by 1.6-million-square-foot bonded warehouse to ship product within 14 days from Vietnam
HO CHI MINH CITY, Vietnam — Ashley Furniture has built a 1.6-million-square-foot bonded warehouse facility here that aims to ship product more quickly to the U.S. market.
The facility is located at the port in Ho Chi Minh and will warehouse a mix of bestsellers in categories including bedroom, dining and both motion and stationary upholstery sourced overseas.
These products will be shipped through the company’s Fast Lane program within 14 days of the time of order. This compares to lead times that can range from 30 days to six months depending on the backlog of product making its way from production to the port.
By having its own facility, Ashley can better manage its lead times and thus avoid typical logjams known to impact shipping times in and outside the furniture industry. The goal is to build and maintain inventory on its bestsellers so it can ship products with both speed and efficiency on a consistent basis.
“It is a bonded facility that is wholly owned and operated by us, Ashley Furniture,” Ashley President and CEO Todd Wanek told Home News Now, noting that the Fast Lane mixing warehouse will carry a narrow, but deep mix of product. “We are going to make sure it is inventoried deep so we can deliver it fast. People are looking for speed with containers.”
He noted that the initiative is timely considering the logistics challenges and costs impacting the industry at large.
“We are having a lot of container issues, whether it is transportation time, lead time or cost, all those things,” he said, noting that container costs typically go up and down regardless. “But at the end of the day, I think it comes down to speed and having inventory that can be replenished fast.”
The company announced the program at the October High Point Market and expects it to begin shipping from the facility in April 2027.
“In April we are going to have it available to ship for the retailers, so everybody’s orders are being focused around that time frame,” he said.
Wanek sees the Fast Lane program as an enhancement to its overall logistics network which includes both overseas and domestic facilities.
“I think that just goes back to the evolution of the industry — containers are part of the industry and we have to look at what assortment makes sense on a container direct basis and that can drive enough velocity so people can fill containers,” he said, adding that customers have to balance this with what they buy out of domestic distribution centers. “And that is where a blended strategy makes the most sense.”
