Springs Industries Inc.

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Springs Industries Inc.

Springs Industries Inc. is a $2.2 billion textile company that is

headquartered in Fort Mill, South Carolina. Springs Industries

focuses its efforts into the production of the home furnishings

market, and operates under well-known brand names such as Wamsutta,

Springmaid, Disney, LizAt Home and Bill Blass. Their home furnishings

segment account’s for nearly 82% of the company’s revenue, and remains

one of the leading producers of bedding, bath and other home

furnishing products in the United States (McFarlan, pg. 1, 1997).

In 1995, Springs acquired several additional companies in which they

could facilitate the introduction of new and complementary products

that would provide them with a distinct set of product offerings.

However, integrating these new companies into the existing operating

environment would pose significant challenges. “Presenting one face

the customer” was of the utmost importance to Springs and fusing the

“back-office, administrative, and marketing efforts of its

acquisitions” would present numerous complexities (McFarlan, pg. 1,

1997).

Knowledge Building

The home furnishing market which Springs competes in is extremely

volatile. In the home furnishings market, earnings are directly

related to fast and flexible product development, short production

cycles, and ability to replenish stock supplies quickly. Recently,

Springs industry rival WestPoint Stevens was making waves in the

marketplace from the payoff of their heavy investments the past five

years into technologies that increased their current capacity 12%.

To further stress the need for Springs to re-work their existing

structure, one must first understand that in this industry it is

critical to present a strong product lineup because retailers

increasingly wish to purchase from fewer suppliers. This is evidences

by another competitor of Springs, Pillowtex, in recent times acquired

additional smaller companies which will allow the expansion of their

current offerings, and position them to compete directly with Springs

in the existing home furnishing market (McFarlan, pp. 1-3, 1997).

Wanting to remain competitive and on top of their respective market,

in 1997 Springs Inc. hired up and coming executive Crandall Bowles to

lead them into the new millennium. Bowles top priority was to direct

her efforts on the company’s information systems and determine both

the breadth of expenditures and the pace of innovation necessary in

order to increase profit by quickening the pace of its application of

new technology and sources of information to marketing, customer

service, and inventory management (McFarlan, pp 1-2, 1997).

Springs deals specifically with large retailers, the likes of

Wal-Mart, Kmart and Target. These companies demand that suppliers

manage their existing inventories according to current purchasing

trends, which are identified though the collection of Point of Sale

(POS) data and the use analytical sophisticated Information

Technologies (IT).

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