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La-Z-Boy’s success depends on providing the highest value to our customers through competitive price, zero-defect quality, and world-class service. A close, collaborative relationship with our suppliers is essential to delivering maximum value to our customers. This manual has been developed to define La-Z-Boy’s expectations to create a strong, competitive, value-added supply chain.
This Supplier Requirements Manual defines the minimum practices that must be effectively implemented at your facility and applies to all suppliers of parts, material, packaging, machinery, tooling, or services, to any La-Z-Boy Manufacturing Plant or Distribution Center.
La-Z-Boy Incorporated reserves the right to monitor suppliers through both announced and unannounced site visits, and audits by third parties and La-Z-Boy personnel. It is our expectation that all suppliers perform the necessary self-audits to ensure they are in compliance with the policies detailed in this manual. We seek relationships with suppliers that are committed to manufacturing products under fair and safe working conditions and sound environmental practices. If we determine that a supplier does not comply with this policy, we will work with the supplier to develop and implement an appropriate corrective action plan or may, depending on the circumstances, end our relationship with the supplier.
As a requirement for doing business with La-Z-Boy, Inc. and/or its subsidiaries, Suppliers are required to conduct business in compliance with the Code of Conduct detailed in Policy 01SCPOL0001-415 (Supplier Code of Conduct). A copy of this policy may be obtained from a Purchasing representative. To confirm compliance, Suppliers are required to sign the Supplier Code of Conduct on annual basis and may be audited by La-Z-Boy or a 3rd Party auditor at any time.
La-Z-Boy Incorporated (LZB) expects that products supplied to LA-Z-BOY INC. AND/OR ITS SUBSIDIARIES will meet all applicable legal requirements during manufacture, distribution and sale. Supplier products must also meet additional LZB requirements that go beyond compliance in order to reduce the environmental impact of LZB products.
The Supplier is responsible for contacting their suppliers to ensure accurate and complete information is provided to LZB. Documentation and/or test data, including documentation and data from the Supplier’s supply chain, must be kept on file and made available upon request by LZB.
The Supplier is obligated to communicate in writing to LZB any changes, discontinuance, recalls, or non-conformance that could impact the safety, health or environmental performance of a LZB product.
If potential safety, health, environmental or regulatory issues are discovered by LZB or LZB’s customers, which are determined to be the Supplier’s responsibility, the Supplier will be notified. The Supplier must address the concern in writing within 10 business days to all such notifications. For Contract Manufacturers, this includes taking immediate steps to address the issue for any work-in-process.
La-Z-Boy’s detailed Supplier Product Stewardship Requirements are found in Procedure 01SCPOL0002-415 Product Stewardship Requirements and may be obtained from a La-Z-Boy purchasing representative.
La-Z-Boy requires 100% on-time delivery performance from all its suppliers and sub-contractors. It is the responsibility of the supplier to notify the affected La-Z-Boy facility of all possible delivery delays.
La-Z-Boy requires notification of the shipment of suspect material. Suppliers are to notify the Supplier Quality or Materials Management organization at the receiving La-Z-Boy facility of any shipments of suspect material.
Except where otherwise stated in the Purchase Agreement, inbound product shipments to La-Z-Boy Branded Business locations shall comply with the requirements laid out in the La-Z-Boy Branded Routing Guide, which is available on request.
For shipments to England and Casegoods business units, contact the purchasing department for specific requirements.
The appropriate La-Z-Boy personnel must authorize all proposed shipping deviations and/or changes. Where extra charges or costs are incurred that exceed the norm (e.g. existing cartage contracts) the supplier shall track and keep good records of such “premium freight” costs.
La-Z-Boy Incorporated qualifies their product under various Free Trade Programs. As a supplier doing business with La-Z-Boy Incorporated, suppliers are required to provide La-Z-Boy, on an annual basis, with a valid Certificate of Origin for the trade programs that are currently supported using La-Z-Boy’s designated Solicitation Website.
La-Z-Boy has specific Labeling and ASN requirements which can be obtained from your purchasing contact.
La-Z-Boy suppliers must operate within a comprehensive Quality Management System which ensures effective 100% on-time delivery of defect-free product. The Quality Management System must be documented and as a minimum address:
While suppliers are not specifically required to achieve certification to ISO9001:2008, operating within the guidelines of this or similar standards is recommended as a means to meet the Quality System expectations.
Suppliers shall accept Zero-Defects as the Quality Target and continually pursue action plans to reduce internal and external defect PPM to achieve that target.
Suppliers are fully responsible for the quality of their products, and for assuring their products and/or materials function properly as part of a system or assembly. Any product not meeting specification may, at La-Z-Boy’s discretion be returned to the Supplier. All costs associated with the non-conforming product will be borne by the supplier.
La-Z-Boy shall conduct random audits of purchased product. Product may be tested by La-Z-Boy laboratories or by an accredited third party laboratory. In the event that the audited product is found to be out of compliance with specifications, the cost of the testing shall be borne by the supplier.
When nonconforming material is received by a La-Z-Boy location, the location Quality Department shall identify and quarantine all suspect material. The supplier is required to implement containment by quarantining defective material and identifying a clean point for subsequent shipments. The supplier is also required to implement corrective actions to eliminate the root cause of the defect and prevent recurrence.
Suppliers shall be responsible for costs associated with non-conforming material shipped to La-Z-Boy, Inc. facilities.
La-Z-Boy operates in an environment focused on continuous improvement through the application of Lean Manufacturing principles to improve quality, reduce cost and ensure on-time delivery. Suppliers are expected to have active continuous improvement programs to ensure continued competitiveness.
La-Z-Boy Suppliers shall have effective processes to manage the launch of new products. As a minimum these processes shall address:
The purpose of the Production Part Approval Process is to provide evidence that all engineering design specifications and requirements are understood and that the manufacturing process consistently produces product meeting these requirements when run by production personnel on production equipment and tooling at full production rates.
Approval of new parts or parts from new suppliers will follow La-Z-Boy’s Production Part Approval Process. Specific requirements may vary by part, commodity and business unit, but approval generally requires completion of:
Suppliers, sub-suppliers and sub-contractors shall make no changes to a product (e.g. material, component, subassembly, etc.) or the process used to produce a product without written approval by La-Z-Boy. This includes changes to sub-suppliers or Process Control Plans.
Changes to product or process may require re-submission of appropriate product approval samples and documentation (PPAP).
In order to promote strong, mutually beneficial relationships with suppliers, all new suppliers must first participate in an approval process to help determine if the supplier has the technical, manufacturing, and leadership culture to sustain a long-term relationship with La-Z-Boy.
Prior to being selected to provide product to La-Z-Boy, all suppliers must be approved. The Supplier Approval Process requires:
Receiving approval allows the La-Z-Boy purchasing organizations to source from the supplier if other factors (price, delivery, quality etc.) meet expectations.
In order to be set up for transactions in the La-Z-Boy system the following information and capabilities may be required:
A Purchase Order must be in place prior to shipment of any production material or parts. Contact your purchasing contact for a copy of the standard Purchase Order Terms and Conditions.
To help drive continuous improvement, and to provide information to support the sourcing process, core suppliers are provided a Supplier Scorecard on a quarterly basis. The scorecard is used as part of the sourcing decision process as well as the primary datum for awarding Supplier Excellence Awards at the end of each fiscal year.
Suppliers are scored in five (5) categories:
Supplier Awards will be presented annually to recognize and award members of the Supply Chain for achievement in Quality, Cost, Delivery, Customer Service, and Innovation. The Suppliers will be recognized during the Annual Supplier Summit.
La-Z-Boy is a Leader in new style and cover Introductions at the High Point North Carolina Furniture Markets held every April and October. La-Z-Boy has a very precise Market Launch Process that Cover Suppliers must be able and willing to support. The market development process highlights are as follows:
The La-Z-Boy Merchandising Department reviews new Textile and Leather designs in November for the April High Point Furniture Market and in May for the October High Point Market. Existing large volume Cover Suppliers will be scheduled an appointment to travel to the La-Z-Boy Corporate Headquarters to present new Textile or Leather Designs. Existing low volume Cover Suppliers will be asked to send new Textile or Leather Designs to the corporate office for review
All new Textile Selections are required to be tested in the La-Z-Boy Testing Lab. All new leather placements will be tested at either the Leather Research Lab or the British Leather Center.
The Cover Supplier will have approximately 6 weeks lead time to deliver 200 yards of each color of the new textile pattern added to the line and 8,000 square feet of each color of the new leather tannage added to the line For overseas Suppliers, the swatching & market unit requirements will need to be shipped via air freight.
All new Cover Introductions are required to follow the La-Z-Boy Cover PPAP Process. Details of this process may be requested from La-Z-Boy Cover Procurement.
La-Z-Boy will develop an annual sales forecast for every new cover stock keeping unit that is added to the line. This forecast will be shared with the Supplier. La-Z-Boy will order a percentage of this initial forecast for stocking purposes for delivery prior to the start of the High Point Furniture Market.
La-Z-Boy is a participating member of the AHFA Joint Industry Fabric Standards and Guidelines Association. Fabric sourced and purchased by La-Z-Boy must meet all of the Guidelines and Standards that are documented in the AHFA Fabric Standards and Guidelines Manual. Due to the stringent quality expectations that the La-Z-Boy Consumer requires of our Furniture, there are several additional quality standards that are unique to La-Z-Boy.
The following procedures and policies are unique to La-Z-Boy and are not covered in the AHFA Joint Industry Standards and Guidelines Manual. The Fabric and Fabric Supplier are required to comply with the below listed testing specifications and quality processes. For copies of these procedures and specifications, contact La-Z-Boy Branded Business Cover Procurement.
La-Z-Boy is a participating member of the AHFA Joint Industry Leather Standards and Guidelines Association. Leather sourced and purchased by La-Z-Boy must meet all of the Guidelines and Standards that are documented in the AHFA Leather Standards and Guidelines manual. Due to the stringent quality expectations that the La-Z-Boy Consumer requires of our Furniture, there are several additional quality standards that are unique to La-Z-Boy.
The following procedures and policies are unique to La-Z-Boy and are not covered in the AHFA Joint Industry Leather Standards and Guidelines Manual. The Leather and Leather Supplier are required to comply with the below listed Testing Specifications and Quality Processes. For copies of these procedures and specifications, contact La-Z-Boy Branded Business Cover Procurement.
La-Z-Boy is a participating member of the AHFA Joint Industry Fabric Standards and Guidelines Association. Vinyl and Urethane sourced and purchased by La-Z-Boy must meet all of the guidelines and standards that are documented in the AHFA Fabric Standards and Guidelines Manual. Due to the stringent quality expectations that the La-Z-Boy Consumer requires of our Furniture, there are several additional quality procedures, processes, and standards that are unique to La-Z-Boy.
The following procedures, policies, and standards are unique to La-Z-Boy and are not covered in the AHFA Joint Industry Standards and Guidelines Manual. The Urethane and Vinyl and the Supplier are required to comply with the below listed testing specifications and quality processes. For copies of the procedures, please contact La-Z-Boy Branded Business Cover Procurement.
La-Z-Boy provides a 1 year warranty on the textile or leather from the date the furniture is delivered to the consumer’s home. La-Z-Boy expects the textile or leather to meet all Consumer performance expectations when the Cover is produced to the original testing specifications that were present when the Cover was added to the La-Z-Boy Line. If the cover fails to perform in a satisfactory manner for the Consumer and the cover is found to not meet the original testing standards, the Cover Supplier will be responsible for all costs associated with the failure. This could include the cost for replacement of the furniture for the Consumer.
It is important for the Cover Supplier to understand that La-Z-Boy does not require the return of consumer warranty failure furniture components or the piece of furniture that is being replaced for the consumer. While we do attempt to retrieve consumer warranty components and furniture, La-Z-Boy cannot guarantee that the Company will be able to provide the Cover Supplier with the failed components or furniture for analysis. La-Z-Boy requires the Cover Suppliers to stand behind the warranty costs for all field failures that La-Z-Boy determines are the result of covers that are not performing to standard.
La-Z-Boy follows the AQL Statistical Audit Process for the auditing of textile rolls shipping to the La-Z-Boy Manufacturing Plants. Please ask the Cover Quality Department for the Power Point Presentation for the AQL Audit Process.
La-Z-Boy follows the AQL Statistical Audit Process for the auditing of outsourced cut and sewn sets being prepared for shipment to the La-Z-Boy Distribution Centers. Please ask the Cover Quality Department for the Power Point Presentation for the AQL Audit Process.
La-Z-Boy reserves the right to conduct statistical audits of Leather Hides shipped to the Newton Leather Cutting Center. La-Z-Boy requires all Leather Suppliers to conduct internal statistical audits based upon the guidelines of Mil Spec 105 on the leather hide containers being prepared for shipment to the Newton LCC and report those findings in the La-Z-Boy Hide Inspection Report. La-Z-Boy reserves the right to conduct random on site audits at the La-Z-Boy Hide Supplier Production Plant. The below listed quality templates are used to conduct leather quality audits.
La-Z-Boy uses a scorecard to measure the performance of all Cover Suppliers on a quarterly basis. The scorecard measures the following Performance Characteristics:
La-Z-Boy Cover Supply Chain team members track supplier quality, on time delivery, and service performance throughout each quarter in the La-Z-Boy fiscal year. After the closing of the fiscal year quarter, the Cover Supply Chain team summarizes all data on the Cover Supplier tracked throughout the quarter and will calculate the Cover Suppliers score for the quarter. The information is published on the cover scorecard template and posted to the cover supplier portal for access by the Cover Supplier. The Suppliers performance score is posted to a summary report that is reviewed quarterly with the La-Z-Boy Merchandising Team.
La-Z-Boy Casegoods Division requires all suppliers to sign a Vendor Requirement Agreement that includes requirements specific to La-Z-Boy Casegoods. For Casegoods suppliers, contact your Casegoods purchasing contact for a copy of this agreement.