well as transportation and handling expenses, and therefore eliminates waste. At a time when our competitors are closing warehouses, we are investing in high velocity inventory and superior logistics. This move makes us more competitive and responsive.€

Lamont Hope, chief operating officer for HMI, said the company imports more than 10,000 containers a year and the need to be close to ports and accessible to its largest customers is crucial.

"We are in the global logistics business," Hope said. "We have evolved from a legacy furniture company to a global design, sourcing and marketing company."

Hope said the proximity to the port will allow the company to be flexible in container flow, as well as give the company a larger outbound distribution carrier pool.

"Weakness in the economy allowed us to negotiate very favorable rates for a brand new facility in an ideal location," he said. "Far more than simply a warehouse, this distribution center will be the hub of our freight negotiations and logistics. In an increasingly global economy, the ability to efficiently track and transport goods is a key differentiator that lowers costs, reduces waste and makes us the preferred provider.€

The company's former warehouse was located in Phoenix, which is where Samuel Lawrence Furniture was founded.

"This new warehouse will save us a significant amount in drayage," said Doug Townsend, chief financial officer. "Further, it will reduce freight costs and delivery times to customers on the west coast by two days."

Townsend said the increased space and improved systems integrated into SAP will improve HMI's efficiency and improved the company's speed to market. "It will also provide us with enough space to create a permanent showroom," Townsend added.

HMI is headquartered in High Point, N.C., and operates distribution centers on both coasts. It is the parent company of Pulaski Furniture, Samuel Lawrence Furniture, Samuel Lawrence Hospitality, Creations baby furniture and Prime Resources International.