IKEA adhere to their own design and have a product patent. To do so is conducive to cost control and maintain consistent quality standards . In order to coordinate sourcing and sales markets in the space of contradiction, to ensure the normal operation and development of IKEA’s global business to keep IKEA in the global market on the cheap and fashionable brand image. Efficient, agile, low-cost supply chain management has become the core of IKEA. IKEA is divided global market into 8t regions, 28 distribution centers located in 17 countries worldwide, including 19 distribution centers in Europe, 5 in USA ,1 in shanghai and 1 in Malaysia. In logistics ,IKEA not only reduce costs, but also try to environmentally friendly.
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IKEA has many innovations in logistics, like the flat packaging, DIY group and paper tray which consumers are familiar. Now the Optiledge is a completely different from the ordinary tray a container unit equipment (components), IKEA to invest $ 30 million, which lasted for several years successfully developed for the transportation of sea containers, the perfect unity of the cost of shipping and efficient loading and unloading, while also reducing the damage to the cargo handling process. IKEA in the global procurement and sales process are based on container transportation.
Tray operating in the process of loading and unloading of containers, each container loading and unloading time of only 30-40 minutes; not use the tray, then, it would take 3-4 hours, the tray use will undoubtedly greatly reduce the overall logistics costs. The use of the tray is the basis of the efficient operation of the logistics center. The pallet is used by the logistics center management is also very detailed. IKEA strictly control every aspect of logistics, in order to ensure the lowest cost. IKEA put most of the world’s 20 distribution centers and central warehouse in the air and sea road in order to save time. IKEA`s goods to be transported to central warehouses and distribution centers. through the scientific calculations, determine which products in the local manufacture and sale, which are exported tooverseas shops. Each IKEA store according to their needed to buy these products from IKEA trading companies .Through the trading IKEA can be smoothly all store profits absorbed into foreign low-tax or tax-free countries and regions. Tablet packaging strategy to reduce costs.
Page 2 The IKEA supply chain Essay
In storage and transportation, IKEA use flat packedto reduce furniture damage during storage and transport rate and the occupier of warehouse space; more importantly, flat packaging greatly reduces the cost of transportation of the products, making the worldwide productionlarge-scale layout of the production possible. It is said that the tablet packaging was inspired by the IKEA early employee – a whim, he decided to table leg relieved, so that it can be mounted to the car, but also to avoid damage during transport. Since then, IKEA began to consider the tablet packaging problems in the design. The flat packaging to further reduce the price of the product. At the same time, Ikea began to form a pattern, that the problems into opportunities “. IKEA’s channel strategy is independent on open stores all over the world, the monopoly IKEA design their own products directly to consumers, the control terminal of the product sales channels.
IKEA in the global total of more than 180 chain stores in over 40 countries. With the general home market, IKEA allows consumers to experience deeply understand the pros of the product. The sofa and other furniture are in store trial. A variety of model should be at home, decoration, design reasonable, winning the praise of the majority of consumers. If the items are not damaged, but also can be returned unconditionally in 60 days , with fabric cutting and city delivery service at the same time. The rational design of shopping malls, restaurants and shopping, and is equipped with furniture since mentioning District, quick and easy to meet consumer needs. IKEA has always stressed that the products designed good looking, practical and durable. And at the same time IKEA reduce costs and improve efficiency. Make the price lower. So many advantages attract more and more customers get to Ikea shopping.See More on Containerization