IKEA, The Swedish furniture giant has developed a logistics strategy that has allowed it to stand out in a highly competitive global market.
And through the innovation, sustainability and a special focus on operational efficiencythe company, has optimized its supply chain to meet contemporary challenges and improve customer experience.
IKEA’s key logistics strategies
The company has its own network of strategically located distribution centers, which allows it to control the flow of goods and optimize transportation routes, and implements sophisticated management systems.
Innovation in the supply chain
The company has implemented several innovations to optimize its supply chain. One of the main strategies is the use of its proprietary tool called “e-wheel”which evaluates the environmental impact of products in five stages of the life cycle:
- Raw Materials
- Manufacturing,
- Distribution
- Consumer use
- End of life
This tool helps IKEA design products with a focus on sustainability and waste reduction.
Efficient inventory management
To avoid waste and inefficient costs, the company employs minimum and maximum settings in its inventory management. This method ensures that there is always enough stock to meet demand without surpluses taking up valuable warehouse space.
Furthermore, the self-service model and characteristic flat packaging They are one of the fundamental pillars of logistical success.
Although the most significant strategy is tied to the distinctive characteristic of the brand: IKEA furniture is designed to be disassembled and packed in compact boxes, significantly reducing the volume of transportation and storage.
This particular strategy allows them to not only optimize space in warehouses and trucks, but also minimizes transportation and packaging costs, contributing to the affordable prices that characterize the brand.
Sustainability in logistics
IKEA has made a firm commitment to sustainability in its supply chain, seeking to reduce its carbon footprint by 70% in all its transport operations by 2030, among the specific actions are:
- It has begun to use electric trucks and biofuels
- It has implemented rail routes from Asia Pacific to Europe to minimize the environmental impact of its logistics operations.
This responsible approach not only contributes to a greener planet, but also strengthens the brand image and attracts environmentally conscious consumers.
