Panel Board Supply Chain Report

A preliminary study of the supply and use of panel board products. The aim of this study was to assist panel board manufacturers to understand and react to the needs of the rapidly changing furniture industry.

A Furniture Makers Prospective 

Summary

FIRA, the leading provider of business services to the furniture industry, commissioned ukfirst to conduct a preliminary study of the issues surrounding the supply and utilisation of panel board products to the furniture industry.  Ukfirst is renowned for its expertise and impartiality and has experience of analysing and mapping the fabric in the furniture supply chain. The aim of this study was to assist panel board manufacturers [e.g. particleboard and medium density fibreboard (mdf)] to understand and react to the needs of the rapidly changing furniture industry.

This study takes the first step along this road and offers a perspective from the furniture manufacturing industry.  Issues such as reliability of supply and quality control have been covered.

Panel board is a key raw material in the furniture industry.  MDF and chipboard are the two panel board products that commonly find their way into furniture such as domestic 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 understood fully. 

The analysis has produced a high level mapping of the supply chain, and identified key enablers and inhibitors for the furniture industry.  The high-level map followed the board from production through to furniture manufacture including converters (or intermediaries). It was found that recent rapid increases in raw material costs and the changing needs of consumers have caused the furniture manufacturer to adapt.  The UK furniture manufacturer needs to compete on delivery, quality and cost.  As a result, lead time is becoming increasingly  important. 

This study 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 add costs to the supply chain. Companies within the supply chain must collaborate and work together if changes are to happen.

This study also reveals that those companies within the supply chain that embrace this approach can reap large rewards – not just by reducing bottom line costs, but by improving competitiveness and by securing future business, whilst significantly reducing their carbon footprint.

Contents of the report:-

Summary

The Furniture Industry – An Introduction
           

Study Findings        

• The Furniture Supply Chain                                                        

• Responsiveness                                                                            

• Supply Chain Dynamics                                                               

• Postponement                                                                                 

• Data Analysis                                                                      

• Supply Chain Benchmarking

Discussion  

• Supply Chain Efficiencies                                                            

• Supply Chain Costs                                                                                   

• Quality                                                                                              

• Communication                                                                              

• Inventory                                                                                          

• Environment    

Conclusions   

Bibliography

 FIRA members have free access to the report by clicking here.  Please note that you must be logged in as a member for this link to work. Alternatively please contact customer services for a pdf or hard copy.

Non members can purchase this report at a cost of £200 + VAT.  For further information please contact FIRA's customer services on 01438 777700 or e-mail info@fira.co.uk