IKEA Increases Product Availability and Lowers Shipping Costs with Centralized Shipping Solution
 
 

IKEA Increases Product Availability and Lowers Shipping Costs with Centralized Shipping Solution

  • Oracle Customer:  IKEA
    Location:  Almhult, Sweden
    Industry:  Retail
    Employees:  127,000
    Annual Revenue:  Over $5 Billion

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IKEA offers a wide range of well-designed, functional home furnishings at affordable price points to stimulate customer demand and mass-appeal. To support a large customer base, IKEA’s supply chain consists of 1,100 suppliers in 55 countries, with purchasing offices in 25 countries, and distribution centers in 16 countries. At the retail level, IKEA operates 280 stores in 26 countries, utilizing more than 300 service providers.

 
 

 
 

Challenges

A word from IKEA

  • “Logistics performance is a vital part of IKEA’s main goals—to provide well-designed, functional home-furnishing products of good quality, available when the customer wants it, and produced under good conditions at the lowest possible cost. Oracle Transportation Management supports this effort by enabling us to increase product availability while lowering logistics costs.” – Kim Lönskov, Process Leader, “Plan & Manage Delivery”, IKEA

  • Enable more efficient planning and execution of inventory deliveries to increase in-store product availability and lower logistics costs
  • Improve visibility of in-transit product shipments to provide better customer service with more real-time shipping updates, and enable the company to respond more quickly to shipping disruptions
  • Standardize and improve transportation processes by utilizing a single platform solution across all suppliers and distribution centers for increased supply chain efficiency

Solutions

Oracle Product and Services

  • Implemented Oracle Transportation Management to support more centralized delivery planning for products across suppliers, purchasing offices, and distribution centers
  • Optimized product shipments with increased customer service levels and reduced logistics costs, decreasing both transportation spending and CO2 emissions
  • Implemented transportation planning and execution from an end-to-end supply chain perspective, from first sender to final receiver, improving visibility and providing better, more up-to-date shipment information to customers
  • Reduced shipment disruptions with an exception-based workflow, providing for rapid detection and action
  • Improved supply chain execution processes to support future growth and continuous supply chain efficiency