Over the past decade, the furniture retail industry has navigated a dynamic landscape, marked by economic uncertainties, changing market conditions, and evolving consumer tastes.
The rise of e-commerce, coupled with growing demand for customizable and modular furniture designs, has compelled many retailers to reevaluate their operational strategies. To stay competitive, businesses are increasingly turning to enterprise resource planning (ERP) systems as a cornerstone for streamlining processes and meeting customer expectations.
A Strategic Transformation
Established in 1940, Brown Furniture in West Lebanon, N.H., has weathered numerous economic cycles and industry shifts over the past eight decades. When Brad Nelson took ownership of the business in 2018, he quickly recognized the need for a modernized approach to business management.
At the time, the company relied on an outdated, industry-specific software system to manage critical functions such as costing, inventory, and product customization (including fabric, finishes, and nailhead options). “The software hadn’t seen an update in over 20 years,” Nelson explained. “It was painfully obsolete and holding us back.”
Determined to modernize, Nelson explored the ERP market and ultimately partnered with Bresatech, a NetSuite Alliance Partner, to implement NetSuite. His familiarity with the platform, combined with its robust capabilities, made it the ideal choice to support both current operations and future growth. Within a year of adopting NetSuite, Brown Furniture has already begun to see significant improvements:
1. Streamlining Product Differentiation with Custom Configurations
Previously, products from manufacturers like La-Z-Boy were all grouped under a single product ID, whether they were made-to-order recliners or custom power-reclining sectionals. This lack of differentiation made it difficult to track variations in product features such as fabric or finish.
To address this, Bresatech implemented a custom solution within NetSuite. Instead of altering the item ID for each variation, a core item is established for each manufacturer. Variations in fabric, finish, or other customizable attributes are recorded as configured options within that core item. This approach allows the company to accurately track and analyze sales trends for each product type, regardless of the specific customization, providing clearer insights into monthly and quarterly performance.
2. Dynamic Pricing and Enhanced Tagging
For a furniture showroom like Brown Furniture, the ability to display accurate, dynamic pricing is crucial. In addition to showing the current sales price, they needed to prominently feature the manufacturer’s suggested retail price (MSRP) on their price tags. To meet this requirement, Bresatech customized NetSuite, enabling the team to effortlessly input new pricing values into a dedicated field. “This feature has been a game changer,” Nelson noted, highlighting its significant impact on streamlining their pricing strategy and improving customer transparency.
3. Streamlined Purchase Order Management
NetSuite has enabled Brown Furniture to efficiently consolidate outstanding purchase orders, allowing the team to review all unplaced orders at a glance. By grouping these into a single bulk order, they can streamline the procurement process and reduce freight costs—a key advantage as transportation expenses continue to rise. This capability not only simplifies vendor interactions but also strengthens cost control in an increasingly challenging logistics landscape.
4. Enhancing Customer Engagement and Boosting Sales
With NetSuite, Brown Furniture has introduced unique stock numbers for every product they receive and sell—a feature their old system lacked. This improvement allows sales teams to track style trends in real-time, providing valuable insights into customer preferences. “We can quickly generate reports, identify the most popular fabrics, and adjust our showroom layout to showcase top-selling items,” Nelson explained. This data-driven approach not only captures customer interest but also enhances their shopping experience, ultimately driving increased sales and brand loyalty.
5. Streamlining Financial Operations with Standardization
One of the key advantages Nelson appreciates about NetSuite is its ability to significantly accelerate the month-end close process, reducing it from a cumbersome 10 days to just three. Additionally, the platform’s standardized financial structure, built on GAAP principles, ensures consistency and accuracy in accounting practices. “Everything is structured and reliable—not a patchwork of ad-hoc adjustments,” Nelson noted. “It’s exactly what I wanted for my business. The system runs smoothly without the need for constant intervention or manual corrections.”
Poised for Growth: The Last Independent Retailer Standing
In a rapidly consolidating market, Brown Furniture stands out as one of the last independent furniture retailers in its region. With a legacy that stretches back over 80 years, the company has not only survived but thrived amidst industry shifts and increasing competition. Now, under the leadership of Brad Nelson, Brown Furniture is charting an ambitious course for the future. Plans are already underway to expand its physical footprint with new store locations, enhancing its reach and customer base.
A critical component of this growth strategy is the modernization of its ecommerce operations. As online shopping continues to dominate, Brown Furniture is doubling down on its digital storefront, aiming to deliver a seamless and engaging customer experience. This shift is more than just a response to market trends—it’s a proactive step toward capturing a broader audience and meeting the expectations of modern consumers.
NetSuite plays a pivotal role in supporting these growth initiatives. By offering a unified platform that integrates inventory management, order processing, customer data, and financial reporting, NetSuite equips Brown Furniture with the tools it needs to scale efficiently. The system’s real-time data insights allow the company to adapt quickly to changing market conditions, optimize inventory across multiple locations, and tailor its online offerings based on customer preferences.
With these capabilities, Brown Furniture is well-positioned to seize new business opportunities while maintaining its commitment to personalized service and quality products. As it embarks on this next chapter, the company is ready to continue its legacy of success, ensuring that its independent spirit thrives for another 80 years and beyond.
