Case Study Q1. What are the challenges faced by IKEA in the given Case Study?

Ans: Challenges faced by IKEA are as follows Packing Design: Low valued goods use of excess space on load units due to packaging design. Products like large pillows, mattresses, sofas etc are filled up with air and they take up unnecessary space during transportation and storage. Transportation: Packing design has led to inefficiency in transportation. Inadequate space in the vehicles due to the packing design has led to the need for having more and more vehicles for transportation operation which simply adds up to the costs Warehouse Operations: Handling and warehouse operations for storage has also had similar issues due to inadequate space which simply added up the cost Environmental Impact: Too many vehicles are used for transport operation which can have adverse effects on the environment in the form of pollutions. Product design linked with Package design: Any changes that need to be made to the package design inturn leads to the change in the product design as the product features are adapted to the packaging design

Q2. What are the strategic implementers used by IKEA? Ans: The strategic implementers used by IKEA are as follows: New packaging method: Excessive air in the packaging is removed by placing the products in such a way the density of the product package increases. Excessive air is removed to increase the utilization Cluster supplier concept: Increasing the density of package leads to the increase in weight per pallet which can overload on the capacity of the vehicle. During this time supplier concept is used to balance the load on the trucks by using lightweight products to fill up the left over space. The cluster supplier concept is based on a solution where a major supplier of IKEA takes responsibility for storing goods from the other suppliers for later consolidation with its own goods when orders are despatched to central distribution centres and warehouses in different countries.

Q3. Explain the lessons learnt and success factors for IKEA. Ans: Lessons Learnt Packaging is equally important as a product design hence every aspect of packaging need to be looked forth. Maximise the utilisation as it simply adds up to the overall costs in handling, warehouse operations, excessive transport vehicles. Environment should not be taken lightly as it can cause a lot of adverse effects in the form of pollutions which pose restrictions on the company by the government etc.

Success factors Improved Utilisation: Despite of the issues in packaging design, IKEA was able to solve this problem by initiating new packaging design which led to the decrease in the transport work and costs. Minimized costs and initiation of new packaging led to improved warehouse and transportation operations Quality has increased with an initiation of changes made by IKEA Environmental impacts has reduced.

Q4. What are the Sustainability product/transferability benefits?

Economic,

Environmental,

Social

and