16. What's so special about IKEA products? Product range is extensive enough -to have something that appeals to everyone -to cover all functions in the home -the products are modern not trendy so they are practical enough for everyday use. Cost advantage -low price and yet good value for money. (excellent relationship with suppliers) - flat packed furniture cuts costs on transportation and assembly. Function -products are based on a functional approach to design. IKEA design means products that are attractive, practical and easy to use. -no fringes attached. -they give genuine solutions for specific home furnishing needs and are made of the most suitable materials for their purpose. The right quality -the quality of a product is appropriate for the intended use.
30. The Logistics Perspective The Logistics Manager and the Transport Manager run logistics audits of their suppliers together to identify bottlenecks and improve processes. In TA Poland there is a clear structural distinction between transport and logistics. The essential difference is that transport deals with the present and logistics deals with the future. The Logistics Manager focuses on continuous improvement and the progression of suppliers up the supplier ladder. He will search for new ideas to smooth the flow of goods through hub and spoke systems using best sources of rail or road options. Smart logistics at IKEA also includes a very rigorous analysis of the way products are packaged – in the famous flat-pack boxes – and then loaded into containers. Damage in transit is kept to a minimum by strict guidelines and templates for loading. Photographs of damage incidents are taken and lessons learnt and disseminated. It is not uncommon to see video cameras at IKEA suppliers’ factories monitoring the loading of containers (and ensuring that there is no smuggling of illegal cargoes out of Poland). The development of highly organised hub-and-spoke distribution systems allows minimum order quantities to be kept low. It is possible for a carton, rather than a pallet or a container, to be despatched from the factory to the distribution centre where loads are then consolidated before being transmitted as containers to destinations around the globe. Road € 19/m 3 to Sweden Faster Less Reliable Eco-unfriendly 80 m 3 capacity per lorry Rail € 9/m 3 to Sweden Slower More Reliable Eco-friendly 200 m 3 capacity per waggon
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