The Replenishment Cycle Of IKEA

b)Replenishment cycle

Companies will face two strategic decisions in supply chain,It could be concluded as lead times and inventory levels. There are 4 different kinds of integration to response speed and lower inventory costs. They are the level of integration, capability of integration of supply chain planning, forecasting and replenishment. Let us talk something with the replenishment cycle of IKEA in this part.

IKEA is the world's largest home furnishings retailer: The company has a high vision which is "well-designed, practical household goods prices so low, as many people might be reliable, to get them." The vision has gathered more and more people to believe this brand. They think different from their peers, which is difficult for their

Most of the furniture is designed for customer assembly, it is also designed to be loaded into a cost-efficient packaging cube transport, conveniently to their customers and IKEA. The company is a very high volume retailers, so they often gets good prices what manufacturer procures. This allows the company to maintain the competitiveness of other retailers in the industry, because it continually seeking ways to simplify well supply chain and inventory management prices.

High SKU velocity DCs use AS/RS

IKEA store business from high-traffic facilities (focused on the 20 percent of SKUs that account for 80 percent of the volume) and low flow is more manual for warehouse support. Let the customer retrieve the package project on their own is a inventory strategy called "cost per touch." The company found that more hands touch the product, more costs associate with it. Thus, in its high liquidity warehouse, IKEA uses automatic storage and retrieval system (AS / RS), in order to reduce its cost per touch.

Logistics personal work in

The scope of the business makes this a difficult assignment. Ikea produces periodicals in print and online. Such as 'People and the Environment', and carries out key TV programs and radio propaganda to enable the business to connect with different target groups.

CONCLUSION

In this report, we describe the application of Swedish IKEA supply chain management. What is important is to emphasize different aspects of supply chain management, and IKEA how to add its value and reduce costs, as well as in management strategy. Logistics has become significantly more global enterprise in order to meet the needs of customers around the world.

IKEA effective and efficient operation of the process, by the high level, where the control and analysis of business processes created successful management. In the company's internal policies designed to control pricing approach, quality, logistics and suppliers. With suppliers long-lasting partnership is mutually valuable aspect. There are 4 key elements of these relationships: communication, cooperation, coordination and interaction. Without these elements would be difficult to cope with the procurement of such a large network. IKEA also follow the development trend of the market, according to company needed to make progress. Therefore, it is possible to give the money paid by consumers which are valuable for their products, and