Operations Managment In IKEA
Use of Information Systems at IKEA:
Information systems play a significant role in enabling operations at IKEA. IKEA is positioned as a best cost provider in furniture. According to The IKEA website [1] Originally IKEA was founded in
Ämhult in Sweden and since then they have 298 IKEA outlets worldwide and use a variety of information systems to enable them to manufacture efficiently, track stock levels, order stock and make informed decisions based on operational reports.
Roles of Information Systems for Operations at IKEA:
Manufacturing Process
IKEAs manufacturing process is reliant on information systems, The design process of a product is heavily reliant on Computer Aided Design(CAD). Once it goes to manufacturing the materials are ordered and the whole process is automated by integrated computer manufacturing systems [2] which ensures efficiency and quality products at lower prices.
Ordering Stock
Information systems at IKEA track shelf space and how much stock is available at hand in the store warehouse, when stock is low it triggers IKEA’s Just in Time (JIT) System and it will order a sufficient amount of stock based on the information collected about the selected stock and automatically order enough to suffice demand. The JIT System makes sure an item is never out of stock . The system counteracts out of stock situations therefore letting business operations continue as normal, generating sales and satisfying the customers need.
Tracking Stock
Tracking stock is crucial in any business, it stops businesses from unnecessarily losing money due to unavailability of a product due to unforeseen lack of supply.When a product is out of stock you also have to turn away the customer which results in poor customer relations. Information systems accurately manages and locates stock, information systems can provide real time reports on how much stock is available, Stock turnover rates, and value of stock in the warehouse. Information systems such as an Radio Frequency
Information systems play a significant role in enabling operations at IKEA. IKEA is positioned as a best cost provider in furniture. According to The IKEA website [1] Originally IKEA was founded in
Ämhult in Sweden and since then they have 298 IKEA outlets worldwide and use a variety of information systems to enable them to manufacture efficiently, track stock levels, order stock and make informed decisions based on operational reports.
Roles of Information Systems for Operations at IKEA:
Manufacturing Process
IKEAs manufacturing process is reliant on information systems, The design process of a product is heavily reliant on Computer Aided Design(CAD). Once it goes to manufacturing the materials are ordered and the whole process is automated by integrated computer manufacturing systems [2] which ensures efficiency and quality products at lower prices.
Ordering Stock
Information systems at IKEA track shelf space and how much stock is available at hand in the store warehouse, when stock is low it triggers IKEA’s Just in Time (JIT) System and it will order a sufficient amount of stock based on the information collected about the selected stock and automatically order enough to suffice demand. The JIT System makes sure an item is never out of stock . The system counteracts out of stock situations therefore letting business operations continue as normal, generating sales and satisfying the customers need.
Tracking Stock
Tracking stock is crucial in any business, it stops businesses from unnecessarily losing money due to unavailability of a product due to unforeseen lack of supply.When a product is out of stock you also have to turn away the customer which results in poor customer relations. Information systems accurately manages and locates stock, information systems can provide real time reports on how much stock is available, Stock turnover rates, and value of stock in the warehouse. Information systems such as an Radio Frequency
References: : [1]Ikea : http://www.ikea.com/ms/en_GB/about-the-ikea-group/company-information/index.html [2] National Geographic http://natgeotv.com/ca/megafactories/ikea-facts [3] GS1 RFID Systems http://www.gs1uk.org/News/PDFCaseStudies/IKEA %20Group_Nov09%20(83KB).pdf (p.2) [4] http://www.diva-portal.org/smash/get/diva2:437863/FULLTEXT01.pdf (p.29, 4.4) Wordcount : 650