IKEA Master file
Table of Contents
Inventory Management 2
Demand Forecasting 6
Procurement 7
Transportation 10
Customer Service 12
Performance Management 13
Technology 15
References 17
INVENTORY MANAGEMENT
Inventory management is an important part of logistics at IKEA as the company has more than 11,000 articles. The Store Logistics Manager is accountable for ensuring adherence to inventory routines and more specifically, the Sales and Supply Support Manager and the Goods Flow Manager are responsible for their implementation. Merchandise Handling System (MHS) is one of the tools for inventory management used by the logistics team. MHS is the biggest and the central system to all business areas within IKEA. It provides functionality for booking orders, customer returns and recovery, stock replenishment, sales forecasting, warehouse management, cash management and sales statistics. MHS spans over 300 IKEA stores with 75000+ users around the world. The Inventory Types can be categorized into 4 main areas: Spot Inventory, Storage Location Correction, Cyclical Inventory and Annual Inventory.
Spot Inventory. This inventory type is used continuously throughout the year to correct the Base on Hand figures. The aim of this inventory type is to show a correct value in units at all times.The spot inventory is the main instrument to maintain an accurate MHS stock balance and identify any problems with any stock affecting routines used in the store. The purpose of using this inventory procedure is to ensure data quality in the store and improve service level to the customers.
There is an evening calculates all total figures for the day (ex. sales, returns) on daily basis. Since the Base on Hand figures are updated during the evening batch, the best time to complete a spot inventory is after the evening batch has run and before store opening, usually it happens at 3am. Thus, every night a group of people, called counters, count certain number of articles. Counters are
Inventory Management 2
Demand Forecasting 6
Procurement 7
Transportation 10
Customer Service 12
Performance Management 13
Technology 15
References 17
INVENTORY MANAGEMENT
Inventory management is an important part of logistics at IKEA as the company has more than 11,000 articles. The Store Logistics Manager is accountable for ensuring adherence to inventory routines and more specifically, the Sales and Supply Support Manager and the Goods Flow Manager are responsible for their implementation. Merchandise Handling System (MHS) is one of the tools for inventory management used by the logistics team. MHS is the biggest and the central system to all business areas within IKEA. It provides functionality for booking orders, customer returns and recovery, stock replenishment, sales forecasting, warehouse management, cash management and sales statistics. MHS spans over 300 IKEA stores with 75000+ users around the world. The Inventory Types can be categorized into 4 main areas: Spot Inventory, Storage Location Correction, Cyclical Inventory and Annual Inventory.
Spot Inventory. This inventory type is used continuously throughout the year to correct the Base on Hand figures. The aim of this inventory type is to show a correct value in units at all times.The spot inventory is the main instrument to maintain an accurate MHS stock balance and identify any problems with any stock affecting routines used in the store. The purpose of using this inventory procedure is to ensure data quality in the store and improve service level to the customers.
There is an evening calculates all total figures for the day (ex. sales, returns) on daily basis. Since the Base on Hand figures are updated during the evening batch, the best time to complete a spot inventory is after the evening batch has run and before store opening, usually it happens at 3am. Thus, every night a group of people, called counters, count certain number of articles. Counters are
References: Lu, C. (2014, 04 23). Tradegecko - Inventory Managment. Retrieved 11 15, 2014, from http://blog.tradegecko.com/ikeas-inventory-management-strategy-ikea/ Zaulich, M. D. (2011). Forecasting System at IKEA Jonkoping. Jonkoping International Biusiness School. Jonkoping: Jonkoing University. Retrieved from http://www.diva-portal.org/smash/get/diva2:437863/FULLTEXT01.pdf Alexandra Waluszewski, E. B. (2003). Information technology at IKEA: an ‘‘open sesame’’ solution or just another type of facility? Journal of Business Research, 10. IKEA Systems. (2014). Specialists in customer satisfaction. Retrieved from Specialists in customer satisfaction: http://www.ikea.com/ms/en_US/the_ikea_story/working_at_ikea/work_areas_customer_relations.html IKEA Systems B.V. (2014). Welcome to IKEA Customer Service. Retrieved from http://www.ikea.com/: http://www.ikea.com/ms/en_AU/customer_service/ IKEAFANS. (2010, July 14). How Technology Could Solve One of IKEA’s Worst Customer Service Issues. Retrieved from www.ikeafans.com: http://www.ikeafans.com/home/isell-itower-ikea-customer-order-system/ Inter IKEA Systems B.V. (2014). Information technology (IT). Retrieved from www.ikea.com: http://www.ikea.com/ms/en_CA/the_ikea_story/working_at_ikea/work_areas_it.html International Journal of Scientific & Engineering Research. (2014, January). Improving Customers Service at IKEA Using Six Sigma Methodology. Retrieved from http://www.ijser.org/: http://www.ijser.org/researchpaper%5CImproving-Customers-Service-at-IKEA-Using-Six-Sigma-Methodology.pdf Lee, S. (2007, October 15). KEA: A Branded Experience Is More Important Than Customer-Centricity. Retrieved from http://customerthink.com/: http://customerthink.com/ikea_branded_experience_important/ Sharma, G. (2013, January 09). Operations Strategy. Retrieved from Ikea operational strategies: http://www.slideshare.net/GaganSharma3/ikea-operational-startegies