الثلاثاء، 9 أغسطس 2011

Renegotiation, creative cutting elevates Elevate - bizjournals:

http://www.illinois-home.com/society-and-culture-personal-pages.html
When Blazona started in 2006, he was designingv children’s furniture. He said he didn’t feel the full effectws of the recession untillast “Right before the election, thingsd basically stopped. And I mean stopped,” he said. “Sale s became nothing. So that was a littlde bit challenging and a littlebit scary, to say the Blazona decided to look for new thinking: “If we could grow in the middle of it, we’xd probably be stronger in the end.” He started designing adultf furniture and looked for areas where he couldr cut costs in manufacturiny and shipping.
Blazona convinced manufacturersz to accept a lower minimum order meaning they were willinb to produce fewer pieces at a time something he said they were willing to do because they had lost businesx inthe recession. Blazonaa also switched factories, saying his first factory, in Thailand, was complacenf about his business, while other factories were more attentivew to customers to attractnew business. “Thde factories overseas were much more eager to fill theie factory space andtheif calendars, so we pushed them to take on some smallere opening orders, which allowed us to grow and add new he said.
“We weren’t reallh able to negotiate on a per-piecde basis and get our cost down, but we were able to get smallefr quantity.” With smaller minimum orders, Blazonaw no longer had to store so much whichsaved costs. Then he foun shippers were willing torenegotiate “There’s less shipping happening in the and shippers are williny to take less to fill their he said. He also saved on shippinhg by moving his warehouseto Miami, where many trucks drop off loadse at the port and don’t have loads to carry He also let his shippinhg company handle the warehousing of his noting that shippers were willing to pretty much give away storage with shippingh contracts.
Blazona also lookerd for ways to ship directly from locall factories so he couldsave “So we decided to add sofae to our line, whicyh we are buying throughy a factory in L.A. We took the same We convinced them to let us orderd ona per-piece quantity. “In that case, we reallty were able to expand and not have to lay out a ton of he said. He expects the lines of furniture he was ableto add, with directr shipping from the L.A. factory and lower order minimumx on factories overseas will turn into a 40 percent to 50 percenyt gain in revenuenext year. Blazona’s advicw to other companies is to beproactivs — find creative ways to do thingws — and to renegotiate.
“It’s kind of a refreshingb time ina sense,” he said. “We’re all learningg new ways of doing business. And it’sd really time to almost embrace this andthink ‘OK, I can survive

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