Ikea was founded in 1943 and the companys´ priority was to offer a wide range of furniture at a low cost level to enable lots of people to buy stylish and high quality furniture.
The cost reduction was the beginning for all innovative decisions in the supply chain during the years. The key of success was the flat packing.
The idea was to reduce the air in the package, by that the volume which has to be transported and stored was reduced significantly and the costs were cut. To ensure the flat package, it must be possible to disassembled the furniture before packing.
Of course not every product can be disassembled and packed in flat manner, for those products it was necessary to stack them. By the stackable and flat packed products IKEA takes benefit in transportation and also in warehousing because of the minimized volume. Therefor the costs are quite low compared to competitors. This practice is used in IKEAS world wide supply chain which involves more than 1300 suppliers spread over 50 countries all over the world.
Due to that procedure IKEA is able to save not only costs, they also save an enormous amount of CO2-emissions.
Of course that´s only a part of IKEAS way of improving business, however it was an important change in manufacturing furniture.