Home Furnishings Industry Terminology

Acceptable Quality Limit (AQL)

A statistical sampling standard that defines the maximum number of defects acceptable in a batch. Commonly used in pre-shipment inspections to balance quality risk and inspection cost.

We’re inspecting at AQL 2.5 for critical defects on this dining chair run. | The supplier agreed to AQL 1.0 for the upholstery seams. | Raising the AQL reduced chargebacks from our retail partners.

ANSI/BIFMA Standards

Performance and safety standards for furniture (especially office/contract) developed by ANSI and BIFMA, covering durability, stability, and safety tests.

This task chair meets ANSI/BIFMA X5.1 durability requirements. | The lounge seating was tested to ANSI/BIFMA X5.4 for public spaces. | Retailers asked for BIFMA-compliant barstools in the assortment.

Assortment Planning

The process of selecting the right mix of products, styles, price points, and options for a season or channel to maximize sales, margin, and inventory productivity.

Our spring assortment expands the mid-century casegoods and neutral upholstery. | We balanced breadth vs depth to hit OTB targets. | Add a vegan-leather option to round out the price ladder.

Bill of Materials (BOM)

A structured list of all components, materials, and subassemblies required to manufacture a product, often with quantities and references to specifications.

Update the BOM to reflect the switch from PU foam to latex in the cushions. | The BOM shows three hinges and two cam locks per cabinet. | BOM rollups reveal a cost increase from brass hardware.

CAL TB117-2013

California’s upholstered furniture flammability standard requiring resistance to smoldering sources. The 2013 revision emphasizes smolder performance and reduced use of flame retardants.

Foam and covers must pass CAL TB117-2013 smolder tests. | No added flame retardants are required under the updated TB117-2013. | Include TB117-2013 labels on all upholstered seating.

CARB Phase 2

California Air Resources Board formaldehyde emission limits for composite wood (MDF, particleboard, hardwood plywood). Now mirrored at the U.S. federal level by TSCA Title VI.

These MDF shelves are CARB Phase 2 compliant. | Vendor provided CARB certification for particleboard back panels. | Align CARB Phase 2 claims with TSCA Title VI labeling.

Case Pack

The number of sellable units packed in a master carton for shipping. A key parameter for freight efficiency, handling, and replenishment.

The lamps ship 2 per case; adjust the case pack for e-com. | Retailers prefer a case pack of 4 to fill endcaps. | Optimizing case pack cut our damages and freight class.

Casegoods

Non-upholstered furniture made primarily of wood, metal, or MDF (e.g., dressers, cabinets, dining tables). Distinguished from upholstered seating and bedding.

Q3 focus is casegoods: dressers, nightstands, and consoles. | Add veneer education to the casegoods training. | Casegoods turns lag upholstery; trim SKUs.

COGS (Cost of Goods Sold)

Direct costs of producing the goods sold, typically including materials, labor, and manufacturing overhead; often extended to landed cost in global sourcing contexts.

Switching to a different hinge lowers COGS by $1.25 per unit. | Landed COGS rose with the tariff change. | We can hit the margin target if we reduce COGS 6%.

Double Rubs (Wyzenbeek)

A North American abrasion resistance test for upholstery fabrics measured in double rubs (Wyzenbeek method). Higher counts indicate greater durability.

The sofa fabric is 50,000 double rubs—great for family use. | Hospitality spec calls for 100k double rubs. | QA rejected a low Wyzenbeek result on the boucle.

Dovetail Joinery

An interlocking woodworking joint used in drawer boxes and casegoods that provides strength and durability without relying solely on fasteners.

The dresser drawers feature English dovetail construction. | Upgrade to dovetails to support the warranty claims. | Marketing should call out dovetail joinery in PDPs.

Drop Shipping

A fulfillment model where the supplier ships directly to the end customer on the retailer’s behalf, avoiding retailer-owned inventory and warehousing.

This vendor can drop-ship accent chairs to the customer within 72 hours. | Drop ship reduces our DC footprint. | Set EDI for drop-ship acknowledgments and ASNs.

DTC (Direct-to-Consumer)

A sales model where a brand sells directly to end consumers (often online), bypassing traditional wholesale/retail channels.

Our DTC channel has higher gross margin but higher CAC. | DTC returns spiked in January; adjust packaging. | Segment DTC SKUs from wholesale for MAP control.

EDI (Electronic Data Interchange)

Structured, standardized electronic exchange of business documents (e.g., purchase orders, invoices, ASNs) between trading partners.

Enable 850 (PO) and 856 (ASN) for our largest retailer. | EDI chargebacks dropped after we fixed 810 invoices. | Wayfair requires EDI for drop-ship vendors.

Electrical Safety Listing (UL/ETL)

Third-party safety certification for electrical products (e.g., lighting, power-motion seating) verifying compliance with applicable safety standards.

This floor lamp is UL Listed for dry locations. | ETL certification is acceptable for our retailers. | Add the ETL mark to the socket label.

FOB (Free On Board)

An Incoterm indicating the seller delivers goods loaded on the vessel at the named port of shipment; risk and cost transfer to the buyer at that point.

Price is FOB Shanghai, buyer pays ocean freight. | Switch to FOB Ho Chi Minh to consolidate loads. | Per Incoterms, FOB applies to ocean shipments only.

Freight Class (NMFC)

U.S. LTL shipping classification based on density, handling, and liability per the National Motor Freight Classification, affecting freight costs.

These chairs rate Class 175 due to low density. | Right-size packaging to improve freight class. | Carrier reclassed the console to Class 125 after audit.

FSC Certification

Forest Stewardship Council certification assuring responsible forest management and chain-of-custody for wood and paper materials.

Table tops are FSC Mix from vetted mills. | Retailers require FSC claims on all acacia casegoods. | Audit the chain-of-custody for FSC compliance.

Harmonized Tariff Schedule (HTS) Code

The numeric classification used for customs/tariffs on imports and exports; determines duty rates and trade compliance obligations.

Classify this cabinet under HTS 9403. | The duty rate changed for 9403.60 metal furniture. | Broker flagged an incorrect HTS on the nightstand.

ILD (Indentation Load Deflection)

A measure of foam firmness used in upholstery and mattresses. Higher ILD indicates firmer foam.

Upgrade to 30 ILD foam for a firmer seat. | Spec calls for 25 ILD back cushions. | ILD drift triggered a comfort complaint.

Incoterms

International commercial terms published by ICC that define seller/buyer responsibilities for delivery, risk, and cost in global trade (e.g., EXW, FOB, CIF, DDP).

Quote under CIP vs DDP for comparison. | Our standard is FOB origin for containers. | Move from EXW to FCA to ease vendor handoff.

Inventory Turnover

How many times inventory is sold and replaced in a period (Cost of Sales ÷ Average Inventory). A key productivity metric.

Casegoods turns at 3.2; target 4.0. | Improve turns by cutting long-tail SKUs. | Higher turns freed OTB for holiday.

ISTA Packaging Tests

Standardized packaging performance tests (vibration, drop, compression) from the International Safe Transit Association to reduce damages in transit.

Run ISTA 3A on the flat-pack desk. | Amazon requires ISTA 6A for drop-ship parcels. | ISTA testing reduced transit damages 35%.

Janka Hardness Scale

A scale that measures the hardness of wood species by the force required to embed a steel ball; used to predict dent/scratch resistance.

White oak is 1360 on the Janka scale. | Rubberwood dents more easily—lower Janka rating. | Use higher-Janka species for tabletops.

KD (Knock-Down) Furniture

Furniture designed to be shipped flat and assembled by the customer (also called RTA—ready-to-assemble), reducing shipping volume and cost.

The bookcase ships KD with cam locks. | KD design reduced cube and freight costs. | Assembly time under 20 minutes is our target.

Kiln-Dried Wood

Lumber dried in a controlled kiln to a target moisture content (often 6–10%) to improve stability and reduce cracking, warping, and mold risk.

Kiln-dried to 8% moisture to minimize warping. | Reject lots above 12% MC. | Kiln schedules adjusted for thicker slabs.

Landed Cost

The total cost of a product once it arrives at the buyer’s door or DC, including purchase price, freight, duties, insurance, and other import fees.

Our landed cost includes duty, ocean, drayage, and brokerage. | Switching ports lowered landed cost $18 per unit. | Use landed cost to set MAP and margin.

Last-Mile Delivery

The final leg of delivery from a local hub to the customer. Service levels include curbside, threshold, room-of-choice, and white-glove.

Offer threshold and white-glove options at checkout. | Damages are highest in last-mile—repack for protection. | Partnered with a new last-mile carrier network.

Lead Time

The elapsed time from order placement to receipt, often including production, transit, customs clearance, and final delivery.

Current lead time is 90–120 days door-to-door. | Add capacity to cut upholstery lead time. | Longer lead times drive higher safety stock.

MAP (Minimum Advertised Price)

A policy setting the lowest price a reseller may advertise. Used to protect brand value and stabilize margins across channels.

Issue a MAP violation notice for that sale ad. | MAP holidays for BFCM are pre-approved. | IMAP tools help monitor marketplace pricing.

MDF (Medium-Density Fiberboard)

An engineered wood product made from wood fibers and resin, used widely in casegoods for stability, machinability, and cost efficiency.

Use MDF core with oak veneer for the door. | CARB/TSCA labels required on MDF components. | MDF machines well but needs sealing.

Minimum Order Quantity (MOQ)

The smallest quantity a supplier will produce or sell per order, often set to optimize setup costs, material yields, or capacity.

Factory MOQ is 300 pieces per color. | Low MOQs enable marketplace testing. | We’ll aggregate POs to hit the MOQ.

Oeko-Tex Standard 100

A certification that textiles have been tested for harmful substances and meet human-ecological requirements for product safety.

All bedding fabrics are Oeko-Tex certified. | Add the Oeko-Tex hangtag to PDP assets. | Oeko-Tex backs up our ‘safe for skin’ claim.

OEM/ODM

OEM: manufacturer builds to buyer’s specifications. ODM: manufacturer designs and produces products that a buyer can brand and sell.

We’ll ODM a proprietary dining collection. | As OEM, the factory builds to our spec. | ODM shortens development by using vendor designs.

Omnichannel Retail

Integrated customer experience across online, mobile, and stores with shared inventory, pricing, and service to remove channel friction.

Enable BOPIS and ship-from-store for sofas. | Unified inventory powers endless aisle. | Omnichannel returns need repack standards.

Open-to-Buy (OTB)

A merchandising budget that controls how much inventory a retailer should purchase within a period, balancing sales plans and on-hand stock.

We have $250k OTB for Q2 upholstery. | Slow sell-through tightened our OTB. | Use OTB to time reorders post-shows.

PLM (Product Lifecycle Management)

Systems and processes that manage product data, specs, BOMs, samples, and approvals from concept through end-of-life.

Create specs and BOM in PLM for version control. | Route lab dips and CFAs via PLM. | PLM workflows sped up approvals pre-market.

Prop 65 (California Proposition 65)

California regulation requiring warnings if products expose consumers to certain listed chemicals above safe-harbor levels; often impacts labeling for finishes, metals, and plastics.

Add Prop 65 warning for lead content in solder. | Review Prop 65 settlement language on hangtags. | Maintain documentation for Prop 65 safe harbor exposure.

Quality Control (QC) Checklist

A detailed inspection protocol covering functional tests, dimensions, finish, labeling, and packaging to ensure consistent product quality.

Include edge-banding and veneer seam checks in the QC. | QC references AQL and packaging ISTA steps. | Vendors must sign off on the QC checklist.

Sales and Operations Planning (S&OP)

A cross-functional planning process that synchronizes demand, supply, and financial plans to set a single operating plan.

S&OP aligned supply with the holiday forecast. | We raised capacity in S&OP after the rug launch. | S&OP cadence reduced stockouts in top SKUs.

SKU

Stock Keeping Unit; the unique identifier for an item/variant used for forecasting, inventory management, and merchandising.

Consolidate SKUs to improve turns. | Each fabric color needs a unique SKU. | SKU proliferation is hurting pick efficiency.

STURDY Act / ASTM F2057

U.S. federal law and adopted standard addressing tip-over safety of clothing storage units. CPSC enforces ASTM F2057 as the mandatory stability standard.

All dressers must comply with the CPSC-mandated ASTM F2057 tip-over standard. | Update stability tests to align with STURDY. | Add anti-tip warnings per F2057.

Third-Party Logistics (3PL)

Outsourced logistics providers that offer warehousing, fulfillment, transportation, and returns processing services.

Move West Coast fulfillment to a 3PL. | Our 3PL handles pick-pack and reverse logistics. | 3PL SLAs include 24-hour order turnaround.

Tip-Over Restraint (Anti-Tip Kit)

Hardware and instructions provided to secure furniture (especially casegoods) to walls to prevent tip-over accidents.

Include an anti-tip kit with every dresser. | Retail PDP must show anti-tip installation. | Field claims dropped after adding metal tip kits.

TSCA Title VI

U.S. EPA regulation setting formaldehyde emission standards for composite wood products, harmonized with CARB Phase 2 limits, with specific labeling and recordkeeping.

Label composite-wood products to meet TSCA Title VI. | Keep mill certificates for TSCA audits. | TSCA aligns with CARB Phase 2 limits.

UPC/EAN Barcodes

Global product identification barcodes (UPC in North America, EAN internationally) governed by GS1, used for scanning and inventory control.

Assign a unique UPC to each color/size variant. | GS1 check digit failed on that EAN. | Retailers won’t onboard SKUs without UPCs.

Upholstery

Furniture components involving frames, support systems (springs/webbing), foam/fill, and covers (fabric/leather/vinyl) assembled into seating or padded items.

This frame uses sinuous springs and high-resiliency foam. | Switch to performance fabric on the sectional. | Check seam strength on upholstered arms.

Veneer

Thin slices of wood applied to a substrate (like MDF or plywood) to achieve a solid-wood appearance with better material yield and stability.

Oak veneer over MDF core keeps costs down. | Book-matched veneer improves the tabletop look. | Mind veneer thickness for sanding allowances.

VOCs (Volatile Organic Compounds)

Organic chemicals that can off-gas from finishes, adhesives, and foams. Managing VOCs improves indoor air quality and compliance.

Use low-VOC waterborne finishes in the nursery line. | GREENGUARD Gold limits VOC emissions. | Air out packaging to reduce VOC odor on arrival.

White-Glove Delivery

A premium last-mile service that includes in-home placement, assembly, and packaging removal, often scheduled by appointment.

Offer room-of-choice with assembly and debris haul-away. | White-glove reduces returns for large casegoods. | Charge a premium for white-glove on marble tables.