What We Do
Client Results
What We Do
Industries
Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Transportation & LogisticsCommercial Due Diligence for an In-door Furniture Logistics Company



Looxent undertook a Commercial Due Diligence (CDD) project aimed at enhancing the expertise and efficiency of in-door logistics services within the furniture industry. The project focused on analyzing the company’s key logistics strategies and market competitiveness, identifying new market opportunities, and formulating growth strategies. The primary objective was to bolster the company’s competitive edge and establish a sustainable growth foundation in the rapidly expanding online furniture market through nationwide logistics networks and IT-based systems offering customized services to customers.

Market Overview

The furniture industry is undergoing rapid transformation driven by continuous changes in residential trends and the growth of online shopping. Increased demand for home furnishings, the rise of single-person households, and shortened furniture replacement cycles are spearheading new consumer trends. In this evolving landscape, furniture logistics must extend beyond mere delivery to include advanced services such as assembly, installation, and returns management. This shift accelerates the adoption of in-door logistics, a new form of logistics that emphasizes high-quality service at the customer interface.

In-door logistics encompasses the assembly and installation of large items like furniture and appliances, making service quality a critical competitive factor. Unlike traditional door-to-door services, in-door logistics requires specialized installation capabilities and data-driven logistics operations to enhance customer satisfaction and loyalty.

Operational Strengths and Competitive Positioning

During the project, Looxent conducted a thorough analysis of the company’s 12 nationwide logistics centers, evaluating their locations, sizes, inventory management efficiency, delivery speeds, and the integration level of IT-based logistics systems. Key success factors identified included:

  1. Strategic Logistics Network Development

    • The company operates a logistics center network covering 80% of the nation, enabling next-day delivery and offering faster service speeds compared to competitors. By maintaining consistent delivery services even in peripheral regions outside the metropolitan area, the company enhances customer satisfaction.
  2. IT-Driven Operational Efficiency

    • Utilizing Order Management Systems (OMS), Warehouse Management Systems (WMS), and Transportation Management Systems (TMS), the company achieved real-time visibility into logistics operations and data-driven efficiencies. This integration facilitates not only effective inventory management but also personalized services tailored to customer needs.
  3. Competitive Advantage in In-door Logistics

    • To minimize customer inconvenience during the assembly and installation of large or heavy products, the company employs specially trained logistics personnel, significantly enhancing service quality. This approach leads to agile responses to customer requirements and differentiates the company’s services in the market.

Growth Opportunities and Future Strategies

The in-door logistics market is projected to grow at an annual rate exceeding 7% over the next five years, driven by the sustained growth of online furniture sales. Looxent identified several strategic initiatives to capitalize on this growth:

  1. Market Expansion

    • Extend service offerings beyond furniture logistics to high-value products such as appliances and medical devices, thereby increasing market share through diversified service ranges.
  2. Development of SaaS Logistics Systems

    • Develop and offer logistics systems in a Software-as-a-Service (SaaS) model to create collaboration opportunities with small to medium-sized furniture manufacturers and e-commerce companies. This initiative aims to secure additional revenue streams through data-driven services.
  3. Sustainable Logistics Operations

    • Implement eco-friendly logistics practices to reduce carbon emissions and adopt sustainable operational methods, thereby fulfilling Environmental, Social, and Governance (ESG) criteria and meeting growing consumer preferences for sustainability and ethical consumption.

Strategic Recommendations

To solidify market leadership and explore new growth avenues, the following strategies are recommended:

  • Diversified Product Portfolio: Expand the supply chain for refrigerated and frozen products to meet diverse customer demands and optimize cost structures by efficiently managing less preferred product segments.

  • Enhanced Management Systems: Establish robust reporting structures and KPI frameworks to improve the speed and accuracy of executive decision-making, thereby maximizing organizational efficiency.

  • Focused Investment in High-Growth Channels: Given the high growth and stable revenue model of the B2B online channel, prioritize investments in infrastructure and service enhancements to secure long-term competitiveness in this segment.


This project enabled the company to align its strategic direction with evolving market conditions, reinforcing digital innovation and operational responsiveness. By implementing the recommended strategies, the company is poised to achieve sustainable growth and a stable revenue structure, thereby consolidating its leadership position in the home textiles market.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

Contact us     |    Terms of use

© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.