In the furniture industry, wedding furniture orders have always been a “cake” that seems attractive but is also tangled. When many furniture companies face small-batch wedding furniture orders, they often fall into a dilemma – if they accept the orders, the order quantity is small, there are many customization requirements, and the costs in procurement, production, logistics and other links remain high, which seriously compresses the profit margin. They may end up working hard just to earn a “hard-earned money”; if they don’t accept the orders, it’s a pity to watch a large number of scattered customer resources be wasted. After all, in the current context of increasingly fierce market competition, every customer may be a potential opportunity for future development. Is it true that small-batch wedding furniture orders can only become a “chicken rib” for the development of enterprises? Of course not! Today, we will introduce an innovative model – the small-order mixed batch model, which helps you easily activate scattered customer resources and enable small orders to bring considerable profits to the enterprise.
I. Do You Empathize with the “Pain Points” of Small-Batch Wedding Furniture Orders?
Before delving into the small-order mixed batch model, let’s first list the problems that small-batch wedding furniture orders bring to enterprises and see if you have the same troubles.
First of all, high costs. For small-batch orders, enterprises have no scale advantage in raw material procurement and cannot get a low purchase price, leading to an increase in raw material costs. Moreover, small orders are often accompanied by personalized customization needs. For example, due to different wedding themes, customers may have special requirements for the color, style and material of furniture. This requires separate adjustments in the production link, resulting in frequent switching of production lines, reduced production efficiency, and a subsequent increase in labor costs and equipment loss costs.
Secondly, meager profits. Although costs have increased, it is difficult to raise the price accordingly. The customers of small-batch wedding orders are mostly small and medium-sized wedding companies or individual consumers, who are highly sensitive to prices and have strong bargaining power. If enterprises raise the quotation to ensure profits, they are likely to lose customers; if they lower the quotation, the already narrow profit margin will be further reduced, and even losses may occur.
Finally, complex management. There are a large number of scattered small orders with diverse needs. A lot of manpower and energy are required to manage every link, from order connection, design communication, production follow-up to logistics distribution and after-sales service. If there is a problem in any link, it may affect the delivery cycle of the entire order and customer satisfaction, thereby having a negative impact on the enterprise’s reputation.
It is precisely because of these “pain points” that many furniture enterprises are hesitant to take small-batch wedding furniture orders, watching a large number of scattered customer resources be lost and missing out on potential market opportunities.
II. Small-Order Mixed Batch Model: The “Golden Key” to Break the Profit Dilemma of Small Orders
Faced with many problems of small-batch wedding furniture orders, the small-order mixed batch model has emerged as the times require. So, what is the small-order mixed batch model? Simply put, it is to integrate multiple small-batch wedding furniture orders with different needs, and conduct centralized procurement, production and distribution according to the common characteristics of product categories, specifications, materials, etc., so as to realize the scale effect, reduce costs and increase profits.
(I) Centralized Procurement to Reduce Raw Material Costs
One of the core advantages of the small-order mixed batch model is that it can realize centralized procurement. In the past, the procurement volume of raw materials for a single small order was small, so enterprises had no right to speak when negotiating with suppliers and could only passively accept the high purchase price. After adopting the small-order mixed batch model, enterprises integrate the raw material needs of multiple small orders to form a large procurement volume. In this way, enterprises have more room for negotiation when negotiating with suppliers, can obtain a more favorable purchase price, and significantly reduce raw material costs.
For example, a furniture enterprise originally received 10 small-batch wedding furniture orders, and each order required the purchase of 50 meters of fabric in different colors. If purchased separately, each color of fabric could only be bought at the retail price, resulting in high costs. After adopting the small-order mixed batch model, the enterprise integrated the fabric needs of these 10 orders and found that 3 orders required red fabric, 2 orders required pink fabric, and 5 orders required beige fabric, with the total procurement volumes reaching 150 meters, 100 meters and 250 meters respectively. With such a procurement volume, the enterprise negotiated with the supplier and not only got a wholesale price far lower than the retail price, but also obtained the free door-to-door delivery service, further reducing the procurement cost.
(II) Batch Production to Improve Production Efficiency
In the production link, the small-order mixed batch model can also play a great role. After integrating multiple small orders, enterprises can carry out batch production according to the commonalities of products, reduce the number of production line switches, and improve production efficiency. At the same time, batch production can also reduce the labor cost and equipment loss cost per unit product, further compressing the production cost.
Taking the dining tables and chairs commonly used in weddings as an example, different small orders may have slight differences in the size of the dining table and the style of the chairs, but the core production process and flow are basically the same. After adopting the small-order mixed batch model, enterprises can first concentrate on producing a batch of dining table frames of standard size, and then make detailed adjustments according to the needs of different orders, such as replacing the desktop material and installing decorative parts; chairs can be produced in batches according to different styles, and after the production is completed, they can be assembled and packaged according to the order requirements. In this way, not only the waste in the production process is reduced, but also the production cycle is greatly shortened, and the customer’s delivery needs can be met more quickly.
(III) Integrated Logistics to Reduce Distribution Costs
Logistics distribution is also an important reason for the high cost of small-batch wedding furniture orders. A single small order has a small quantity of goods, so it is often necessary to arrange separate logistics distribution, resulting in high logistics costs. After adopting the small-order mixed batch model, enterprises can integrate the goods of multiple small orders with similar or on-the-way destinations and arrange centralized logistics distribution. This not only can reduce the logistics cost per unit of goods, but also improve the efficiency of logistics distribution and reduce the loss of goods during transportation.
For example, a furniture enterprise received 5 small-batch wedding furniture orders from different regions of the same city. If distributed separately, the logistics cost for each order would be 200 yuan, and the total logistics cost would be 1,000 yuan. After adopting the small-order mixed batch model, the enterprise integrated the goods of these 5 orders and arranged a truck for centralized distribution, with the total logistics cost only 500 yuan, which directly reduced the logistics cost by 50%.
(IV) Accurate Connection to Improve Customer Satisfaction
Some people may worry that integrating multiple orders in the small-order mixed batch model will lead to order confusion and affect the satisfaction of customers’ personalized needs. In fact, this is not the case. Under the small-order mixed batch model, enterprises will establish a complete order management system to record and classify the needs of each small order in detail. In each link of procurement, production and distribution, accurate connection will be carried out according to the information in the order management system to ensure that the personalized needs of each customer can be met.
For example, enterprises will assign a unique order number to each small order. During the procurement of raw materials, the raw materials of different orders will be marked and distinguished according to the order number; in the production process, workers will produce according to the production task sheet corresponding to the order number to ensure that the specifications, styles, colors and other aspects of the product meet the customer’s requirements; in the logistics distribution link, the goods will be accurately distributed to the corresponding customers according to the order number, and the whole-process logistics tracking service will be provided to allow customers to know the transportation status of the goods at any time.
Through this accurate connection method, the small-order mixed batch model can not only meet the personalized needs of customers, but also improve the order delivery efficiency and customer satisfaction, and accumulate a good reputation for the enterprise.
III. How to Successfully Implement the Small-Order Mixed Batch Model? Key Steps Are Indispensable
After understanding the advantages of the small-order mixed batch model, many furniture enterprises may be eager to try and introduce this model as soon as possible. However, successfully implementing the small-order mixed batch model cannot be achieved overnight, and the following key steps need to be done well.
(I) Establish a Complete System for Collecting and Analyzing Customer Needs
The core of the small-order mixed batch model is to integrate multiple small orders. To achieve effective integration, it is first necessary to accurately understand the customer’s needs. Therefore, enterprises need to establish a complete system for collecting and analyzing customer needs.
In terms of collecting customer needs, enterprises can carry out through multiple online and offline channels. Online, they can use channels such as the official website, WeChat official account and e-commerce platform to set up customer demand questionnaires and allow customers to fill in the demand information independently; offline, sales personnel can communicate face-to-face with customers to understand in detail the customer’s wedding theme, furniture style, material, quantity, delivery time and other needs.
After collecting customer needs, enterprises need to conduct in-depth analysis of these needs. They can classify and sort out the needs according to product categories (such as dining tables and chairs, sofas, beds, etc.), specifications, materials, colors, delivery time and other dimensions, and find out the common needs and personalized needs among them. For common needs, centralized procurement and production can be carried out; for personalized needs, special solutions need to be formulated to ensure that the customer’s special requirements can be met.
(II) Build an Efficient Order Integration and Management Platform
Order integration and management is the key to the smooth operation of the small-order mixed batch model. Enterprises need to build an efficient order integration and management platform to uniformly manage and integrate multiple small orders.
This platform should have the following functions: first, the order receiving function, which can quickly receive small orders from different channels and automatically record the order information; second, the order analysis function, which can analyze the order information, find out the common needs and personalized needs, and integrate the orders according to the preset rules; third, the production progress tracking function, which can track the production progress of the order in real time, and timely find and solve problems in the production process; fourth, the logistics tracking function, which can connect with the system of logistics enterprises, track the transportation status of goods in real time, and timely feed back the logistics information to customers; fifth, the after-sales service management function, which can record the customer’s after-sales service needs and arrange personnel to handle them in a timely manner to improve customer satisfaction.
By building such an efficient order integration and management platform, enterprises can realize the whole-process visual management of small orders, improve the order processing efficiency and reduce the management cost.
(III) Optimize Supply Chain Management to Ensure Upstream and Downstream Coordination
The smooth operation of the small-order mixed batch model is inseparable from the coordinated cooperation of the upstream and downstream of the supply chain. Therefore, enterprises need to optimize supply chain management, establish long-term and stable cooperative relationships with suppliers, manufacturers, logistics enterprises, etc., and realize upstream and downstream information sharing, resource complementarity and coordinated development.
In terms of cooperation with suppliers, enterprises can sign long-term cooperation agreements with high-quality suppliers and establish strategic cooperative partnerships. By sharing order demand information, suppliers can be allowed to make raw material reserves in advance to ensure the timely supply of raw materials; at the same time, enterprises can discuss with suppliers ways to reduce raw material costs to achieve mutual benefit and win-win results.
In terms of cooperation with manufacturers, enterprises can issue batch production tasks to manufacturers according to the order integration situation, and require manufacturers to produce in strict accordance with the production standards and time nodes. At the same time, a production quality supervision mechanism should be established to inspect the production process regularly to ensure that the product quality meets the requirements.
In terms of cooperation with logistics enterprises, enterprises can sign long-term cooperation agreements with logistics enterprises to obtain more favorable logistics prices and better logistics services. At the same time, they can share logistics information with logistics enterprises to realize the whole-process tracking and monitoring of goods transportation and ensure that the goods can be delivered to customers safely and in a timely manner.
(IV) Strengthen Marketing to Attract More Scattered Customers
The successful operation of the small-order mixed batch model requires a sufficient number of small orders as support. Therefore, enterprises need to strengthen marketing to attract more scattered customers.
In terms of marketing, enterprises can formulate personalized promotion plans for target customer groups such as small and medium-sized wedding companies, wedding photography institutions, hotel and catering enterprises, and individual consumers. For example, for small and medium-sized wedding companies, they can launch “bulk purchase discount packages” to attract them to cooperate for a long time; for individual consumers, they can display the wedding furniture products under the small-order mixed batch model through social media platforms, short video platforms and other channels, highlighting the cost-effectiveness and personalized advantages of the products to attract them to place orders.
At the same time, enterprises can also use the word-of-mouth of old customers for promotion. By providing high-quality products and services to old customers, they can encourage old customers to recommend new customers and give old customers certain rewards, such as discount offers and gift giving. This word-of-mouth promotion method not only has low cost but also has good effect, which can help enterprises quickly accumulate more scattered customer resources.
IV. Successful Case: A Furniture Enterprise Realizes a Comeback with the Help of the Small-Order Mixed Batch Model
To give you a more intuitive understanding of the actual effect of the small-order mixed batch model, let’s introduce a real successful case below.
A furniture enterprise was founded in 2015 and mainly engaged in the production and sales of wedding furniture. In the early stage of its establishment, the enterprise mainly relied on undertaking large-batch wedding furniture orders to survive, and its business was fairly good. However, with the increasingly fierce market competition, it became more and more difficult to obtain large-batch orders, and the enterprise began to face survival pressure. At this time, the enterprise found that there was a large demand for small-batch wedding furniture orders in the market, but due to low profits, complex management and other reasons, many furniture enterprises were unwilling to accept them.
After in-depth research and analysis, the enterprise decided to introduce the small-order mixed batch model and try to activate these scattered customer resources. First of all, the enterprise established a complete system for collecting and analyzing customer needs, collected customer needs through multiple online and offline channels, and classified and sorted out the needs. Secondly, it built an efficient order integration and management platform to realize the whole-process visual management of small orders. Then, it optimized the supply chain management and established long-term and stable cooperative relationships with a number of high-quality suppliers, manufacturers and logistics enterprises. Finally, it strengthened marketing and launched a series of preferential activities for the target customer groups to attract a large number of scattered customers.
By introducing the small-order mixed batch model, the enterprise has achieved remarkable results in just one year. On the one hand, the number of orders of the enterprise has increased significantly, the scattered customer resources have been effectively activated, and the market share has been continuously expanded; on the other hand, through centralized procurement, batch production and integrated logistics, the production cost of the enterprise has been significantly reduced, and the profit margin has been significantly increased. According to statistics, after the enterprise introduced the small-order mixed batch model, the profit margin of small-batch wedding furniture orders increased from 5% to 15%, and the overall sales volume of the enterprise also increased by more than 30%.
Moreover, the enterprise has also established a good brand image by virtue of the advantages of the small-order mixed batch model and won wide praise from customers. More and more small and medium-sized wedding companies and individual consumers choose to cooperate with the enterprise, and the development prospect of the enterprise is very promising.
V. Conclusion: Small Orders Can Also Achieve a Bright Future
In today’s increasingly competitive furniture industry, small-batch wedding furniture orders are no longer a “chicken rib” for the development of enterprises, but a potential “blue ocean market”. As an innovative business model, the small-order mixed batch model provides an effective solution for furniture enterprises to solve the profit dilemma of small-batch orders. Through centralized procurement, batch production, integrated logistics and accurate connection, the small-order mixed batch model can help enterprises reduce costs, increase profits, improve customer satisfaction, activate scattered customer resources and realize the sustainable development of enterprises.
Of course, the implementation of the small-order mixed batch model is not an easy task, and enterprises need to make full preparations in customer demand analysis, order management, supply chain coordination, marketing and other aspects. However, as long as enterprises can strengthen their confidence, actively explore, and constantly optimize the model and process, they will definitely be able to take advantage of the small-order mixed batch model, seize the opportunity in the small-batch wedding furniture market, and realize the leap from “small orders” to “a bright future”.
If you are still troubled by the low profit of small-batch wedding furniture orders, you may wish to try the small-order mixed batch model. I believe it will definitely bring you unexpected surprises!
