SIS futon cover - definitely has their act together.

 

Today SIS Futon Covers operates with the help of about seventy employees from a 35,000 square foot facility in Columbia Heights, MN, just outside Minneapolis. Their system isn't unique for a modern cut and sew shop, but in the world of futon furniture (which had its start in garages and basements across America), SIS definitely has their act together.

When you arrive at the factory the first division of the company you encounter is the custom order department. "Custom orders for futon cover and other products comprise about twenty percent of our total business," said Joe Hammer. This division provides SIS's customers with an excellent resource. Shari also noted that with over 250 different futon fabric selections in the line, at any given time, the custom department can also become a bottle neck when volume is high. "Our philosophy has always been to say yes to our customers, and I'm convinced that that's another reason we are successful. But it can definitely slow things down a bit," she said. Scheduling for the custom cover department as well as regular production is all done by computer. "As orders come in they are processed at the office level by our customer service people. We are then able to check futon cover inventory and develop the time line for production," said Joe. SIS uses a home grown software tool to accomplish scheduling and inventory reports. A daunting task when you consider that the company offers over 8000 SKU's. The process spits out a series of tickets and tags for each custom order which follows the entire process from cutting to sewing to packaging, tagging and shipping. For the regular stock (off the shelf futon covers) goods a more mass production oriented system is in place. Using a computer based report of items sold during a given week as a guide and with a goal of always having three weeks worth of finished goods on the shelf for each item the SIS team provides the production manager with a cutting schedule for the week. The system allows SIS to ship futon covers and pillows in just a few days. "At the end of the production line, when the unit is packaged, Mary enters the item number into the system and the raw material inventory goes down while the finished goods inventory goes up. This allows us to stay on top of our finished and roll stock inventories, and keep the process moving" said Joe.

"When you make the commitment to deliver stock futon covers in three days and custom in two weeks, and never say no, you'd better be ready to have the people and finished goods inventory to back it up," he said. Shari added, "In fact colleagues have told us that this commitment to 'never say no' service has been the single most important factor of our success."

Southwest Futon Cover

Creating SIS futon cover with Innovation

Innovation and originality have always been hallmarks at SIS. "We're convinced that the hand painted futon covers that we developed in the late eighties was a big part of our success and growth," said Shari, who added, "We were the first in the futon industry to bring in a line of exclusive, imported fabrics, and we were also the first to introduce upholstery grade fabrics for futons too." Upholstery grade wovens are now the standard of the industry and their extensive use has helped fuel industry growth as well. Other SIS innovations include the introduction of washable cottons and their recent introduction, at the 1996 Futon EXPO in Providence, of the button futon cover (see HOT COVERS page 34). This latest design offers the retailer an original look and the consumer another great fashion alternative.

Speaking of retail, SIS has been a leading supplier to some of the top futon furniture specialty retailers all across the country. With this experience has come a strategy, though not formally compiled, for retailers, that allows these vendors to sell more high end futon covers at better margins. "We have found that these practices can be employed by almost any retailer," says Hammer, "and sales increases of higher end products usually follow."

• Merchandising - Giving the showroom floor a class look with vignettes and futon accessories allow retailers to get those illusive higher prices.

   

• Back-up Inventory - Having a good supply of the hot selling futon covers on hand allows the consumer to take it home.

   

• Changing It Around - Making daily or weekly cover and room decor changes (especially in the windows) gives walk by's and neighborhood consumers a fresh look that invites a visit.

   

• Dollar Phobia - Many retailers are convinced that they can't sell that $100 or $150 futon cover. Getting over this fear with a "can do" mind set has helped many a retailer change their ways.
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When I began to wind down the interview with Shari and Joe Hammer, they both made a point to express their sincere appreciation for the diligence and hard work of their entire crew, both the office staff and the production teams. With special reference to John Christiansen, Customer Service Manager and Katharine Gotham, Director of Specialty futon Products, who are the company's other key management people (the four bios sidebar includes a bit more info on John and Katharine). "We have always brought a lot of energy to this company," says Shari, "and with people like John and Katherine on the front lines we are confident of a great future. Other key personnel include production manager and futon industry veteran Marcie Forsberg (formerly Brown), plant manager Lance Pearson, credit manager Peggy Pappas, and customer contacts Michele Fyten, Kelly Moses, Helen Wilson and Ele Tobias.

With plans including some product diversity and continued growth, SIS futon cover company is not resting on its past. Early next year the company will expand into another adjacent space of about 15,000 square feet. "In the past our growth has just come. Right now we are planning for growth," said Shari. "In the past we would just expand into some space that was available. As the numbers get bigger we have to plan our moves much more carefully," added Joe. The Hammers also said that as they learn to make better use of their company's capabilities and experience they see nothing ahead but positive things, and I couldn't agree with them more.