Bekins Expands Rapidly Growing HomeDirectUSA Home Delivery Company

Furniture World Magazine

The Bekins Company, a premier transportation and distribution services company, announced that it will expand HomeDirectUSA, its national home delivery service. The move was made following four years of double-digit growth by HomeDirectUSA and is designed to more effectively market large consumer product delivery services to manufacturers, traditional retailers, direct marketers and Internet-based retailers. As part of the expansion, HomeDirectUSA has added a significant new technology capability to its service called Directware, a proprietary communications and order fulfillment system created expressly to enhance the experience of HomeDirectUSA’s customers and consumers. Directware provides retailers with maximum control over the distribution process and enables them to manage their inventory at each point in the distribution process. This technology service includes an online inventory management system, delivery tracking, daily reports, customer email notification at any significant event within the lifetime of a shipment, interactive shipment alerts identifying potential delays before the delays occur and online delivery scheduling. Bekins established HomeDirectUSA in 1999 in response to changes in the retail industry, including: the increasing number of manufacturers selling directly to consumers, the rise of the Internet, the demand of retailers to expand their geographic reach, and disintermediation (retailers looking to cut out links in their supply chain and moving products directly from the manufacturer to consumer). Another significant factor in HomeDirectUSA’s growth is that it reaches every zip code in the United States, allowing its customers to expand into new geographic markets. HomeDirectUSA specializes in nationwide home delivery of large consumer products – furniture, electronics, fitness equipment, appliances and other high-end items that require special handling or time-sensitive delivery. Its services assist manufacturers, retailers and e-tailers in improving customer satisfaction, exploring new distribution channels and reaching new consumers. “In a remarkably short time, HomeDirectUSA has helped to forge an entirely new segment of our industry, based on the growing trend of disintermediation, or the removal of certain links from the supply chain,” said Larry Marzullo, chief executive officer of The Bekins Company. “This, in turn, has created tremendous new business opportunities for manufacturers and retailers,” Mr. Marzullo added. “HomeDirectUSA has enabled manufacturers to more effectively sell directly to consumers, propelled traditionally regional retailers into the nationwide marketplace and provided critical distribution and delivery services to Internet-based companies.” Mr. Marzullo added that by addressing the needs of the changing marketplace, HomeDirectUSA has successfully achieved substantial growth – more than 30 percent each of the past three years, and is up over 50 percent in 2003. Through this organic growth and recent acquisitions, HomeDirectUSA currently makes more than 300,000 deliveries annually. The company currently has more than 200 contracts with leading manufacturers and retailers, including Bush Industries, QVC, Neiman-Marcus, L.L. Bean, Restoration Hardware, Staples, BestBuy.com, Costco, Walmart.com, Serta, Simmons, Z Gallerie, Expo Design, and Buy.com. “Based on growing interest in HomeDirectUSA services by leading retailers and manufacturers, as well as opportunities for additional acquisitions, the future looks very bright at HomeDirectUSA,” Brian Gallagher, the General Manager of HomeDirectUSA since its inception in 1999, said. “Within the first half of 2003 we expect to introduce additional new service offerings and geographically expand our operations.” The newly expanded HomeDirectUSA will maintain its headquarters with The Bekins Company in Hillside, Ill. Other than Brian Gallagher, its management team includes Peter Riddell, who joined HomeDirectUSA in 2001, will continue to serve as the company’s vice president of sales, and Michael Dieter, who joined HomeDirectUSA in 2002, will continue to serve as the company’s CTO. About HomeDirectUSA HomeDirectUSA is the country’s premier provider of advanced delivery services for large consumer durables. The company operates from 61 distribution centers, 4 crossdock operations and a fleet of more than 2,300 air-ride tractor-trailers and straight trucks. Headquartered in Hillside, Ill. HomeDirectUSA, through its parent The Bekins Company, is an ISO-9002 registered company. More information on HomeDirectUSA can be found on the company website: http://www.homedirectusa.com. About The Bekins Company The Bekins Company, Hillside, IL included Bekins Worldwide Solutions, Inc. and Bekins Van Lines, LLC. Bekins Van Lines, founded in 1891, provides quality household goods relocation services for corporate accounts and private relocations customers. Bekins Worldwide Solutions is one of the largest North American integrated networks that provides logistics solutions and home delivery services to consumers, manufacturers, distributors and retailers of electronics products and large consumer durables. Both Bekins Worldwide Solutions, Inc. and Bekins Van Lines, LLC are ISO-9002 registered companies. More information on Bekins can be found on the Company website: http://www.bekins.com/.