THE ALUMINUM SUPPLY CHAIN – A STRATEGIC BACKBONE OF THE GLOBAL FURNITURE INDUSTRY

Cost optimization is not about cutting corners – it is about building sustainable value in aluminium furniture supply chains

In the global furniture industry, where competition intensifies and margins are constantly under pressure, “price” is no longer just the final number on a quotation. Leading furniture brands are now looking deeper into cost structures – and more importantly, the real value each supply chain partner brings.

For aluminium materials, especially extruded aluminium profiles used in furniture, the way a supplier designs and manages its cost structure directly affects a brand’s long-term competitiveness.

1. Cost structure in aluminium furniture is more than raw material prices

The cost of an aluminium furniture component goes far beyond aluminium ingot prices. A complete cost structure typically includes:

• Aluminium raw materials (affected by LME and sourcing)

• Extrusion, machining, and surface treatment

• Quality control and defect rates

• Inventory management and logistics

• Hidden costs caused by delays, rework, or inconsistent quality

Choosing a low-price supplier may reduce upfront costs, but often creates higher hidden costs over time.

2. Where real value is created in aluminium supply chains

Value does not come from the lowest unit price. It comes from stability, control, and predictability. A well-structured aluminium supplier delivers:

• Consistent quality across production batches

• Low defect rates, reducing rework and waste

• Reliable delivery schedules, improving inventory planning

• Flexibility for new designs without cost spikes

• Long-term cost planning instead of short-term problem solving

This is why global furniture groups increasingly prioritize suppliers with strong cost management capabilities.

3. Smart cost optimization: from factory floor to design table

An efficient aluminium supply chain connects manufacturing, design, and logistics. When suppliers understand design intent and market requirements, they can:

• Propose optimized aluminium profiles with lower weight and high strength

• Reduce material waste while meeting technical standards

• Standardize surface treatments across product ranges

• Simplify components to shorten assembly time

Smart optimization does not reduce quality – it enhances overall product value.

4. DONG ANH ALUMINIUM (CKDA): Cost optimization through systems, not shortcuts

With over 20 years of experience, Dong Anh Aluminium approaches cost efficiency from a system perspective:

• Integrated extrusion and surface treatment lines

• Strict quality control at every stage

• Standardized production to minimize defects

• OEM/ODM capabilities aligned with customer designs

• Early collaboration with clients to optimize costs from the design phase

As a result, CKDA delivers not only aluminium products, but cost-effective supply chain solutions for export-oriented furniture brands, including IKEA.

5. Cost structure as a long-term competitive advantage

In the future, competitiveness will not depend on who offers the lowest price today, but on:

• Who helps brands control costs over the next 3–5 years

• Who supports product expansion without disrupting cost structures

• Who aligns with sustainability and long-term growth strategies

A strong cost structure is the foundation for sustainable value creation in the global furniture industry.