RFID applications in IKEA supply chain management

IKEA -- Key Elements

There are many individual reasons that the IKEA business model has been successful. However, most of these reasons seem to center of the concepts of standardization and efficiency. One of the company's primary breakthroughs was the introduction of flat-packaging that has offered consumers value through many different aspects. Flat-packaging is simply more efficient to move products throughout the supply chain and even for the consumer to transport the products home. Consumers can assemble the products themselves as well and do not have to pay for delivery or installation which also creates value.

The self-service concept at IKEA extends further beyond just self-delivery and installation as well. The stores also incorporate self-service with the lack of sales people to try to urge consumers to make purchases. Instead of a sales person trying to pressure consumers to make individual purchases, the IKEA store displays the items and gives the consumer all the information they need to make a purchasing decision. If the consumer decides to purchase an IKEA product then they can also transport and assemble the product themselves which can save them a lot of money. The model of IKEA is to provide a quality product at a comparatively low cost and thus the minimalist design of the products, stores, and shopping experience all fit within that theme.