Demand-Driven Supply Chain in a Start Up

Although TLC is a small company, it had many of the problems faced by larger organizations. The case also reflects a trend in that many companies with which we deal are continually experimenting with alternative approaches to setting inventory levels that are both economical and provide competitive service levels. The case describes the company situation and the proposed solutions. 

TLC began operation in 1999, based on faith in the marketability of its product line. Dr. Patricia Gail Mahoney, who goes by P-Gail, had foimd the furniture lines attractive when outfitting her apartment in Paris. She believed — and her belief has been confirmed by market acceptance — that the furniture would have similar appeal for customers in the western U.S. 

She contracted with two furniture manufacturers for product in two distinct value ranges. Style et Contort, which manufactures its products in France, represents the TLC premium line. Style et Contort products are marketed as antiques of the future, are built to last, and are expensive by most standards. An economy line is produced by AG R, also of France. AG R, however, manufactures in Indonesia, close to mahogany sources and a ready labor supply. Both lines include chairs, mdassiers (two- or three-seat benches). 

The product line is broad, with more that 100 specific items carrying manufacturer stock numbers. Each item can also be finished with multiple ophons. Many products are also upholstered with custom fabrics. TLC can choose to have e wood finish done af fhe factory or by a local (Los Angeles) finisher — a form of postponement described in Chapters 26 and 27. TLC preferred the factory finish for consisfency and lack of hassles in arranging the logistics of moving fhe ifem to the finisher and back — and tracking each item in the process. 

In the U.S., TLC established a showroom at the local furniture mart. Furniture sellers maintained showrooms at the mart where they displayed their goods for wholesale purchase. Here, designers and decorators bring their clients for furniture selection. TLC invested in an elaborate showcase exhibition of both its product lines. Part-time salespeople staffed the showroom. 

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