Flexible production in the sheet metal and furniture segment

From inventory management to batch size one

Bo Bruun Holm

Sales | kitchen and furniture industry
bbh@nicholaisen.dk +45 +45 40 54 47 64

The transition from stock production to made-to-order production is a paradigm shift in the sheet metal and furniture industry. Flexibility, digital management and integrated logistics are becoming crucial parameters to meet market demands.

The sheet metal and furniture industry today is facing several changes. Product development is accelerating, customer needs vary more, and capital tied up in large inventories puts pressure on companies' finances. One of the most pervasive trends in this particular segment is the shift from classic warehouse production to batch size one - production directly to order.

From stock to order
In the panel and furniture segment, manufacturers have traditionally ensured delivery reliability through large stocks of finished goods. However, this method involves high capital tied up, risk of obsolete goods and high wastage costs.

Batch size one changes the model: Production only starts when an order is sold. This shifts the capital commitment to the raw material level instead of the finished goods. For sheet metal and furniture manufacturers, this means freed-up liquidity, reduced risk of write-downs and greater sustainability because no products are produced that are never sold.

Technology integration and control
At the heart of modern sheet metal and furniture production is not a single machine, but the interplay of processes controlled by software and logistics systems. Drilling, nesting, edge banding and assembly are tied together in an integrated flow where logistics are automated and components are digitally controlled.

The components are produced in the order that provides the best material consumption. They are then automatically sorted back into the correct order for assembly. The entire flow is controlled backwards from the time of delivery, so finished furniture is always ready for shipment.

Economic and sustainable benefits for sheet metal and furniture manufacturers
The move to batch size one brings a number of clear benefits to the segment:

- Reduced inventory ties: Capital is freed up when finished goods inventories are eliminated.

- Less waste: Production is only based on furniture sold. The risk of obsolescence is eliminated.

- High flexibility: Small series and single pieces can be produced without higher unit costs.

- Better material utilization: Software optimization ensures minimal waste in cutting and machining.

- Shorter time-to-market: New furniture types can be introduced quickly as changeovers are digital rather than mechanical.

- Sustainability: Less overproduction and lower resource consumption supports green transition in the industry.

For customers in the panel and furniture segment, this production method means faster delivery, greater freedom of choice and more individualization. Delivery times are kept short without the manufacturer having to commit to large stocks. This allows the segment to offer high flexibility without losing efficiency.

Combining standard and special
A particular strength in the panel and furniture segment is the need to combine competitive standard machines with complex end-to-end solutions. This combination allows manufacturers to deliver on price and quality as well as build flexible setups for more advanced furniture production.

Manufacturers who implement batch size one not only achieve more efficient production, but also a stronger competitive position. The winners of the future in the sheet metal and furniture segment will be those who can combine economy, sustainability, flexibility and customized solutions in a single production philosophy.

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