Ikea

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Ikea

  1. 1. IKEA<br />Distribution Network Design<br />Fromsuppliertostore<br />Rosa Ruiz<br />MGEPS<br />
  2. 2. …distribution is all about making the route from the manufacturer to the customer as short as possible.<br />At IKEA…<br />
  3. 3. A global distributionnetwork<br />Largevolumes<br />Flat packages<br />Lowcosts.<br />Hallmarks of IKEA distribution<br />
  4. 4. <ul><li>296 IKEA stores in 36 countries.
  5. 5. 27 distribution centers.
  6. 6. 11 customer distribution centers in 16 countries.
  7. 7. 41 trading services offices in 30 countries.
  8. 8. 1.380 suppliers in 54 countries.
  9. 9. Purchases most of its supplies from Europe
  10. 10. 9.500 products</li></ul>IKEA facts<br />
  11. 11. <ul><li>Sourcing materials close to the supply chain to reduce transport costs.
  12. 12. Building its DCs closer to seaports so that it can use more of ocean transport and less of road transport.
  13. 13. Delivering products directly from the supplier to IKEA stores. This slashes handling costs, reduces road miles and lowers the carbon footprint.
  14. 14. Warehouse attached to their retail stores.</li></ul>IKEA success<br />
  15. 15. InventoryFlow<br />
  16. 16. <ul><li>Using flat packs, packaging is designed to maximize the cube of ocean containers and domestic over-the-road trailers.
  17. 17. This allows IKEA to ship more units at a time which has direct impact in the reduction of their overall landed costs.
  18. 18. A better use of stock and warehouse space
  19. 19. Transporting goods where possible by rail and sea.
  20. 20. Utilizing fuel-saving techniques that allows to be cost-effective and environmentally friendly.</li></ul>IKEA success (2)<br />
  21. 21. Lessthan 1% is air freighted.<br />The aim is to constantly increase the proportion of goods transported by rail.<br />More deliveries by rail in future<br />
  22. 22. http://www.ikea.com/ms/en_GB/about_ikea/press_room/distribution.pdf<br />http://www.3plwire.com/2005/09/30/ikea-logistics/<br />http://www.thetimes100.co.uk/case-study--swot-analysis-sustainable-business-planning--110-368-1.php<br />References<br />

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