IKEA Logistics and Operation Management

Question: Discuss about the IKEA Logistics and Operation Management. Answer: Introduction IKEA is the largest retailers furniture manufacturer with approximately 315 stores in 27 countries. The company has positioned itself as high-quality furniture providing products at affordable price. IKEA vision is to create a better life for many people. The mission is caring the social responsibility by ensuring the wellbeing of the society. The business idea of IKEA is to offer a range of functional, affordable and well-designed products at lower prices. Due to the proper inventory techniques, efficient operation management, and strategic supply chain, the company can offer 9500 products to the consumer. IKEA has managed to research on market condition in China and United States. In the United States, IKEA focuses on providing secure products, lower prices and operating under economies of the scale. Operation and Logistics play an important tactic in the attainment of the raw material, production, and consumption(Hill Hill, 2012). IKEA has managed to employ logistics and management to propel products patterns of dissembling its units and transport in a flat package. Correlation of the Directorate, suppliers, warehouse operation and store design assist in achieving corporate strategy and business model of logistics. Operation strategy of IKEA is to offer durable, quality and affordable product to their user. India with economic volatility, providing the self assembling product will enhance economies of scale and maintains high volumes of production(Czinkota, Ronkainen, Moffett, Marinova, Marinov, 2009). IKEA design warehouse in a sense that there are showroom and marketplace. Thus, allowing assessment of large stock of the products in a day. In the case of defects, IKEA sells the products at significant discount. Logistic and management of IKEA communicates the policies issues relating to the environment. IKEA make customers time as part of the operation management through the physical distribution and designing facilities. Logical process and operation management Flow diagram: operation management (Chopra Meindl, 2016). Supplier: at this stage, focuses on the designing of the product at a lower cost. Distribution: There are two parts in the IKEA store. Open hall shows the quality, lower price, and function of the product. IKEA operation does not have shop attendant, thus reduces the operating cost. Additionally, after customer purchase the product, they cater the cost in term of the transport; reduce the operating cost further. In delivery process, factory transport product to the distribution stores globally(Mangan, Lalwani, Lalwani, 2016). In case a customer purchase the product, the data will be sent to the respective distribution Centre and then to a common area for interpretation. There is scanning of the merchandise and then store information to the database. Software inventory services allow checking how consumers gets product at convenient time. In the transit delivery process, products are produced by two different factories (Chopra Meindl, 2016). Therefore, products are taken to one distribution center where assembling takes place, and storage. IKEA uses the customers influence, intangible, heterogeneity and labor intensity as the core aspects of the operation management. Conclusion Apparently, process and logistics management forms the integral parts in the activities of IKEA. Therefore, with the market share, profitability and customer integration idea can take advantages of the capabilities and supply chain to enhance company performance. References Chopra, S., Meindl, P. (2016). Supply chain management: Strategy, planning, and operation. Boston: Pearson. Czinkota, M., Ronkainen, I., Moffett, M., Marinova, S., Marinov, M. (2009). International business. Wiley. Hill, A., Hill, T. (2012). Operations management. Palgrave Macmillan. Mangan, J., Lalwani, C., Lalwani, C. (2016). Global logistics and supply chain management. John Wiley Sons.