Downloaded 130 times
Uploaded byAnanya Jain
Ikea - operations and supply management
IKEA, founded in Sweden in 1943, emphasizes cost reduction and innovative design, making affordable home furnishing products accessible worldwide with over 351 stores across 46 countries. The company operates on a business model focused on low costs and supplier collaboration, utilizing modularity in production to benefit suppliers and customers alike. IKEA prioritizes customer satisfaction through self-assembly products, diverse service offerings, and sustainability initiatives, maintaining high standards for suppliers to ensure quality and ethical practices.
More Related Content
Similar to Ikea - operations and supply management
Ikea - operations and supply management
- 1.
- 2. FOUND BY INGVAR KAMPRAD,SWEDEN, IN 1943 A LI'LL ABOUT IKEA COMPETE BY USING A NEW STRATEGY - COST REDUCTION AND INNOVATIVE IDEAS THE FIRST SHOPS OPENED OUTSIDE OF SWEDEN WHERE IN DENMARK AND NORWAY HEADQUARTER - NETHERLANDS SPREAD ALL AROUND 46 COUNTRIES WITH 351 STORES. IKEA DELIVERS OVER 250 MILLION CUBIC METRES OF PRODUCTS EACH YEAR.
- 3. IKEA POSITIONING "For price anddesign conscious customers all around the world, who are looking for a wide range of valuable products, IKEA with a Scandinavian heritage, makes people's lives easier by offering them home furniture with a form, function and affordability that features good quality and innovative designs while welcoming customers with a unique purchasing experience as IKEA allows them to touch, select, carry and assemble the best value for money products to their homes, making their customers feel in-vogue and satisfied." GROUP F - SMS1
- 4. “By offering awide range of well-designed, functional home furnishing products at prices so low as many people as possible will be able to afford them. Also by giving people the possibility to grow, as individual and in their professional lives, to create a better relationship with customers. “ MISSION
- 5. BUSINESS MODEL Shorten the distance betweenthe need of the customers and the possibilities of the suppliers. Low cost in every operation department, which will lead to low prices and high volumes.
- 6.
- 10.
- 11.
- 12. Business Intelligence Design Production & Trading HOME VISITS TREND RESEARCH FORECAST PRODUCTION VOLUMES BACKWARD INTEGRATION ALLIGNEDWITH MANUFACTURING EASY CUSTOMER ASSEMBLY LOW COST LOW TRANSPORTATION COST SWEDWOOD EXTERNAL SUPPLIERS - 80% Modularity
- 13. Modularity : a productionconcept widely used by IKEA "Modularity is the degree to which a system components may be separated and recombined" Eg: wheels of a table are the same like that of a chair
- 14. IKEA & it'sSuppliers OBJECTIVE : gain long-term relationships, encourage suppliers to deliver better quality IKEA AUDIT : over every external supplier in order to meet their ideal working conditions, and avoid exploitation among their workforce. Once IKEA commits to it's suppliers for a certain amount of units, it has to take the delivery of those units - THERE'S NO GOING BACK IKEA Way of Purchasing Home Furnishing Products (IWAY), help manufacturers reduce the impact of their activities on the environment. IWAY raise standards by developing sustainable business activities and leaving positive impacts on the business environment in which the suppliers operate.
- 15.
- 16.
- 17. Distribution Department Retail Department Marketing Department Distribution centres work aswholesaler IKEA´s store work as a warehouse - Flat packaging is used to minimize distribution cost 7 x units per shipping than the product already assembled Forecasting system based on historical data provide each store with the ideal quantity Clear message: cost advantage of brand 70% of budget - printing catalogues 212 million of copies of IKEA catalogues printed in 29 languages, online catalogues downloaded 9.7 million times.
- 18. IKEA & it'sCustomers IKEA design's focus on people with limited income and limited living space IKEA Consumers : half producers-half consumers, the products are self transported, self assembled To achieve a low cost, no frill services are offered to the consumers IKEA strives to offer its consumers - Quality, Speed, Dependability, Flexibility and Cost. IKEA offers it's consumers 120 days to return or exchange the product if unsatisfied.
- 19. IKEA & it'sother Customer Services IKEA offers for the furniture to be delivered to the consumer's home for a premium price IKEA also sends a technician to the consumer's home for assembling the product if needed. IKEA sends over "Dr. Furniture" to the consumer's home if the consumer is dissatisfied or has incurred any injury from IKEA's products - incase the product caused an injury to the consumer or harmed the consumer, the product will be pulled out of production and the retail stores immediately.
- 20.
- 21. Improve conditions fortheir direct and indirect employees Expand into new countries Entering the second hand furniture market Improve the relationship between suppliers and shops, for the suppliers to understand the customers and the reasons behind every purchase or product return better. IKEA's FUTURE GROWTH
- 22. Our visit toIKEA, Madrid Thank you