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Collaborative Economy by Pilar Canales

Publicado por Blogistics17 octubre 27, 2017

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IKEA CASE: WAREHOUSE AND S TORE ARE ONE ENTITY Managing inventory cost-efficiently is key to optimize profits. We can observe some companies that perform better than others when it comes to storing management. It is interesting to analyze the case of Ikea, one of the largest furniture retailers worldwide. Ikea although storing a large quantity of products is able to offer high quality furniture at affordable prices. This is mainly due to its unique supply chain and inventory management techniques. Focusing on inventory management, warehouses and stores in Ikea are one entity. So consumers can observe the products in the showroom and then obtain the products themselves from the floor pallet location. Moreover, at the night the warehouse is replenished with the products sold during the day. Ikea follows an inventory strategy called: “cost-per touch”. This theory says that the less people touches the product the lower the costs incurred. So in this case, customers getting the f...

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