Furniture Supply and Install Contract

							Workpackage 1 : ‘Product Service Systems’ (leasing)
Paul Micklethwaite Faculty of Art, Design & Architecture | Kingston University



“How are PSS relevant to the UK office and contract furniture sector?”

 the PSS concept

 the potential

 the risks

 current UK practice

 the future
‘Product Service Systems’ (leasing) :
the concept

generally seen as more applicable to contract (repeat purchase /
business-to-business) than retail (single purchase / end consumer)
commerce


 product-oriented PSS :
product-focused | owned by consumer | sell additional services



 use-oriented PSS :
product-focused | owned by service provider | sell functions



 result-oriented PSS :
system-focused | owned by service provider | sell benefits
‘Product Service Systems’ (leasing) :
the concept (furniture)




 product-oriented PSS :
product-focused | owned by consumer | sell additional services



 use-oriented PSS :
product-focused | owned by service provider | sell functions



 result-oriented PSS :
system-focused | owned by service provider | sell benefits       ?
‘Product Service Systems’ (leasing) :
the potential




    “In essence, customers can choose from
        the complete range of InterfaceFLOR
       products and, in return for a monthly
    leasing charge, we undertake to supply,
            install and replace our products.”
‘Product Service Systems’ (leasing) :
the potential

By creating value from the provision of additional service rather
than additional product, it is possible to create a „win-win-win‟
scenario :

 greater benefit for the customer

 reduced environmental impacts

 financial success for the producer
      customer retention
      effective takeback
      competitive advantage
      less production
      job creation
      ahead of legislation?
‘Product Service Systems’ (leasing) :
the risks

 new business model : from selling products, to providing services

 new responsibilities

 need for pre-investment

 customer demand?

 shift in values?
‘Product Service Systems’ (leasing) :
current UK practice (furniture)


Interviews with seven UK manufacturers of contract furniture (plus one
housing contractor)

“add-on services around products, that aid environmental sustainability”

 product takeback
familiar | warranty | technical & logistical barriers

 repair, refurbishment & remanufacture
original design? | consumer demand

 product leasing
largely untried | “we‟re not a bank” | user damage? | complexity
‘Product Service Systems’ (leasing) :
the future … today’s event


 What has been your experience, if any, of leasing office and contract
furniture?

 What might be the pros and cons of leasing, rather than simply selling,
office and contract furniture?

 How receptive might the UK office and contract furniture market be to a
leasing service?

 What kind of partnerships might be required to make a furniture leasing
service work in this sector?