Coricraft Case Study: Local Growth Through Lean

The case study examines Coricraft’s localisation efforts and their impact on South Africa’s furniture sector. It highlights how the deliberate application of lean manufacturing principles, supported by the Localisation Support Fund (LSF) and aligned with the Furniture Industry Master Plan, has delivered measurable results in competitiveness, job retention, and supply chain development.

Shifting production and securing jobs

Under the Foschini Group’s broader strategy to localise their manufacturing base in support of their business strategy, Coricraft has successfully transitioned four product lines—previously imported—into local production at its Epping facility in Cape Town. This shift has unlocked an annualised R80 million in domestic manufacturing value (as of Q2 2024), safeguarded nearly 500 jobs, and strengthened demand for raw materials like timber, board, foam, and leather. By localising both finished products and upstream inputs, the initiative has generated multiplier effects across the value chain, further embedding jobs in South Africa’s economy.

Efficiency gains through lean practices

Coricraft’s transformation was underpinned by a deliberate plan to boost competitiveness. Industrial engineers from Dizani Consulting worked with the company to implement lean manufacturing tools, including time-and-motion studies, standardised planning systems, real-time performance dashboards, and tiered visual management. These interventions improved workflows, tightened logistics through scheduled pull systems, and adapted production layouts to product mix. As a result, productivity increased by more than 8%, efficiency improved by 38%, and planning and costing accuracy was strengthened.

A scalable model for localisation

Beyond the immediate performance improvements, Coricraft has established a repeatable operating model that can be applied across the furniture industry. By planning to standard times rather than units, measuring performance at the right level (individual or team), embedding daily leadership routines, and aligning layouts and flows to demand, firms can replicate Coricraft’s success. This approach provides a scalable platform for adding new local product lines, deepening supply chains, and reducing reliance on imports while protecting jobs.

Strategic implications for South Africa’s furniture industry

The Coricraft initiative demonstrates the power of partnerships between business and strategic support organisations like the LSF. It shows that localisation is not about isolation or protectionism, but about leveraging domestic demand to strengthen competitiveness and resilience. By embedding lean practices and focusing on continuous improvement, South African furniture manufacturers can compete with global imports, create sustainable jobs, and build stronger local supply chains.