Founded in 1954, Town & Country Living is a global home textiles and décor company that designs, sources, manufactures and distributes products for major retailers. The company specializes in branded and private-label products such as table linens, kitchen textiles, rugs, mats, window treatments, pillows, throws and pet beds to global retailers, focusing on functional, stylish home décor for both e-commerce and brick-and-mortar channels.

T&C operated over a dozen warehouses across the U.S. and Canada. Most U.S. locations were concentrated in the Northeast and on the West Coast, composed of a mix of owned and leased facilities, with some self-performing and others outsourced to third-party logistics providers. The operations supported both T&C's B2B wholesale business with big-box retail customers as well as its e-commerce business.

Recognizing inefficiencies in this fragmented distribution network, T&C sought to evaluate the savings, benefits and risks associated with consolidating its warehousing, distribution and fulfillment operations into a smaller number of strategically located facilities. The company needed to answer critical questions about optimal locations, the number of distribution facilities, relative logistics costs, labor markets, available incentives, facility size requirements and real estate availability and cost in target markets.

To objectively evaluate these variables and develop an optimized distribution strategy, Town & Country Living engaged JLL's Supply Chain and Logistics Solutions team to perform a logistics network-modeling analysis, work through the options, and recommend solutions.

JLL assembled an integrated team, including specialists in supply chain network modeling, labor analytics, economic incentives and real estate advisory.  The collaborative approach enabled JLL to deliver a comprehensive network strategy that helped support Town & Country Living’s requirements from initial analysis through facility implementation. The engagement was based on the following structured methodology:

Data collection, operations reviews and network assessment. JLL provided Town & Country Living with a data request outlining the information needed for the project. The data analysis and meetings with functional experts across the company allowed the consultants to gain a comprehensive understanding of the company’s business objectives, service requirements, product characteristics, customer locations, inbound and outbound volumes, and challenges facing the distribution operations. The JLL team visited more than a dozen of the existing facilities to gain an understanding of current operations and space usage. This baseline assessment established the foundation for evaluating alternative network configurations.

Network optimization modeling and market analysis. JLL developed a logistics network model and facility-sizing program to analyze 18 potential U.S. markets, evaluating 77 location combinations. The modeling assessed the relative logistics costs — including transportation, facility and labor expenses — associated with various location options. Concurrently, JLL coordinated with specialized teams to analyze labor availability and cost in candidate markets, research building availability and costs in target size ranges, and identify potential economic incentives. This integrated analysis allowed the team to objectively evaluate the cost and service implications of different network configurations. 

Recommendations and implementation support. At the conclusion of the analysis, JLL presented findings and recommendations to Town & Country Living leadership in executive working sessions. The team provided guidance on optimal facility locations, sizing requirements and market-selection strategies. JLL then supported the company through the real estate selection and leasing process, drawing on local brokerage expertise to identify and secure appropriate facilities in the recommended markets.

The analysis culminated in a recommendation for a 620,000 square-foot distribution center in the southeastern U.S., and a 250,000 square-foot facility in the western U.S. to support the company’s wholesale and e-commerce distribution requirements.

JLL recommended conducting concurrent facility searches in Savannah, Richmond and Charleston for the eastern distribution center, and in Las Vegas, Phoenix and Bakersfield for the western facility. The multi-city approach featuring the top three performing markets in each region allowed Town & Country Living to maintain leverage in lease negotiations even in cities with a limited number of facilities that met its requirements. The company successfully leased a facility in Savannah for its eastern distribution center, and is focused on Las Vegas for the not-yet-implemented facility in the West. 

"Town & Country Living engaged JLL to analyze our complex distribution network and identify opportunities to consolidate operations while improving service and reducing costs,” says company chief executive officer Sean Jacobs. “JLL's comprehensive approach, combining supply chain optimization with labor analytics, incentives expertise and real estate execution, provided us with the information and support we needed to confidently make decisions about our distribution strategy."

Research Links:

Town & Country Living: https://www.tncliving.com/

JLL: https://www.jll.com/en-us/