Supply Chain Management in IKEA

Supply chain management

Table of Contents
INTRODUCTION...........................................................................................................................1
Supply Chain Management In IKEA ..............................................................................................1
Customer’s service and inventory ..............................................................................................1
Transportation.............................................................................................................................2
Warehouse and capacity management........................................................................................3
competitive advantages. .............................................................................................................3
Critical issues emerging in IKEA ..............................................................................................5
Way to respond to emerging issues.............................................................................................6
Finding and suggestions..............................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Every successful business have ensures that its offering should reach to the market at
right time and at right quantity so that value for customers could be increase on constant basis.
Supply chain management is define as the flow of goods and services along with the all the
procedures that are utilised for transferring products from the place of production to the final
customers. This is associated with the streamlining and organising all the activities that are
related to supply of products and service which allow company to enhance customer's value
along with the build strong competitive advantage within market place(Chase, Shankar, and
Jacobs, 2018). It provides support to the company in increase its profit and longer sustainability
through making access of the products to the customers in way which generates higher revenue
for the company. A manager of supply chain has been consisting of the responsibility to manage
and coordinated all the logistic of supply chain that is associated with strategic planning,
sourcing of raw material and manufacturing and delivery of products to the customer. This report
is based on the IKEA which is an Swedish based multinational conglomerate company which is
specialise in designing and selling read to assemble furniture. The below is consist of the
analysis of how logistics and supply chain management is conceived, support deliver and
developed within the organisation. Moreover this also includes the concept and models for
supply chain management and relevant management.
MAIN BODY
TASK 1
Supply Chain Management In IKEA
Customer’s service and inventory
Customer serviced is refers to the act which is undertaken by the company in order
provide support to potential and existing customers. It involves face to face and telephonic
conversation by the respective of the company which solve queries of customer on behalf of
entity. This is one of the key factor that is used by company to satisfy customer their queries
along with this, it also an mechanism of taking feedbacks so that products and services could be
improved as per their needs and requirements(Kshetri, 2018). With support of such initiatives
company will ensures higher customer's satisfaction so that they will engaged with firm for
longer period of time. As it is associated with providing assistance to people that are being
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buying products and services from company and fulfil their demand. For the good reputation and
brand image it is necessary for the company to strengthen its customers service department with
hep of formulation of effective strategies and approaches.
Inventory management is refers to the step in supply chain which is an systematic approach of
ordering, storing and utilising inventory for better products and services. This is concerned with
management of raw material and its components, finished goods, warehousing and products of
the items. Meeting needs and requirement of the customer is the basic mission of the company
and in this inventory management play vital role as this has been balancing product availability
against anticipated market demand. There are several methods and techniques which are used by
the company for inventory management and some of them are discussed below:
Just-in -time inventory management: This is one of the great way to reduce inventory
cost, as in this company has been receive the inventor on time when it is needed rather ordering
too much in advance(Tiwari, Wee, and Daryanto, 2018). This eliminates the risk of dead stock
that cannot be sold or used by customers.
Economic order quantity: This is define as the formula that is used for ordering quantity
of inventory with the set of variables like total cost, demand rate etc.
Transportation
Transportation is define as the mode of delivery which is undertaken by the company in
order to transfer their goods from the place of production to market for the purpose of sale. it is
also refers to the only source for delivering offering to the potential customers in return of
generating higher profit. The cost which is involve in the transportation is also include by the
company in price of products and services which are required to paid by customers(D'Eusanio,
Zamagni, and Petti, 2019). There are various option that can be chosen by the company for the
transportation such as road, railway, sea ways etc. in this IKEA has chooses the railway
transportation mode for transferring goods from manufacturing factory to it physical stores that
finally deliver to customers at market place. The main aim behind choosing this transportation
mode is to reducing, replacing and rethinking a great agenda in the company's principles and
policies(Russell and Taylor, 2019). IKEA has been contentiously trying to reduce the usage as
high as possible in order to decrease the negative impact of pollution on environment. IKEA
Company motive is restore fossil fuels for the sustainability of environment along with reducing
carbon emission in air which induce from airways transportation. This company as been aims to
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