While designing a supply chain, various strategic, tactical and operational level decisions need to be made

05 Oct

Supply Chain management

1. UrbanStairs, an online furniture retailer is planning to set up distribution centres pan India. As an SCM consultant, offer advice on how to design the distribution network to deliver products to the customers in a timely manner.

2. While designing a supply chain, various strategic, tactical and operational level decisions need to be made. Supply chains need to be designed in such a way that they can respond immediately to any fluctuations that take place. Supply chain must be designed in such a way that the performance and costs remain unaffected despite various fluctuations. Elaborate on the strategic supply chain decisions a Retail Store selling Electronics and Computer Accessories needs to take.

3. Netherlands-headquartered furniture retailer IKEA will invest 908 million ringgit ($212.10 million) to set up one of its largest regional distribution and supply chain centres in Malaysia, the Southeast Asian country said.

The supply chain centre will manage an inventory worth 6.6 billion ringgit annually, catering to IKEA’s growth in the ASEAN region, the Malaysian Investment Development Authority (MIDA) said in a statement on Tuesday.

The new 100,000 square metre warehouse will supply to 12 existing retail stores in the region. IKEA plans to grow its number of stores in ASEAN to 20 by 2026.

Malaysia is a significant market for IKEA, with retail stores in the country being among IKEA’s most visited globally. “The establishment (of the warehouse) also adds momentum towards making Malaysia a regional distribution hub and preferred logistics gateway to Asia as outlined in the National Logistics and Trade Facilitation Masterplan and National E-Commerce Strategic Roadmap,” Minister of International Trade and Industry Mustapa Mohamed said.

Malaysia has been encouraging large local conglomerates and multi-national companies to use the country as a gateway to the region through various initiatives, including the principal hub scheme that allows companies to centralise their global activities such as procurement and distribution.

The web of companies that make up IKEA has recently focused ownership of retail operations, which also include shopping centres and food retail, on IKEA Group. Supply chain management and design has transferred to brand owner and franchisor Inter IKEA.

Source: http://retail.economictimes.indiatimes.com/news/home-and-decor/furniture-and-decor/ikea-to-invest-212-mln-to-build-regional-supply-centre-in-malaysia-govt/60185153

a. What are some of the challenges faced by IKEA in managing its global Supply Chain.

b. How do you suggest IKEA can use Information Technology to support its Supply Chain operations in Malaysia?

Leave a Reply

Your email address will not be published. Required fields are marked *