IKEA’s Prominent Supply Chain Management Ideas

Timea    February 26, 2018

IKEA has a reputation of creating functional, modern, quality and affordable products. Products offered are available for any part of a home from bathroom, living room, bed room to kitchen and more. They not only offer furniture but they also offer accessories to compliment any room in any home.

IKEA is a Swedish-founded Dutch-based company that has 355 in 29 countries. The popular furniture store has a vision “to create a better everyday like for the many people”. Some of the key factors that contribute to IKEA’s successful supply management is their affordability, quality and availability.

Cost is a very important factor to every consumer. IKEA is well known for its affordability and cost effective products.  At IKEA they claim to decide on a price first then they create the product. The production process also includes waste management and product transportation. http://bit.ly/2oDdp3A This process has helped them be known for their affordable and quality products.

Quality is also a very important factor for IKEA’s product development and design. Not only do customers have the opportunity to assemble their own furniture but they already know the quality of the product because they have seen it in store or had the opportunity to see reviews online before purchasing. IKEA also takes responsibility for the environment and its suppliers. http://bit.ly/2oDdp3A

It is important for the designers of each product to be included in the development process of the product. With designers being involved in each stage of development the products will be completed with the imagined end result. This type of planning prevents material waste, material management but creates overall product success.

The fact that IKEA has 355 stores in the world proves their overall success but they have also come up with an idea to better their availability by creating Store Pickup and Order locations. Ontario, Canada now has 6 Pick Up and Order Points which helps with availability and consumer motivation. These Pick Up Stores are open 7 days a week with convenient store hours. There are a couple steps to take before picking up a product, which include bringing a piece of ID and a confirmation email. A flat rate of $20.00 is also to be expected that covers the delivery charge of any item ordered. http://bit.ly/2CmQp1L

If a customer has a question about a product whether it is in store or online IKEA has provided available customer support in both environments. IKEA has a Twitter account available for any type of customer support inquires, such as availability, material or safety concerns. Even if a customer wants to know the price of any product it is displayed on their website. Not all websites nowadays promote their prices because they may not be as confident with their competitive pricing.

Lessons for Others

Overall, IKEA has a great knowledge on the importance of supply chain management. Keys factors that assist IKEA with successful chain management is cost, quality and product availability. Companies looking to be successful should consider and implement these following factors to develop and maintain successful products and future brand awareness.

Cost: Providing products that are cost efficient for all types of customers. IKEA often advertises their pricing through their website, social media such as twitter or by promoting through TV commercials. Competitive pricing will allow the company to be on top of any consumers mind.

Quality: Creating products that are made of quality materials that go through a detailed development plan. IKEA establishes a development plan before anything is produced. This prevents any loss of materials, costs or time.

Speed and Availability: Ensuring their products and services are always up to date will encourage consumers to continue buying the product. IKEA promotes their annual catalogue to show their customers that they have thousands of new items every year. Again, they provide availability through smart phone apps, websites, TV as well as social media. Creating new products will continue to assure their customers that they can trust the company that strives to create new and advanced products.

Organization: IKEA
Industry: Furniture Retailer
Name of Organization Contact: Contact Unavailable At This Time

Authored by: Timea J

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