Eunice Cinnamon reviews the panel board supply chain

FIRA, the furniture industry’s leading authority on testing and research, commissioned ukfirst to conduct a preliminary study of the supply and use of panel board products.  Ukfirst is renowned for its expertise and independence, and has worked extensively in the analysis and mapping of the “Fabric to Furniture” supply chain. The aim of this review was to look objectively at the supply chain and highlight areas for improvement that would benefit the whole supply chain.

Panel board is a key raw material in the furniture industry.  MDF and chipboard are the two panel board products that are commonly found in cabinets, kitchens and office desks.  It is estimated that between 70% and 90% of all UK MDF consumption is by furniture manufacturers.  Consequently, it is vital for all concerned that supply chain dynamics and the perspectives of core stakeholders are documented and fully understood. 

The furniture trade is the fourth largest manufacturing industry in size in the UK, valued at almost £10billion a year behind automotive, printing and publishing and pharmaceuticals.
The industry directly employs around 124,000 people within 7,500 companies and makes a significant contribution to the UK economy. In addition, the industry supports, and is supported by, a large supplier pool comprised of materials suppliers, component manufacturers, designers, distributors, contractors and retailers.

Board manufacturers are a vital part of this chain, but the industry is rapidly changing.  Furniture manufacturers are needing to adapt, and so too will their suppliers.  However, this is a positive message.  The solution to this only benefits those companies that embrace it.  Not only will it improve bottom line costs, but it will also benefit the end consumer, and positively affect companies’ carbon foot print. 

Supply Chain Observations
This work has shown that the current end to end supply chain from board manufacturer to furniture manufacturer has high levels of inventory and waste.  These dynamics make it difficult for the supply chain to respond flexibly, and significantly adds costs to the supply chain.  It is also interesting to note that as costs rise and availability decreases, the supply chain holds more inventory. 

Companies within the supply chain must work together to create a climate  for change.  The strengths of the UK furniture manufacturer are flexibility and responsiveness to customers needs, quick delivery and service.  

Recent rapid increases in raw material costs and the changing needs of the consumer have caused the furniture manufacturer to adapt.  The UK furniture manufacturer needs to compete on delivery, quality and cost, and as a result, lead time is becoming increasingly important.
 
The Way Forward
It is clear that UK manufacturers have many advantages that can be adapted to compete with the rapidly changing work place.  However, to fully exploit opportunities for growth will require world class performance.  A proven foundation of other industries and becoming more apparent in furniture, the concept of world class performance is vital where there is an efficient, active and effective supply chain.  This will lead to sustainable and competitive advantage. 

World Class performance can only be achieved through operational excellence.  Operational excellence and Lean is not about simply reducing costs, it is about understanding and eliminating waste, and what truly adds value to the customer.  Using this approach has been proven to be successful, and those that embrace it early enough will gain competitive advantage now and in the years to come. Bottom line costs can be reduced, and future business secured. More sustainable ways of working will reduce your carbon foot print and ease the burden on the planet.

For further information please contact .

<< Back