| Client
Profile:
Airline
Manufacturing Company
Airline Manufacturing Company, located in Columbus, Mississippi,
is a supplier of wood component parts to the furniture manufacturing
industry. Ralph Williamson started the family owned company in 1956.
Mr. Williamson’s daughter Judy Dunaway assumed presidency
of the company when he died in 2000. Annual sales have ranged from
$10 to $15 million during the previous ten years. In 2000 the company
employed 316 people but was fighting competition from overseas and
elsewhere and needed to modernize their facility to remain competitive.
Through implementation of lean manufacturing practices and the purchase
of state-of-the-art wood processing equipment, work-in-process,
finished goods, and raw material were reduced significantly and
the company has stabilized it’s workforce at 160 employees.
The company owns its own truck fleet and delivers components to
customers in North Carolina, Tennessee, and Mississippi.
Situation:
Prior to this project, Mississippi State University’s Industrial
Outreach Service and Forest Products Department assisted in lean
implementation projects, the selection and placement of the new
equipment, and the development of a company web site and inventory
tracking system. Even with these significant improvements the company
was struggling to be profitable against increased raw material costs,
pressure from customers to reduce prices, and low cost Asian imports.
Before 2003, the company had not employed marketing techniques other
than cold calls made by the company sales director who retired in
early 2003. MSU’s IOS provided assistance in developing a
job description and interviews for a new marketing director. However,
the company was unable to find a suitable candidate. In late summer
of 2003 the company president decided to personally tackle the development
of a marketing campaign. The company president asked MSU IOS assistance
on the project.
Solution:
IIt was decided the most cost effective approach would be to (1)
develop a brochure, DVD, and two flyers to be mailed to CEOs of
the top 200 furniture manufacturers in the US and (2) find opportunities
to promote the company in trade or other industry publications.
The two flyers would focus on why the target audience should buy
from US manufacturers. The DVD would contain a plant tour and a
photo tour of typical products. The brochure would provide a short
description of the company and the benefits of doing business with
Airline. Each of the packets would include a box of one-half size
product samples and a letter of introduction from the president
asking for an opportunity to quote on their next parts order.
All of the literature, letterhead and the president’s business
card included new graphics that were consistent with the previously
developed web site. The web site url was included on each piece
of literature and on the DVD. The DVD and literature were all developed
in-house. The market kits were mailed to the target CEOs in the
fall of 2003.
In fall of 2003 MSU IOS contacted a feature writer for one of the
popular furniture and woodworking trade magazines. The writer agreed
that the Airline story would be of interest to the magazine’s
readers. The writer visited the plant in the winter of 2004 and
wrote a very positive article that was printed in the magazine’s
June 2004 issue.
In the spring of 2004 the MSU Forest Products Department included
an article about Airline in its Furniture Highlights. Furniture
Highlights is mailed to 1800 individuals and companies engaged in
furniture manufacturing. MSU IOS and FPD have written a case study
about how Airline implemented lean manufacturing. At this writing
the case study is being edited for publication in the summer of
2004.
Results:
Knowing the low response rate for mailed marketing packages, the
company expected responses from about 2% (four) of the target audience.
Over 25 of the target companies have contacted Airline regarding
potential new business. Of those 25, two have developed into new
customers and three more are expected to become customers as design
details and delivery are worked out.
Additionally, the company has become better recognized in the furniture
industry as a premier supplier of wood component parts. The company
is also receiving inquiries from other than furniture sector companies.
These potential other industry clients would provide Airline with
much needed customer diversification.
"This project would not have been as effective in producing
the results we needed without the help we received from MSU”.
Judy Dunaway
President
Airline Manufacturing Company
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