In every field, there are companies that set the bar so high in terms of innovations that other companies have little choice but to try to follow their lead. When it comes to the logistics chain, Ikea is one such company.
Last August, the Swedish company consisted of 315 shops in 27 different countries. If you've ever been to one of its shops - who hasn't? - you know how big to be: each shop covers an average of 30,000 square metres: almost the size of five football fields. Still not impressed? On average, shops stock 10,000 different pieces of furniture, from beds to sofas and crockery to art.
Underlying its success is Ikea's control over its own logistics chain. But how does Ikea ensure time and again that everything is spot on? Here are four reasons every company could take a leaf out of the Swedish furniture giant's book.
Constant focus on packaging
Ikea is constantly keen to sell as little air as possible. Time and again, packaging is revamped to take up as little space as possible. Not only convenient for consumers coming to the shop in their regular cars, but also in the logistics process. The chain's motto is not for nothing 'We hate air'.
A good example was spotted by US business magazine Forbes. Ikea reportedly decided in 2012 to tackle the packaging of its Glimma candles. A relatively small product compared to other items found in the shop. But this small change allowed 40 per cent more products to fit on a pallet, which translated into a 21 per cent reduction in carbon emissions. So small changes can have big consequences, Ikea realises this better than anyone.
Focus on sustainability
Ikea shows in terms of innovation that it dares to break existing patterns. A change a few years back was a clear example of this: the company replaced its wooden pallets with plastic variants made of polypropylene, which not only has the example that the new pallets are a lot cheaper, they are also 100 per cent sustainable. Sustainability is a factor Ikea is betting big on, and the company is taking responsibility for its burden on the environment through changes like this.
Good relationships with suppliers
Despite the fact that Ikea naturally tries to command the best prices from its suppliers just like any big retailer, the company also tries to build strong relationships with its suppliers by explaining to them the Ikeay Way Policy (IWAY). This policy outlines what the company expects from their suppliers in terms of child labour, emissions and so on. As long as suppliers follow these 'rules', Ikea will continue to strengthen the bond. Suppliers, in turn, can use the policy to show other customers how they work.
Combining warehouse and shop
You must have noticed when visiting the Ikea: the huge warehouse that can be found at the shop. This was no accidental decision: the company realised all the more that the combination of warehouse and shop would ensure that truck trips between the two would not be necessary. This reduces fuel as well as costs.
Despite the fact that your company is probably not as big as Ikea, it is good to look at the big boys from time to time for inspiration. Ikea shows in its first example that small adjustments can already bring about big changes. Don't let size stop you.
This article also previously appeared on VerpakkingsProfs.nl
