Summary
• Users of panel products are becoming more dependent on just-in-time delivery.
• Lawcris has made large investments in logistics.
• Companies offering a total solution have an advantage over those that can only offer part of the product range.

The panel industry plays a leading role within the retail high street, although the average consumer is probably unaware of its relevance. Competition for the consumer pound is intense and this has driven the market to new levels of sophistication in the design and build of the main retailers’ outlets.

This has given a boost to the panel industry, with design being a major factor; consumption of panel products has greatly increased. This, in turn, has been a catalyst to the panel manufacturers who have invested in developing new décors and textures, offering a high level of choice and quality at affordable costs.

While this has been good for the industry, pressure has been placed on the manufacturers and distributors. Sharp rises in the cost and competition for raw materials, increasing energy costs and a resistance of the high street to accept price increases has brought margins down to a minimum. This has been reflected with a number of large shop fitters facing severe financial difficulties.

Value-added service

With a pressured and volatile market it has become increasingly important to offer a value-added service to maintain a competitive edge. It is not enough to offer low prices. Users of panel products are becoming more and more dependent on just-in-time delivery and rely heavily on outsourcing components during their peak periods.

By developing and implementing added-value services such as those provided by modern CNC machine shops, distributors can see their investments pay dividends in customer retention and order-winning. Controlling all of the processes required to manufacture components to customers’ exacting specifications is key to maintaining a strong position within the market.

It is important not to become complacent once this is established; a programme of reinvestment is required to safeguard the company’s position. This emphasises the importance of carrying large stock holdings, being highly industry aware and having a dedicated in-house logistics and transport department.

At Lawcris we’ve focused strongly on reliability of delivery. This has meant large investments in delivery vehicles and forklift trucks. Overall logistics management is vital to the service package the company offers and twenty-four-hour warehouse operations have also been introduced to ensure the free flow of transport. We’ve put the systems in place that mean customers which demand morning deliveries can place their orders as late as 5pm and receiving their delivery the next day.

The high level of road congestion makes it increasingly difficult to estimate the time of arrival of delivery vehicles, so tracking is important. Companies that can make reliable deliveries and let customers know exactly where their load is have an additional unique selling point.

With fewer full loads and more just-in-time deliveries, employing skilled logistics managers to control the loading and route planning is paramount. Without these high quality personnel, delivery soon breaks down and, if left unchecked, customers soon look for other suppliers.

Logistical jigsaw

An increase in the quantity of manufactured components alongside standard panel products adds to the logistical jigsaw of leading panel distributors. This not only calls for a large investment in technology and skilled operators but also a high level of planning and quality control within the logistic department. Damaged stock is an expense no-one can afford.

The panel industry is changing. There are fewer distributors competing over an increasingly competitive market. To be competitive, a company must be proactive, think smart and be prepared to invest heavily in its people, stock, technology and logistics.

Companies offering a total solution will have a very definite advantage over companies that can only offer part of the product range. Strong leadership with highly skilled teams that can negotiate at the highest levels are the essence of today’s most successful businesses.

Awareness of changes in the political environment, being informed and having the confidence of your convictions are part of the armoury needed to compete. In a changing, competitive market it is survival of the fittest.