Below provides a basic explanation of the current process for selling our bespoke XIV Furniture, breaks down the current benefits & issues, & then describes our new approach moving into 2024.
For countertops, I believe the current approach only needs refinement rather than a full overhaul.
2023 / Current Approach
- George sells a unit
- Isometric drawings are done (requiring back & forth with customer) by George or by subcontractor
- Isometric drawings are passed to Jordan to be redrawn
- Drawings done & works order list created, given to John
- Panels are created, hardware is ordered & given to Dave
- Dave assembles unit
- George delivers the unit
- All elements are in-house, which theoretically should result in better quality assurance.
- By being involved throughout, George can have a better understanding of each process.
- Delays between isometric drawings being complete & redrawn. For instance, in September, one set of isometric drawings were complete at the beginning of the month, but weren’t redrawn until the start of October. This then puts pressure on production to make up for lost time. When changes are needed to the redrawn drawings, these can often take days between being looked at, which often results in full working weeks being lost.
- Panels are often rejected by Dave, & are then required to be redone. Whether this is due to quality issues (scratches, chips or marks) or because of adjustments required due to an issue with the drawing, this causes delays. Not only is this problematic for completion times, but it also results in friction between departments as remaking the panels results in other work being disrupted. For instance, when a gloss white unit had to be remade in the summer disrupting already busy departments.
- Drawings often don’t include information for product creation, resulting in Dave having to create solutions or adapt the design to make it functional. For instance, when the drawer runners weren’t suitable for an SGL unit being made due to their weight capacity, Dave had to adjust the hardware so they would work. Whilst often not a problem, it means only Dave is able to assemble the units, as his knowledge is required to complete the design.
- By being so heavily involved in every part, George is taken away from his other responsibilities.
- Increased pressure on production, & XIV Furniture’s sales are often limited by Nokk’s sales due to production capabilities. For instance, if several reception desks are due to be made or have been ordered, they will often be prioritised.
- Whilst the current approach is theoretically sound, the amalgamation of small issues is resulting in less output than desirable.
- Without considerable changes to processes, we’ll be unable to increase our output for XIV Furniture. Whilst we’ve successfully increased the average order value based on our limited production output (from around £1800+VAT to around £3300+VAT based on October & November), this does result in increased expectations. If our processes aren’t perfect, we won’t be able to meet expectations of quality.
2024 / Future Approach
- George sells a unit
- Isometric drawings are done (requiring back & forth with customer) by George or by subcontractor.
- Isometric drawings are passed to Quayside Cabinets for them to supply a panel list.
- Panels are ordered from Rossmans.
- Rossman panels are taken to Quayside Cabinets who assemble the unit.
- We deliver the unit to customer.
- This drastically decreases pressure on our production team for XIV Furniture projects.
- Amount of units produced can be increased, & if our in-house team are required to create a unit we can ensure additional value is assigned to the project.
- With less involvement from George & a more clear production line, this means more time will be freed for sales & Cubicle projects.
- Reduced profit per project through outsourcing costs.
- Less opportunity for in-house growth due to reliance on outsourcing.
- Less control over production.
- Although XIV Furniture’s current approach has room for increased revenue & profits, for it to grow in the multiples it is too reliant on team members increasing their output exponentially.
- Through outsourcing, we can immediately increase our production capabilities. If the revenue is able to grow by multiples, this could prove a need for further investment into in-house production or simply increasing the amount of production partners XIV Furniture uses.
- Full bathroom design for clients in London, utilising our sanitaryware, brassware & tile selection from RAK Ceramics, & install partners.
- Partnering with more interior designers through contacting directly.
- Etsy products including digital services such as design only offerings