What are IKEA’s best-kept secrets behind its smooth back-end operations and efficient supply chain processes?
The world’s largest home furnishing retailer has 298 stores in 37 countries. It ranks Number 41 on Forbes’ esteemed World’s Most Valuable Brands list and took in 35.5 billion in sales in 2013. IKEA has certainly come a long way in its 60 years of business since its 1943 founding in Sweden.
This organization impresses not just its consumers with affordable, high-quality furniture, but also competitors and companies around the world – especially with its unique supply chain and inventory management techniques.
Each IKEA store is huge and holds more than 9,500 products! How in the world does IKEA offer so much at such a low price while always being able to keep items in stock?
To start off, IKEA has a clear vision – to provide well-designed, functional home furnishings at prices so low that as many people as possible will be able to afford them. Its various functions (supply chain operations and inventory management included) work together to support its distinctive value proposition.
