Ikea and Logistics

Ikea is one of the best companies in relation with the logistics área, so now I would like talk about his competitive advantages.

  •  Packaging
    • Flat package, this type of package help to reduce his holding cost and also the transport cost (They have more capacity and eassy transport).
    • Ikea uses a really Smart and effiency machine to the packaging, before that, they used people who could package 20 products per hour but now the machine could package 720 products per hour, independency about his size and form, neither the machine has holidays and could work 24 hours and 7 days on a week.
  • Shop-Storage
    • Shopp, in the first part they have expose the product that they want to sell, this is like a road and you have a lot of products and ideas.
    • Storage, at the end of that road you arrive to the storage where you can take whatever product that you have seen before. (It type of shops and storage help to the Company to reduce the holding cost).
  • Know how
    • Designers, all the employees know the necesity to do the product in flat package, because if not have this type the product don’t go to the production chain.
    • Clients, they acept the shops-storage and if Ikea has low Price, they can assemble the product.
  • Environmentally friendly
    • •They always recycle the carton, the wood and the plastic and reuse that.
    • Also Ikea has created new pallet of cardboard that is much more environmentally friendly and reducing costs, space and weigh.

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