Survey: Office furniture makers, suppliers generally have good relations

Suppliers to the office furniture industry enjoy relatively good business relations with their manufacturing customers, according to the results of a new survey.

The results illustrate the strides furniture makers have made over several years to build stronger ties with their suppliers, though there remains room for improvements, said Michael Dunlap of Michael A. Dunlap & Associates.

The old stereotype of a contentious supplier-customer relationship “has turned a major corner” over the last decade or more, said Dunlap, whose survey provides for the first time a glimpse at the relations between a key industry in West Michigan and its supply base.

As with manufacturing in general, office furniture makers view suppliers today as strategic partners, often involving them in the research and development process for new products, Dunlap said.

“The entire relationship between a supplier and a furniture manufacturer is completely different than it was 30, 20 or 10 years ago,” he said. “There’s a level of trust that wasn’t always there.”

Dunlap surveyed 200 suppliers during May to gauge their views on furniture makers. He asked them to rate manufacturers in 10 business areas — ranging from “excellent” to “not acceptable.”

Inscape, based near Toronto was ranked as the top customer, and Green Bay, Wisc.-based KI was ranked second. Zeeland-based Herman Miller Inc. ranked third.

Suppliers did more business with Steelcase Inc., as the industry’s largest manufacturer, than any other company. Holland-based Trendway Corp. was mentioned most as the company with which suppliers want to do business.

Dunlap, an industry veteran who once worked for a supplier, said the results “pleasantly surprised” him, though there were a few “unacceptable” scores.

“The relationship between the suppliers and office furniture manufacturers is in a really good condition,” Dunlap said. “For the most part, I think the supply base is reasonably happy with their business relationships, although there is certainly room for improvements.”

Information-technology support for suppliers, for instance, “seems to be an area that requires and demands attention” from manufacturers, Dunlap said.

“I.T. support is really lacking,” he said.

Accounting and financing and engineering also could improve, he said.

Manufacturers generally scored “excellent” in supplier relations on product development.

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