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 Ashley Furniture Industries Highlights GMROI Strategy and Manufacturing Innovation
[Dec 12, 2024]



Pictured above: Ashley's Arcadia, WI advanced manufacturing and distribution facility

Ashley Furniture Industries, LLC (Ashley), the largest U.S. home furnishings manufacturer, has centered its business strategy on Gross Margin Return on Investment (GMROI) to support retail partners in optimizing inventory and profitability. By leveraging advanced forecasting, streamlined inventory management, and a robust supply chain, Ashley aims to help retailers achieve higher turn rates and sustainable growth.

With a nearly 80-year history, Ashley has adapted to shifting market conditions by expanding its product offerings, modernizing manufacturing processes, and investing in its workforce. Since 2005, the company has maintained its position as the world¡¯s largest home furnishings manufacturer.

Recent Investments Strengthen Operations

Ashley has invested over $2 billion in its operations to enhance manufacturing and supply chain reliability. These investments include:
  • Manufacturing: The integration of nearly 500 robots since 2017, state-of-the-art facilities, and expansions in Spanaway, Washington, and Chippewa Falls, Wisconsin.
  • Mississippi Operations: An $80 million expansion to support growth in mattress and upholstery production.
    Product Portfolio: The March 2024 acquisition of Resident Home, which broadened Ashley¡¯s offerings across 20 product categories.
  • Ashley¡¯s manufacturing network includes the largest casegoods facility in Arcadia, Wisconsin, the largest mattress manufacturing plant in Saltillo, Mississippi, and the largest upholstery facility in Ecru, Mississippi.

Manufacturing: The integration of nearly 500 robots since 2017, state-of-the-art facilities, and expansions in Spanaway, Washington, and Chippewa Falls, Wisconsin.
Mississippi Operations: An $80 million expansion to support growth in mattress and upholstery production.
Product Portfolio: The March 2024 acquisition of Resident Home, which broadened Ashley¡¯s offerings across 20 product categories.



Ashley¡¯s manufacturing network includes the largest casegoods facility in Arcadia, Wisconsin, the largest mattress manufacturing plant in Saltillo, Mississippi, and the largest upholstery facility in Ecru, Mississippi.

¡°Our extensive domestic production capabilities give us the flexibility to adapt quickly to market changes and maintain reliable supply for our retail partners,¡± said Todd Wanek, President and CEO of Ashley Furniture Industries. ¡°We¡¯re proud to be a U.S. manufacturer, and our free-market system lets us be nimble and competitive.¡±

Advanced Logistics and Supply Chain Capabilities

As a global leader in logistics and distribution, through an affiliated company, Ashley operates one of the most sophisticated supply chain networks in the furniture industry. The company's transportation infrastructure includes the furniture industry¡¯s largest fleet, featuring over 1,500 tractors and 5,000 trailers that deliver to 95% of North America weekly. Advanced logistics management systems optimize route planning, load efficiency and delivery scheduling, while strategically positioned distribution centers ensure rapid response to market demands across multiple continents.

Ashley¡¯s supply chain operations are among the most sophisticated in the furniture industry. The company¡¯s logistics infrastructure includes:

  • A fleet of over 1,500 tractors and 5,000 trailers delivering to 95% of North America weekly.
  • Distribution centers positioned globally to meet market demands efficiently.
  • Advanced logistics management systems for route planning, load efficiency, and scheduling.

This vertically integrated approach ensures quality control while offering competitive pricing and reliable service. ¡°Our infrastructure allows us to serve both domestic and international markets with unprecedented efficiency,¡± added Wanek.
Commitment to Retailers

Ashley¡¯s operational strategy prioritizes dealer success by focusing on innovation, adaptability, and supply chain excellence. Wanek emphasized, ¡°When we invest in our manufacturing and distribution network, we're really investing in our retailers' success.¡±


About Ashley Furniture Industries, LLC
Ashley feels that every person deserves more value for their money. Established in 1945, Ashley is the largest manufacturer of home furnishings in the world and strives to be the most innovative and competitive home furnishings company on the planet. From design through fulfillment, Ashley is committed to delivering the world¡¯s best home furnishing values, selection and service, and earning the loyalty and trust of its customers every day. Visit Ashley online at www.ashleyglobal.com

Source:
furninfo.com


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