Episode 6 of NKBA Live’s weekly forum explored how manufacturers, suppliers, dealers and builders keep projects moving forward. By Dianne M. Pogoda
As it’s turning out, the way to keep businesses and projects on track during the COVID-19 pandemic and resulting lockdown boils down to communication.
Even in areas where businesses have been permitted to reopen, albeit with certain restrictions in place, the disruptions to the supply chain, inventories and deliveries have taken a toll on kitchen and bath remodeling projects. But keeping the lines of communication open — from manufacturer to supplier, retailer to designer and ultimately to the consumer — is the way to manage projects and expectations.
Last week on “Brave New Business,” NKBA’s live online forum, host and NKBA CEO Bill Darcy discussed “Keeping Connected: Moving Projects Forward in All Stages of the Process” with Debbie Schaeffer, CEO of Mrs. G, an appliance dealer in New Jersey; Kevin Dexter, President and Chief Operating Officer of Fisher & Paykel North America, part of the Haier/GE family of appliances, and John Petrie, CMKBD, a past NKBA national president and owner of Mother Hubbard’s, a Design/Build firm in Pennsylvania.
“Over the past 15 to 20 years, supply chains have become so very global, that there are no two that are identical,” said Dexter. “Within a company, different products have different supply chains. On the project side, multiple companies servicing a project are coming from unique supply chains, and with regions and markets, where there are different regulations — especially now, with different markets opening at different times — present a challenge.”
Dexter said the way his company is handling it is engaging in “supply-chain triage,” identifying where pain points exist and how to address them, finding and implementing work-arounds in the near-term while still thinking about the long-term of viability of these supply chains. Finally there’s a much greater frequency and cadence with which companies have to discuss the supply chain. What used to be a monthly forecasting meeting thinking three to nine months out, to discuss procuring parts and all the things that go into a finished product, has become almost a daily meeting to update information, the needs of trade partners, and how this affects the whole supply chain. It’s the frequency and collaboration that’s been key to working our way through the current situation.
He added that the company has been ensuring that it is fulfilling needs already in the pipeline, and making sure they have the most essential items in stock, so they’re starting up production focused on those items first.
Schaeffer, whose appliance dealership gets most of its inventory through a buying group, Appliance Dealer Cooperative, said over the past seven weeks, as manufacturers have had to shut down, inventory has dwindled. But the strong digital organization through the buying group allows for real-time inventory, for our associates in our store as well as for her customers.
“We don’t know whether product from overseas will be able to come into this country, or, even if manufacturers are ramped up for production here in the U.S., they might be getting parts from someplace else and they can’t get the parts in, so manufacturing stops,” she said. “What’s really important is communication. Our buying group and vendors have been amazing about keeping us informed on any issues, so we can let our customers know what to expect. Everyone is shopping online, and they want to get the product they have in mind. Our staff has to be able to communicate what’s available.”
Petrie’s teams have been back on jobs in people’s homes since the stay-at-home order in Pennsylvania was lifted on May 1. He said his remodelers have been strictly adhering to CDC protocols to ensure workers and homeowners are safe and healthy. The supply chain in his state was closed on March 23, effectively stopping production, but cabinetry manufacturers have begun to reopen and start producing again.
He said that a particular challenge was dealing with projects in midstream when the stop-work order was implemented. “We applied for an exemption with the governor’s office. — we had to work on behalf of our customers,” he said. “I reached out to my state representatives, who were a huge asset, to help us get back in to [install appliances] to the point where they could be used. Your state reps and senators are there for you, and I have been in closer communication with them more than I ever would have thought in the past four or five weeks.”
As for safety protocols, Schaeffer said anyone from her staff who is able has been working from home, but all in-store workers wear masks, there’s plenty of hand sanitizer around the showroom, and all customers who come into the showroom have to use the sanitizer and must wear a mask. The showroom has reduced hours and shifted workers’ hours to allow for better social distancing.
Petrie said communication has also been critical in staying in touch with clients and prospects, and to relate the precautions they’re taking. For instance, employees are tested for fever and cough, and to be sure they haven’t been in contact with anyone symptomatic before they go into a client’s home, and they ask homeowners to do the same, and the showroom is open by appointment only to allow sanitizing between customer appointments.
Dexter emphasized that communication is also critical internally, within the company. What used to be quarterly catch-up meetings for the whole company have become weekly meetings. “The increased frequency and quality of communication is essential for our folks to stay connected,” he said. “What’s as important — if not more so —as talking about what we know is being honest and transparent about what we don’t know. If you get those things right and you have the employee engagement, it allows you to be nimble and react to different regions across North America and how business comes up or not. It’s important to have the entire organization operating in real time and reacting to the environment as it exists.”
Coming Up This Week
Brave New Business livestreams on Thursdays at 2 pm (Eastern Time) and features thought leaders across all segments of the business in a free online forum. They’ll share best practices, experiences and advice on topics of critical interest to kitchen and bath design, remodeling, manufacturing and distribution, as well as survival tactics for small businesses and independent operators.
The next episode livestreams on Thursday, and will tackle a subject of grave importance to the entire design, building and remodeling industry: The Future of Trade Shows and Events. Joining Darcy will be Brian Pagel, EVP of NKBA’s longtime partner, Emerald Expositions, which produces the association’s Kitchen & Bath Industry Show and over 100 others around the world; Bob Priest-Heck, CEO of Freeman, the general contractor and logistics operator that moves freight and builds the booths, and Mark Tester, Executive Director of the Orange County Convention Center in Orlando, where KBIS is scheduled next Feb. 9-11. They will share some behind-the-scenes planning, precautions, adjustments and contingencies in play to ensure the health, safety and smooth logistics of the largest expo in North America devoted to residential design and construction.
To register for this week’s Brave New Business forum, fill in the form below.
