group 9b ikea

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/


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Nitin Nagpal GAPR09IT184

Rashmi Reddy GAPR09IT194

Saurav Agarwal GAPR09IBWM168

Subrat Nanda GAPR09IBWM153

Thank YouThank You

group 9b ikea

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