Olinde’s Furniture: Service Skills - American Executive - RedCoat Publishing - American Executive

Olinde’s Furniture: Service Skills

Manufacturing
Written by Liz Jones
Monday, 01 October 2007
Tom Olinde explains how this furniture retailer is refocusing on customer service after operating in crisis mode post-Katrina. In 2005, Hurricane Katrina rocked the Louisiana coast. Once the initial clean-up efforts were underway, retailers became frantic trying to keep up with demand as those affected by the storm attempted to rebuild their lives. Tom Olinde, president of Baton Rouge-based Olinde’s Furniture, recalls establishing a night team to pull, prep, and ship merchandise and recruiting additional drivers and service staff. “Demand was tremendous, and we were plagued by a labor shortage as a result of people leaving the area, so lot of retailers felt like they fell short on service during that period because they were operating in crisis mode,” said Olinde. “We are now refocusing our efforts on service basics. We’ve ramped up our warehouse, customer service, and sales departments, and we are doing better than ever.” Tom Olinde, President Over the past year, Olinde’s Furniture has invested heavily in training its 275 employees, starting with its sales force. So far, all salespeople have undergone phase one of an online training course developed and hosted by Furniture World. The first phase of the training course (about 20 hours) covers the nuts and bolts of furniture construction and styles, while the second phase, which is currently underway, focuses on selling techniques. “It covers everything from how to introduce yourself to customers to closing the sale,” said Olinde. He added that the company is also participating in online motivational/inspirational training developed by motivational speaker Bob “Idea Man” Hooey, and has recently launched Olinde University, an online training program covering topics such as interviewing skills and harassment policies. Olinde’s Furniture also recently filed an application to become a beneficiary of the state of Louisiana’s Incumbent Worker Training program. The program provides funding to companies, enabling them to receive skills training from selected colleges, junior colleges, universities, and various third parties. Employees can brush up on their computer skills, learn the ins and outs of operating a forklift, become safety savvy, or take advantage of certain leadership development opportunities. “It’s a win-win program. Our employees receive additional training, which is typically tied to a pay increase, and the state benefits from having more educated, higher paid citizens,” said Olinde. Sharing best practices To keep business in tip-top shape, Olinde and his brother, Beau, president of B. Olinde & Son, the family’s beer distribution company, have been active members of an Impact Performance Group for the past 10 years. At least one brother meets with a group of other retailers from across the country three times a year to discuss best—and worst—practices. “It’s like having an outside board to bounce ideas off of,” said Olinde. “And because these retailers are not located in our service area, we can open up and share financial information comfortably.” One simple yet dramatic change that resulted from an Impact Performance Group meeting was the elimination of CODs. For years, Olinde’s Furniture accepted CODs, despite repeatedly running into problems. “There is always the potential for theft when you are transporting large sums of money, we were wasting time driving long distances only to find the customer wasn’t prepared to pay, and we never knew if a check was going to clear,” said Olinde. After attending an Impact Performance Group meeting during which several members suggested eliminating CODs, Olinde’s Furniture has done just that. “We thought our customers appreciated the opportunity to pay on delivery, but it turns out they are just as willing to pay prior to receiving the product. It is better for us and for our customers.” Enabling growth Currently, the company has five Olinde’s Furniture stores throughout Baton Rouge, Lafayette, New Roads, and Opelousas. In addition, it owns and operates two Ashley Home Stores under a renewable agreement with Arcadia, Wisc.-based Ashley Furniture. Olinde explained that the company chose to enter an agreement with Ashley Furniture three years ago because it not only offered one of the most innovative furniture lines available, but also because it has a strong supply chain and an uncanny knack for Just-In-Time delivery. “Ashley limits the amount of warehouse space in its stores, instead operating several distribution centers across the country. Its business model is to deliver products in two weeks or less,” he said. This business model is a boon for Olinde’s Furniture, especially given the industry’s notorious long wait times. “In the past, if a store didn’t have a product in stock, customers could wait six to eight weeks for delivery.” With a 50,000-square-foot distribution center at the flagship store in Baton Rouge and a 20,000-square-foot warehouse at its second largest store in Lafayette, Olinde’s Furniture is not in a strong position to grow on its own. “A distribution center is a huge expense. You have the cost of the building, racks, and equipment, as well as insurance, personnel, and the inventory to stock it,” said Olinde. “The Ashley model takes a lot of that expense out of the equation.” Olinde has plans to grow the company over the next few years, and he’s starting with a new Ashley Home Store on the North Shore, which broke ground in September. Two more Ashley Home Stores are in the works. The company is also in the process of converting one Olinde’s Furniture store into an Ashley Home Store, a task that will be accomplished by year’s end. “My intent is to build more Ashley stores to increase our volume and then build a 200,000-square-foot distribution center. Once that is in place, we can strategically grow Olinde’s Furniture,” Olinde concluded.

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