BUSINESS
TO BUSINESS
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Two
Smaller Companies and One Large: Just Filling The Niche |
On Assignment A-1 At Island Futon

CottonBelle partners Deanna Ridenhour and Mary Lou Rath overcome
employees stress and fatigue during crunch times with
a practical and holistic approach--get them a massage. Coming
from a health-care background, I as well as Deanna knew from
the inception of the business 10 years ago that you had to
first take care of employees needs and then the rest
would fall into place, Rath said. The two entrepreneurs
have continued to use that down-to-earth, common sense approach
to motivate their employees. That philosophy is paying off
for the partners, who worked together in the futon industry
for eight years before starting their own business in the
tiny farming community of Belle, Missouri, located in the
Ozarks.
That small-town togetherness permeates CottonBelle, especially
now that the full-time 12 member staff is composed of all
women. The staff also includes part-time and contract employees
as well as six consultants, including some men. Our
part-time staffers and consultants are invaluable in helping
us meet peak production demands as well as provide accounting,
product development and art direction skills, Rath said.
We could not have increased our manufacturing and showroom
space to 7,500 square feet without the help and support of
all our employees and business associates. Ridenhour
and Raths mission of providing well-crafted futons,
covers and pillows at a great value is a goal shared by all
staffers. Just as is their daily sharing of laughter, flexible
schedules to accommodate high production demands and sharing
of information and support.
We work hard to stay ahead of the ever-changing market,
Rath said. According to the American Express Index,
interior decoration has replaced renovation and remodeling
as the number one form of home improvement this year. We can
help retailers meet those decoration needs with beautiful
fabrics that touch all the senses and sensibilities--lush,
rich, soft, comfortable, familiar, cozy, vibrant, clean contemporary,
traditional, soothing, gorgeous and fashionable. With
mainly mothers working for us, we know how important it is
to make shopping easy and enjoyable, Ridenhour says.We
also wanted to make it affordable, which is why we originated
the easy-on-the-budget Easy Cover. It is the ultimate slipcover
that can quickly be slipped off and cleaned. As the partners
head into another year, they will be adding performance
fabrics to their line of faux leather and suede this spring.
They will also be offering a classy boucle,embossed velvet,
and silk line.
To capitalize on growth opportunities in the mainstream furniture
market, CottonBelle has formed an alliance with August Lotz,
a leading futon frame manufacturer from Boyd, Wisconsin. Last
year, the two manufacturers showed their stuff at High Point
International Furniture Markets and Futon Expo. Ridenhour
and Rath continue to show their line as they nurture and motivate
their staff into producing high-quality futons, covers and
pillows while still staying relaxed and focused with those
wonderful massages.
On
Assignment A-1 At Island Futon
Before the sun evaporates the morning dew on the coconut
palm fronds and lush vegetation throughout Indonesia, a 27
year-old international businessman and economist strides toward
a vast woodworking factory on the exotic island of Java. Its
time to start another day.
He is Dan ONeil, the Director of Quality Assurance
for Island Futon Company, and he has an inspection to complete
before catching a late afternoon flight to Kuala Lumpur, when
hell fly over places named Sunggabuwana, Palembang,
then over the Straits of Malacca into Malaysia.
He
is on Island Futon Companys Assignment A-1. His job
is straightforward: to determine that each container filled
with Island Futon furniture meets the stringent expectations
of the American consumer. Despite the locale, this isnt
glamorous work.
A graduate of Columbia Universitys School of Economics
and International Business, Mr. ONeil is a conduit between
two cultures with vastly different histories in business and
consumer attitudes. Dans primary focus is to meet the
companys core goal: We must anticipate and meet
our customers needs, focus on the customer in everything
we do, and offer cost effective, innovative solutions to meet
the needs of our customers.
If Dan does not accept the produced goods, it is discouraging
to the people who work for him, but he has to be firm and
resolute. We will allow no product to leave the factory
that does not meet our high standards for quality, says
Island General Manager Sam Leone.
Because quality assurance is so important, we decided
to put our best man on the job. Dan has been full-time, on-site
for almost three years now, and it has made all the difference,
he said.
We pay our Indonesian employees a relatively comfortable
wage, however the working class in Indonesia doesnt
customarily possess the most basic things that you and I take
for granted, Mike ONeil, Dans brother and
the companys Director of National Sales, said.
Ill give you an example, he said. One
of our workers spent the night sleeping on one of our futonsnot
the mattress, just the frameand said it was one of the
best nights sleep hed had in a long time. Otherwise,
he is sleeping on the floor. Were looking for ways to
improve our Indonesian employees quality of life.
Dan
ONeil enters the workplace and walks briskly to the
production department before heading back to the loading platforms.
Its time to have a serious look at whats coming
off the line before inspecting the container-load waiting
his approval.
The production manager watches intently as Dan inspects the
frames. While the machinery hums and big collectors pull sawdust
from the humid air, Dan rubs his hand over the smooth arm
of what will be sold in the States under his companys
brand name. Very nice work, Yunanto, he murmurs
to the boss. Impressive.
Dan
monitors all aspects of production: the winching of big logs
out of rivers, saw milling, kiln-drying, furniture manufacturing,
packaging, and container loading. He provides the on-site
quality inspection that satisfies Island Futons strict
attention to detail and excellence. It is through our
commitment to continuous improvement of our quality process
that has enabled Island Futon to be the premier provider of
futon frames throughout the United States, Michael ONeil
said.
Ninety percent of the of the goods consumed in the United
States travel on cargo ships at some point in their manufacture.
Looking out over the vast oceans covering the globe, sometimes
it seems to Island Futon staff in White Plains, N.Y. that
most of those containers are packed with Island Futons.
Since the emphasis on the companys 18 Step Quality
Assurance Program and the recently added Tuff-Pak
packaging to promote damage-free deliveries, Islands
business is growing steadily.
An esprit de corps is evident in the faces of New York-based
employees such as Larissa Carlson (accounting), Gabe Ruiz
(data processing), Jocielyn Palad (customer service), Diana
Videla-Schray (order processing), Valerie DeVito (traffic
department) and Val Pinto (accounting).
Island Traffic Manager John Murphy says, With the slow-down
of the Asian economies and the upturn in our business we have
to work twice as hard to obtain enough containers over there
to bring our goods in to our customers. We do it, but it is
more difficult nowadays.
Island Sales Manager Michael ONeil adds: Since
adding the new Quality Control program we need more containers
than at any time in our history.
On the other side of the globe, Dan ONeil sips a cup
of real Java and chats with the managers of the sprawling
factory outside of Surabaja, a city of several million in
one of the worlds most over-populated countries.
He knows the factory workers are pleased that he is happy
with the work being done now, and that tomorrow in Kuala Lumpur,
hell have a similar experience with the employees there.
Its all in a days work, Dan said with
a smile on his way to the airport. Before the sun evaporates
the morning dew on the coconut palm fronds and lush vegetation
throughout Indonesia, a 27 year-old international businessman
and economist strides toward a vast woodworking factory on
the exotic island of Java. Its time to start another
day.
He is Dan ONeil, the Director of Quality Assurance
for Island Futon Company, and he has an inspection to complete
before catching a late afternoon flight to Kuala Lumpur, when
hell fly over places named Sunggabuwana, Palembang,
then over the Straits of Malacca into Malaysia.
He is on Island Futon Companys Assignment A-1. His
job is straightforward: to determine that each container filled
with Island Futon furniture meets the stringent expectations
of the American consumer. Despite the locale, this isnt
glamorous work.
A graduate of Columbia Universitys School of Economics
and International Business, Mr. ONeil is a conduit between
two cultures with vastly different histories in business and
consumer attitudes. Dans primary focus is to meet the
companys core goal: We must anticipate and meet
our customers needs, focus on the customer in everything
we do, and offer cost effective, innovative solutions to meet
the needs of our customers.
If Dan does not accept the produced goods, it is discouraging
to the people who work for him, but he has to be firm and
resolute. We will allow no product to leave the factory
that does not meet our high standards for quality, says
Island General Manager Sam Leone.
Because quality assurance is so important, we decided
to put our best man on the job. Dan has been full-time, on-site
for almost three years now, and it has made all the difference,
he said.
We pay our Indonesian employees a relatively comfortable
wage, however the working class in Indonesia doesnt
customarily possess the most basic things that you and I take
for granted, Mike ONeil, Dans brother and
the companys Director of National Sales, said.
Ill give you an example, he said. One
of our workers spent the night sleeping on one of our futonsnot
the mattress, just the frameand said it was one of the
best nights sleep hed had in a long time. Otherwise,
he is sleeping on the floor. Were looking for ways to
improve our Indonesian employees quality of life.
Dan ONeil enters the workplace and walks briskly to
the production department before heading back to the loading
platforms. Its time to have a serious look at whats
coming off the line before inspecting the container-load waiting
his approval.
The production manager watches intently as Dan inspects the
frames. While the machinery hums and big collectors pull sawdust
from the humid air, Dan rubs his hand over the smooth arm
of what will be sold in the States under his companys
brand name. Very nice work, Yunanto, he murmurs
to the boss. Impressive.
Dan monitors all aspects of production: the winching of big
logs out of rivers, saw milling, kiln-drying, furniture manufacturing,
packaging, and container loading. He provides the on-site
quality inspection that satisfies Island Futons strict
attention to detail and excellence. It is through our
commitment to continuous improvement of our quality process
that has enabled Island Futon to be the premier provider of
futon frames throughout the United States, Michael ONeil
said.
Ninety percent of the of the goods consumed in the United
States travel on cargo ships at some point in their manufacture.
Looking out over the vast oceans covering the globe, sometimes
it seems to Island Futon staff in White Plains, N.Y. that
most of those containers are packed with Island Futons.
Since the emphasis on the companys 18 Step Quality
Assurance Program and the recently added Tuff-Pak
packaging to promote damage-free deliveries, Islands
business is growing steadily.
An esprit de corps is evident in the faces of New York-based
employees such as Larissa Carlson (accounting), Gabe Ruiz
(data processing), Jocielyn Palad (customer service), Diana
Videla-Schray (order processing), Valerie DeVito (traffic
department) and Val Pinto (accounting).
Island Traffic Manager John Murphy says, With the slow-down
of the Asian economies and the upturn in our business we have
to work twice as hard to obtain enough containers over there
to bring our goods in to our customers. We do it, but it is
more difficult nowadays.
Island Sales Manager Michael ONeil adds: Since
adding the new Quality Control program we need more containers
than at any time in our history.
On the other side of the globe, Dan ONeil sips a cup
of real Java and chats with the managers of the sprawling
factory outside of Surabaja, a city of several million in
one of the worlds most over-populated countries.
He knows the factory workers are pleased that he is happy
with the work being done now, and that tomorrow in Kuala Lumpur,
hell have a similar experience with the employees there.
Its all in a days work, Dan said with
a smile on his way to the airport.
Cotton
Works Celebrates 10 Years Of Steady Growth And Customer Satisfaction
For a 10-year-old, Cotton Works Industries, Inc. has grown
up fast, transforming itself from a laid-back supplier of
futons and accessories into a high-tech, service-driven enterprise
that ships its products to the nations top 100 furniture
retailers.
While
Cotton Works has changed its location, narrowed its focus
solely to covers and expanded its marketing reach, the company
has held fast to its founding principle of providing quality
products with excellent service, says CW President Jim Martin.
We started off with about 10 customers, Martin
said. Now, were in about 1,700 different stores.
We originally started out with just futon specialty shops.
As the futon industry changed, we did, too. Now were
in the countrys leading 100 furniture stores and were
doing some exporting overseas.
In 1989, Martin was called in to provide marketing assistance
for a floundering Florida futon company. I did a lot
of research, went on the road for two weeks, visited stores
that sold futons and recognized that it was a good company
that just had shaky management skills.
He ended up purchasing the company, sold its two retail outlets
and pumped money into the manufacturing concern. One of the
key steps in turning the bankrupt company around was to strengthen
relationships with customers, Martin said. We called
all the customers, explained the situation honestly, and said,
But were here now and this is what were
going to do. And we did what we said. Then we did the
same thing with the suppliers.
The strategy paid off. We still have our first customer,
Martin said.
From the beginning, our emphasis was on customer service,
added Lynn Martin, Jims wife and Cotton Works co-owner.
We understand where the retailers are coming from. When
we started off, we spent a lot of hours in the store, dealing
with customers.
She knows first-hand the frustration retailers feel. What
good does it do to sell a $2,000 futon suite but then have
to wait on a $50 cover? It makes you crazy.
The company zeroed in on ways to streamline and enhance operations.
When we started off, we manufactured pine frames, futons
and covers. We offered seven covers, and we only sold to Florida
then, Martin recalled. By 1991, Cotton Works had dropped
production of frames to concentrate on futons and covers.
Two years later, Cotton Works moved to Albany, Georgia, which
offered a central location for distribution to the southeastern
United States.
Meanwhile
the futon industry itself was changing. When we started,
futons were basically viewed as college dorm furniture. The
only kind of frames you could get were unfinished, and the
covers lagged behind other fashion trends by three or four
years, Martin said. And you could only buy futons
in specialty stores.
As futons entered the mainstream marketplace, customers demanded
more quality and selection in frames, futons and covers. So
the industry trend has been to provide products that go more
places and are appealing to more people, Martin said.
That meshed well with our philosophy at Cotton Works.
For instance, we use only first-quality upholstery fabrics.
No seconds. And we have a 10-year warranty to back our products.
Thats a rare claim in this business, he said.
Our goal is to give good value, not to have the cheapest
product.
By 1995, Martin said, Cotton Works recognized its forte was
covers, and began pouring all its resources into that area
of its business. It closed down its futon production in 1996.
Today, Cotton Works offers more than 130 cover fabrics, including
one of the industrys best line of tapestries. The company
monitors trends to ensure it can offer the latest looks as
well as traditional styles, and is presently launching a new
line of leather covers.
Despite other changes, service has remained a top priority
at Cotton Works. The company developed a solid reputation
for its speed at turning around orders. We have a three-day
guarantee, and most orders actually ship within 24 to 48 hours,
Lynn Martin said. You dont have to place a minimum
order with us. And you can fax in your orders to us toll-free
24-hours-a-day, seven-days-a-week.
The dedication to providing premier service actually has
been a controlling factor in the growth of Cotton Works, Martin
said. We have deliberately kept our growth steady and
manageable. We knew some smaller specialty stores were afraid
that our service would go downhill if we started selling to
the top retailers. Well, it hasnt, and it wont.
Ten years after going into business, savvy marketing and
a clear understanding of customers needs are keeping
Cotton Works on track. In many cases we actually act
as the customers warehouse. They dont need to
have a storeroom full of our inventory. By using our swatch
rack, which is very attractive, our customers can have 100
turns a year with minimal inventory. Also, it takes up hardly
any space. So its to our customers advantage to
deal with someone who ships quickly, Martin said.
C otton
Works also puts technology to work. Were using
a completely computerized shipping system, to speed shipments
up and cut costs as well, Martin said. We also
have a web site where we show a few covers in each group and
a contact page where people e-mail us for more information.
Retailers get a sales call and we send consumers to a customers
store in their area. We do a lot of referring.
The company has maintained a full-time presence in High Point
for the past five years. We share a permanent showroom
with Largo at 150 Main Street, Martin said. Largo
is a manufacturer of metal and wood futon frames that ship
in two days. This show relationship has worked very well for
both of us because we share the same company philosophy of
great service and quick shipping.
Martin concluded, From the beginning, we have tried
to be responsive to changes within the industry, advances
in technology and the needs of our customers. But the real
basis of our success at Cotton Works is that we have loyal
customers who share suggestions with us. We appreciate their
trust in us. We dont take any of them for granted. And
with their continued support, Cotton Works expects each birthday
to be bigger and better.
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