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8/14/2019 Group 9b Ikea
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Democratic design: Low price with Meaning
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The IKEA story began in 1943 in the small
village of Agunnaryd in Sweden
Founded by Ingvar Kamprad at age of 17
We think creatively to make innovative,
affordable products
IKEA offers a wide range of well-designed,
functional home furnishing products at prices so
low that many people can afford them
IntroductionIntroduction
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Founder of IKEA, Ingvar Kamprad is born
Ingvar Kamprad, founded IKEA at age of 17 in Sweden
Production of first IKEA Catalogue in 1951
First IKEA store outside Sweden in Norway and Denmark
First IKEA store outside Scandavian country in Switzerland
USA & UK stores opened. IKEA won best Swedish Design Award
Stores opened in Hungary,Poland,UAE,Spain and China
Stores opened in Russia,Japan.By reducing its large size trucks IKEA
has reduced Carbon dioxide emissions
1920s
1960s
1950s
1940s
1970s
1980s
1990s
2000s
TimelineTimeline
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127,800 employees
296 IKEA stores in 36 countries/ territories.
27 distribution centers and 11 customer
distribution centers in 16 countries. 41 trading service offices in 30 countries
1,380 suppliers in 54 countries.
Purchases most of its suppliesfrom Europe
90-99% availability
9,500 products
IKEA FactsIKEA Facts
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Top five sales countriesGermany 15%
USA 10%
France 10%
United Kingdom 7%
Sweden 6%
Top five purchasing countriesChina 21%
Poland 17%
Italy 8%
Sweden 6%
Germany 6%
StatisticsStatistics
Revenues in billion EURO
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Design the price tag first
See things differently
Flat packing saves shipping cost
Responsibility
Business IdeaBusiness Idea
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Warehouse attached to their retail stores
Flat pack transportation
DIY concept The customers pick up most items in the
warehouse by themselves.
Customers transport the items back to their
home.
Customers self assemble the furniture.
IKEA InnovationIKEA Innovation
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IKEA of Sweden
Headquarters, design
& marketing
Trading Areas
Purchasing, logistics &
supplier support
DistributionRetail
IKEA StructureIKEA Structure
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The Trading Areas will cooperate with
manufacturers to supply products at the best
possible price.
Lowest landed price at IKEA stores (cost of
materials, processing and logistics)
Suppliers are located in low cost regions.
IKEA logistics experts assist supplierswith advice on packaging, transportation,
IT etc to make continuous improvement to
reduce prices and decrease lead time
Purchasing & LogisticsPurchasing & Logistics
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Supplier SupportSupplier Support
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SupplierManufacturer
Distribution Centers
Retail OutletsCustomers
Supplier
SupplierManufacturer
VMI
Inventory FlowInventory Flow
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Success FactorsSuccess Factors
Packaging and Designing-Packaging and Designing-Smaller packaging allows the customerto transport purchased product in their own vehicle.
Strategic Manufacturing-Strategic Manufacturing- IKEA manufactures product all over theworld with 31% of their products manufactured in low cost
environments in Asia.
Collaboration with Suppliers-Collaboration with Suppliers-IKEA works in close partnership
with its suppliers and has helped suppliers to understand how and
why creating a sustainable production is important
Cargo transportation-Cargo transportation-Packaging is designed to maximize thecube of ocean containers and domestic over-the-road trailers. This
allows IKEA to ship more units at a time which has direct impact in
the reduction of their overall landed costs
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You do half, we do half together we
save money - self service & self assemble
Layout and service in the stores is
outward, customer-facing.
Shorter lead time from the suppliers
Provides catalogue and home delivery Cost savings accrued from long-term
supplier relationships
Vendor Managed Inventory (VMI)
AdvantagesAdvantages
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Good quality of products - match up to thecustomers expectations
Sells the same furniture all over the world-economies of scale
Educated suppliers understand thatsustainable production is vital
Being considered a responsiblecompany by both suppliers andconsumers.
AdvantagesAdvantages
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Supply chain is heavily dependent on forecast.
Some regions purposely overestimate demand
to ensure delivery, which creates an imbalance
in terms of demand coverage Occasional incoherence among different entities
of the supply chain
Hard to change mindsets among users
DisadvantagesDisadvantages
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http://www.3plwire.com/2005/09/30/ikea-logistics/
http://www.thetimes100.co.uk/case-study--building-sustai
www.ikea.com/
ReferencesReferences
http://www.3plwire.com/2005/09/30/ikea-logistics/http://www.thetimes100.co.uk/case-study--building-sustainable-supply-chain--110-279-2.phphttp://www.ikea.com/http://www.ikea.com/http://www.thetimes100.co.uk/case-study--building-sustainable-supply-chain--110-279-2.phphttp://www.3plwire.com/2005/09/30/ikea-logistics/8/14/2019 Group 9b Ikea
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Nitin Nagpal GAPR09IT184
Rashmi Reddy GAPR09IT194
Saurav Agarwal GAPR09IBWM168
Subrat Nanda GAPR09IBWM153
Thank YouThank You