IKEA's major outputs of order management, how they are measured, and how their financial impacts on buyers and sellers are calculated
IKEA's major outputs of order management, how they are measured, and how their financial impacts on buyers and sellers are calculated
IKEA is a Swedish-founded multinational company,which designs and sell ready-to-assemble furniture and home accessories.It has been the world's largest furniture retailer since at least 2008.It was founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad when he got a financial gift from his father as he scored good marks in studies.He use to ship his companies furniture on the Milk trucks to make sustainable supply of the goods. Later he tied up with local manufactures and sells their products in the market on his name. Later he moved to Denmark with his company to save taxes.
IKEA has its Headquarters in Netherlands but its heart is still in Almhult, Sweden called the IOS (Ikea of Sweden).
IKEA is an acronym for Ingvar Kamprad Elmtaryd Agunnaryd.
- Ingvar Kamprad is the founder of IKEA back in 1943.
- Elmtaryd is the farmland where he grew up as a kid.
- Agunnaryd is his hometown in Smaland, Sweden.
The order management process begins when an order is placed, and ends when the customer receives their package.In whole process Ikea tries to save money and which makes it more cost efficient from another furniture stores
* IKEA manufacturing and shipment costs are quite low because its furniture and home accessories are made of recycled and sustainable materials.
*One of the most advance strategy used by Ikea is that the furniture is sold in pieces, which are placed into convenient, flat packages. As a result, IKEA saves on transportation and fulfillment because the pieces take up less room in trucks.
*IKEA hires in-store logistics managers who are responsible for all inventory-related processes, such as monitoring deliveries, sorting and separating goods, and directing them to the correct locations.
* With more than 9,500 products in stock the store and warehouse will be the same building saves cost of warehousing and Transportation cost
*There is an in-store logistics manager responsible for the ordering process and a store goods manager responsible for material handling logistics at all IKEA stores.
*In Ikea the staff can set up both the minimum number of products available before reordering, and maximum number of a specific product to order at one time. This strategy also ensures that IKEA has inventory ready to meet customers’ demands, lowering the cost of lost sales.
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