by Case goods resource is expanding its temperature-controlled Vietnam warehouse, relocating its longtime US facility to the East Coast
HIGH POINT — In order to improve service levels to its customers — including mid-sized and smaller retailers — case goods resource Magnussen Home is undergoing a major transition in its warehouse strategy with an expansion of its Asia distribution center and a relocation of its domestic West Coast operations to the East Coast.
The company said it is expanding its humidity- and temperature-controlled warehouse in the Ho Chi Minh City region of Vietnam, boosting capacity by about 20% to 225,000 square feet.
The facility will continue to house all Magnussen’s bedroom and dining furniture and as much as 70% of its estimated 85 occasional table groups.
The facility, located roughly a half-hour from half the company’s source factories in Vietnam and within an hour to an hour and a half of the remainder, also will house the best-selling bedroom and dining collections and curio cabinets from sister company Pulaski, which the company acquired along with sister case goods resource SLF in mid-December. SLF continues to be shipped container direct from the factories where it is produced.
Product from both Magnussen and Pulaski can ship on mixed containers, allowing dealers to buy a variety of products without having to commit to large quantities of single items. This benefits mid- to smaller-sized dealers that don’t typically buy full containers and that are looking to manage their inventory with smaller product quantities.
“As a retailer, instead of buying a direct container from a single factory — which might have 20 bedroom sets, one group, one color — you can mix brands and you can mix tables with curios and beds,” Magnussen President Doug Townsend told Home News Now. “This allows you to bring in smaller quantities of different things so you can keep your working capital smaller.”
He also said that there is a value proposition for these dealers: While the shipping costs are not as low as buying a full direct container, they are lower in cost than buying out of the domestic warehouse.
“And it lowers your inventory risk because you are buying in smaller amounts,” Townsend said of the mixed container program out of Asia versus buying full containers direct.
The Pulaski product, which is being moved into the facility, will begin shipping in the next two months, Townsend said, noting that in-stock product can be shipped on a mixed container in as little as a week from the time of order. It arrives on the West Coast in about 30 days from that time and to the East Coast in about 45 days.
Magnussen also is moving from the 200,000-square-foot California warehouse it has occupied for more than 20 years to a 327,000-square-foot former Heilig-Meyers warehouse in Orangeburg, South Carolina, which is just over an hour from the Charleston, South Carolina, port.
In addition to being closer to a majority of its customers in the eastern half of the U.S., the facility is less expensive than the California real estate, Townsend noted.
“We will be lowering our costs, which will be good for our customers,” he said.
The facility will hold 100% of the Magnussen line and also will hold best-selling bedroom, dining and curios from Pulaski. The Pulaski product, which is being moved from Martinsville, Virginia, will begin shipping May 1 and the Magnussen product will begin shipping around June 15.
Products that are in stock will be able to ship within 48-72 hours from the time of order, getting product to dealers quickly as the demand arises.
