In my opinion, a good example of management that shows the best logistics capabilities is a Swedish company IKEA. IKEA’s competitive advantage on the global market is very strong and unique. Business strategy of this Swedish company combines following goals: delivery of high quality products at the lowest possible prices, market expansion, social and environmental responsibility. Based on its core competences, IKEA makes an effort to ensure better life conditions for people. Crucial for IKEA’s business success is effective organisation of processes in supply chain. IKEA continuously reduces the environmental impact of the transportation of its products. IKEA’s aim is to create and maintain flexible transport solutions in order to meet all the service needs of customers in the most efficient and environmentally aware way. Wherever possible, IKEA uses railway and combined road-rail transport. Effective organisation of deliveries requires high filling rates. So, the most important purpose is the achievement of the critical mass for effectiveness of shipments. IKEA sources 17% of its furniture and home furnishing products from Poland and cooperates with about 80 Polish producers. The most important purpose is the effective organisation of shipments from Poland to distribution centres and stores. To achieve this goal IKEA implemented the project of the supply chain structure reconfiguration. New network design includes close cooperation with Polish suppliers. The chosen ones play the role of consolidation point in IKEA’s supply chain.
IKEA’s Supply Chain