Posted by: mgeps | May 14, 2010

Class V – Rosa Ruiz presentation on IKEA Distribution network design

Today our colleague Rosa Ruiz made a brilliant and interesting presentation on the IKEA distribution network design case.

Here is a link to her work:

The teacher then remarked the following facts:

  • is a huge company with a huge distribution network
  • 296 stores with 27 distribution centers, which means a ratio of approx 11 stores per distribution center, while for example Mercadona have approx 200. The ratio is highly dependant on the Product commercialized
  • 9500 products portfolio (almost the same of Marcadona), most of them produced in Europe
  • Products are directly delivered form the suppliers to the stores in order to reduce costs
  • and as we all know they’re speciaized in the best practice in packaging to save space and reduce costs
  • products have to be self assemblied; IKEA products are the easiest to assembly

And to conclude just to say what we have all experienced while visiting IKEA, and on what I’ve saw myself reflected when the teacher has explained it the class. The states of animum that you pass trough while walking on the IKEA long corridors that drive you from the entrance until the warehouse, where all the products are recollect, and the cash.

You enter happy with your couple and with a linemeter in your hands. Start measuring and want to buy all the wonderful products that they have. You keep on walking trough the corridors, while your girlfriend is looking at all the things sshe may buy and you start thinking on your poor credit card and at when it would be switched. You keep walking and a bit tired you go down the stairs and arrive at the gadget area where your girlfriend, which at this point really want to buy something, to notice something in her hands, shows clear signals home-gadgets illness and start buying as many thing as she can.

You keep walking and with plenty of things you arrive at the warehouse and start picking up what you signed on your paper, go to the cash, and is when the cashiers tell you the counts. Andhere is when you start thinking:  “why did I come here?!!!”

You’ve just spend a lot of money and have just carton packs into your hads, that must fit into your car and once back at home you will have to assembly them…but you look at your girlfiend and the smile on her face pay-off..and you start thinking on how beatiful will be your home ad how much you will have payed by goig into another furniture shop. And at the END dear teacher, this is also in my opinion the ESSENCE of IKEA.

Following a nice funny video in spanish which resumes (more or less) what said above:

But also the interesting video saw in class on the IKEA flat pack warehouse:

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