What Is IKEA

A Company Overview: IKEA and its Offerings?

What is IKEA? The answer to this question may vary from region to region depending on the markets IKEA serves or still have not ventured. For people of the US, the question of what is IKEA is easy to answer as the company is fully functional in this market. However, in markets where the company is still not operating, the answer to the question, what is IKEA, might not be received or may not be similar to what a consumer from the US would say.

When the question arises, what is IKEA, it is a private company registered in Netherland and is run by the sons of Ingvar Kamprad, the founder of the company. Ikea was founded in 1943 in Sweden by Ingvar Kamprad. The answer to ‘What is IKEA famous’ involves modern designs for numerous types of appliances as well as furniture. Also, what is IKEA known is for its interior design work accompanied by an eco- friendly approach, with a strong IKEA supply chain management.

Moreover, the cost control strategies, its operations, continuous product modifications, and developments, is also what is IKEA known for. As per the reports of June 2019, 433 IKEA stores are operating in 52 countries, when talking in terms of what is IKEA and its operations.

IKEA Product line

When in light of what is IKEA products and services, it deals with a plethora of products and services and a robust IKEA supply chain. IKEA furniture is designed in such a way that are assembled by the customers, rather than selling pre-assembled, which shortens the cycle of  IKEA supply chain management. What is IKEA focusing on is related to reducing the cost of packaging and transportation costs, thus lowering IKEA supply chain cost.

A cost-effective strategy is what is IKEA following, in terms of IKEA supply chain management. It also simplifies the task of carrying the products, as flat packs are more comfortable to carry. An integrated approach to manufacturing and design is what is IKEA following. Also, what is IKEA dealing with is houses and flats, solar RV systems, furniture rentals, and smart home business. Other ventures of what is IKEA is into are Mega family shopping center, virtual mobile phone network, and a chain of hotels.

Even though the company offers a product to its consumers without any bias, yet the answer to what is IKEA can be different for different consumers. The reason for the difference in response to the question of what is IKEA is that as the company offers easy to install and DIY products, the consumers are usually happy with their purchase and thus have a special relationship with the company and its service. A dedicated IKEA support team with idle IKEA order tracking software and innovative supply chain strategies has also led to the success and popularity of the company,

 The company is enjoying its success across the globe because of its distinct image of what is IKYA, in the markets it is operating. An example of this is when the company opened its first IKEA store in India, where it was not necessary for the company to tell the people what is IKEA. The reason was that the consumer flooded the store on the very first day, thus creating a huge traffic jam in the city.

The level of enthusiasm among people for the company’s first store can easily be understood as the city has to face a sudden stop due to heavy footfall on the opening day of the store. The company also did not expect such a crowd on the first day of its first store opening in the country. This is one of the instances that show the popularity of the company.

IKEA Supply Chain

IKEA, at present, has one typical IKEA supply chain structure, which strives towards achieving organizational objectives. IKEA supply chain is comprised of various aspects that not only contribute towards its success but also offer assistance in ensuring that the consumer gets what they want and as soon as possible. IKEA supply chain operations and inventory management work hand in hand to support its value proposition. The company also provides IKEA support to its customers along with the IKEA order tracking option to its customers. Some of the promising aspects of the IKEA supply chain, along with IKEA support, are as follows:

Cost-efficient furniture designs

IKEA supply chain comprises one of the best supply chains in the industry. The furniture is designed in such a way that they incur the low cost for manufacturing. This not only improves the IKEA supply chain but also offers efficient distribution, improve the overall quality and influence on the environment is also positive. Over 50 percent of the products involved in the IKEA supply chain are manufactured from recycled products. Another best thing that IKEA supply chain uses is that it ensures to use very less material while manufacturing the furniture, albeit ensuring the quality and durability of the product. IKEA supply chain also focuses on fewer materials in use, which lowers the transportation cost also.

ILEA supply chain

Sustainable Relationship with Suppliers in IKEA Supply Chain Management

IKEA’s supply chain also focuses on lasting relationships and effective communication with the suppliers to get the best prices. IKEA supply chain management when in terms of communication and relationship management with the suppliers is the key to IKEA’s success. As IKEA supply chain involves high volume retailing, more than 1800 suppliers from around 50 nations across the world supply the material to the company, and thus, the company has to manage positive relationships. For consumers, IKEA order tracking service allows easy tracking of the product, thus maintaining positive relations with the consumers as well. ‘Low price but not at any price’ in context to customers centric IKEA supply chain also highlights IKEA’s commitment towards its customers.

Do It Yourself

The involvement of DIY assembly of the furniture in the IKEA supply chain allows it to sell pieces to the consumers, thus allowing them to assemble it at the user end. This type of unique packaging not only takes less space but also allows more rooms to stock several other items, thus passing the savings on to the consumers. This makes the IKEA supply chain more efficient.

Organizing the IKEA Supply Chain

Having an IKEA warehouse in all the premise have been streamlines, in context of IKEA supply chain management. Based on this concept of the IKEA supply chain, the customers can themselves browse the products. Thus, IKEA has led its customers to adopt a culture of self-service in IKEA supply chain management. It also aids in minimizing the items of the storage area.

IKEA Supply Chain Cost per Touch Tactic

The strategy of IKEA supply chain focuses on customers selecting and retrieving the packages themselves, which lowers the cost of the products. This tactic is adopted by IKEA supply chain management. It is considered, when a product is moved from the parties involved in the complete supply chain management, the cost of the product increases. The fewer times the product moves, the fewer the cost, is executed by the IKEA supply chain. Thus IKEA supply chain saves the cost by following the strategy of self-service and minimizing the number of touches.

IKEA Order Tracking and IKEA Support

IKEA order tracking allows consumers to track their order and IKEA support assist them, in case if required. However, IKEA order tracking is enough for the consumers to gain insight into their ordered products, which also is not necessary for the majority of times due to timely delivery. IKEA order tracking is the same as what others are following. A dedicated IKEA support team is also available for resolving the issues or an inquiry related to IKEA order tracking. Prearranged steps are being designed for IKEA order tracking. The process that is followed in IKEA order tracking is:

Preparing order

IKEA order tracking will show that the order has been received and will be processed soon.

Picking order

IKEA order tracking will display that the order has been processed and complete

Preparing delivery

IKEA order tracking will mention that the order is ready to be delivered.

On its way

IKEA order tracking will indicate that the order has been sent for the dispatch and is on its way.


IKEA order tracking will specify that the order has been successfully delivered.

Apart from diversifying into a plethora of products and services, IKEA support, and actively engage itself in a number of societal activities. IKEA support numerous noble causes, as its mission also states. The mission states that every individual share basic needs like home, good health, regular income, and the safety of our loved ones, especially children. Providing proper education and seeing them succeed. Therefore, IKEA supports and focuses on these key necessities.

IKEA supports all the noble causes through its extended foundation called the IKEA foundation. The IKEA support foundation refers to it as a circle of prosperity. IKEA support and manages their donation by the well-known charitable partners, like UNICEF, Better shelter, Placing orphans into families, Save the children, and many others.

Other than these, IKEA support has been extended to many other causes through IKEA foundation.

  • Supported 49 partners and providing grants in benefiting the children in 46 countries.
  • IKEA supported in raising more than €11 million, from the soft toys for education campaigns for UNICEF and Save the Children.
  • IKEA supported in raising €23 million for Refugees campaigns through the Bright lives.

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