Ikea Transport Efficiency Redesign

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I0192 – Research Methodology
Increased Transport Efficiency by Product and Packaging Redesign Group 3 / 06PAM :

Carissa Komalasari 1401095140
Cynthia Evelina Wijaya 1401114120
Debby Arintika 1401101231
Felix 1401092366
Handajani Putri 1401098602
Ivan Novandri 1401076942
Natasya Tiffany 1401073594
Paulus Chandra 1401073644

Problem Research
IKEA is one of the company that engages in retail. As a large company IKEA wants to make their company grow more and more and become better everyday. In order to expand and develop their company, IKEA also faces some problems :

1. Packaging design makes unnecessary costs
In this part, means that many of their low value products use excessive space on load units due to packaging design. Their packaging design results in poor efficiency in both the transportation and warehouse operations, and thereby creates unnecessary costs. For examples : for large products such as pillows, mattresses, sofas, and others which are filled with air and therefore take up a lot of unnecessary space during transportation andstorage. Another example of a product that has traditionally included a lot of air in its packaging is the Glimma tea candle. The original packaging for the candles is a bag containing 100 candles weighing in total 1.4kg. IKEA has been looking into ways of eliminating as much air as possible from their product packages.

2. Transportation costs form a large part of the total cost of many of the products In this part, it can be shown that it’s important to make the company to minimize transportation, handling and warehouse costs wherever possible. As we can see in the packaging problem stated that it takes a lot of unnecessary space during transportation and storage. This means that if we take a lot of unnecessary space during transportation, it will makes more transport that will be used. So more transportation means more cost.

3. Transportation affects the environment
The excessive packaging space used during transportation can affects the environment as well. Using too much transportation can increased pollution. As we know, pollution can lead us to global warming and global warming can put our Earth into dangerous situation.

4. Keeping the suppliers involved
Even though IKEA may find a solution in their packaging problems, there is a possibility where the products, made by the suppliers doesn’t match the package. Therefore, IKEA will need their suppliers cooperation.

Objectives
1. To find a way of redesigning the package of products
IKEA needs to reduce the excessive space in the packaging caused by the air filled in the package. By doing this, they can increase the real product volume in each package.

2. To fully utilize the transportation means
IKEA would like to reduce the number of transportation used by fully maximizing the load units in each truck/container. By doing this, IKEA can cut cost and take part in improving the environment.

3. To get cooperation from suppliers
Redesigning the package can possibly change the design of the product itself. IKEA would like to avoid further cost caused by this redesigning package solution. So both IKEA and the suppliers need to cooperate in implementing this solution.

4. To depict how IKEA can make their continous improvement in order to lower costs and increase economical, social, and environmental efficiency
We can know how IKEA find new ways of integrating their various suppliers in the supply chain to be able to improve efficiency and lower costs. Not every companywould be able to integrate suppliers in this manner, but companies of IKEA’s size are more likely to be able to negotiate agreements with their suppliers such as thecluster solution. We can learn more about how IKEA manage all of their project, how they solve their problems, what ways they took to fulfill their project requirements and at the end it can...
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