J O S H STA N D I F E R
JESSE FENTON
ANGELA SNIPES
CARLOS VELASQUEZ
OVERVIEW
Background
Big Problem Statement
Issues
Perspectives
Knowledge / SWOT
Actions / Consequences
References
Questions
BACKGROUND
• Founded 1933 by Ingvar Kamprad
- Started as a mail order catalog
- 338 total stores in 40 countries
- 33 Global Distribution Centers
- 6 North America
- 13 stores opened during 2012
- 776 million visits to IKEA stores worldwide
during FY’12
- 1.1 billion website visits during FY’12
- 212 million copies of the IKEA catalog
were distributed worldwide last year
PROBLEM
The IKEA Distribution Center in Pooler, GA is
state of the art. We feel that it could be even
more efficient than it already is by
implementing RFID (Radio Frequency
Identification) technology and by upgrading the
warehouse technology.
ISSUES
The new RFID technology and updated
warehouse technology system will be costly up
front.
There will be employees that will not be happy
about having to learn something new or
change.
SWOT MATRIX
IKEA Strategy Map
Technological
Infrastructure
Mission: To provide alternatives for IKEA warehouse technology
Vision:
To enhance business continuity and provide a disaster recovery plan for warehousing technology
We will pursue our mission and vision through a focus on Quality, Safety and Value
Service Excellence
Customer Location Excellence
Easing the exchange of
information from the customer to
the company
Management Excellence
Logistical transparency
More accurate forecasting
Measurements
Leading – Can IKEA new technology
prepare the company for better order
tracking.
Lagging – How many customers
demand order tracking?
Training and
Development
Prepare the management to
overcome resistance to change,
from lower level employees
Expanding employee
knowledge on technological
acquisitions
Training local employees on silo
maintenance technology
Educating, Training & Developing current employees on the new technology
Financial
Analysis
To improve profitability and reduce costs while adding value so that the majority of consumers
can purchase our product at lower prices.
Decrease in expense of
hiring/training workers
Customer service
efficiency
Reduction in cost of
maintenance by training
employees
Increasing profitability through
supply chain efficiency
Increasing visibility between the customer and the company with technological
advancements
RFID implementation
Local silo replacements
Customer/User interface
enhancements
Measurements
Leading – Does the training of
employees to new technology
make IKEA more profitable?
Lagging – How does Training
help employees adapt to new
technology ?
Measurements
Leading – Does the new
technology provide cheaper
alternatives for warehouse’s.
Lagging – How much is
profitability reduction cost ?
Measurements
Leading Indicators –
Customers want to track
orders
Lagging – What is customer
response after new
technology has been
implemented?
ACTIONS
JAAC Consultants recommends that IKEA let them do a
financial analysis on the short term and long term
cost and profit analysis. We believe that by
implementing the RFID technology and integrating the
SILO technology with the RFID and the customer user
interface, we can not only lower IKEA’s operating cost,
but we can also provide better customer service. With
RFID technology we will always know where a package
or a pallet is.
QUESTIONS?