Supply chain management of furniture industries: a comparison between private and public sector

Abstract

The furniture sector in Bangladesh has developed in keeping with the changing times and the growing tastes and demands of the customers. Against this backdrop, the Government of Bangladesh (GOB) declared the furniture industry a 'thrust sector' (The Daily Star, 2014). The private sector has been playing a vital role in the furniture sector. The public sector is also a player in this industry. The purpose of this report is to compare the supply chain management of private-sector furniture industries with public-sector furniture industries. HATIL from the private sector and Lumber Processing Complex (LPC) Kaptai of Bangladesh Forest Industries Development Corporation (BFIDC) from the public sector have been selected as case studies for this study. This report shows that the Supply Chain Management (SCM) of private sector is more efficient and effective than SCM of the public sector. To enhance the efficiency in the SCM in the furniture industries of public sector, some recommendations such as modernization and automation in manufacturing processes, sophistication in design of furniture, strengthen waste management, and innovation are recommended in the conclusion. The report suggests that public-private collaboration is indeed needed in the area of technology transfer, knowledge sharing and exchange of technical knowhow in the furniture industries to unlock its full potential.