Consequences of the implementation of the Loading Ledge - A descriptive case study at IKEA

University essay from Lunds universitet/Förpackningslogistik

Abstract: Title: Consequences of the implementation of the Loading Ledge Authors: André Jonsson and Björn Mathiasen. Supervisors: Daniel Hellström - Division of Packaging Logistics, LTH. Mazen Saghir - Division of Packaging Logistics, LTH. Rickard Andersson - IKEA. Peter Larsson ? IKEA. Tobias Rasmusson ? IKEA. Objective: To write a descriptive and evaluative master thesis about the consequences of the implementation of the Loading Ledge on logistical processes at the Distribution Centre in Älmhult and at the IKEA Stores. Problem: What are the strengths, weaknesses, threats and opportunities with the Loading Ledge from today's point of view? What adjustments have to be made to the logistical system at Distribution Centers and IKEA Stores in order to handle the Loading Ledge as efficient as possible during the entire implementation phase? Method: The research is performed as a case study where the study is mainly based on interviews with people who are working at IKEA. We have interviewed individuals that are key informants at the Distribution Centers and the IKEA Stores as well as responsible for the development of the Loading Ledge and the logistical processes. Conclusions: In this master thesis we have made a descriptive and evaluative analysis of the consequences of the implementation of Loading Ledge. The strength with the Loading Ledge is that it adapts and becomes a part of the packaging solution, not like the wooden pallet, which dictates the dimensions of the unit load. Another advantage is that is can be shipped all over the world throughout IKEAs global distribution chain. We have found that the Loading Ledge has the potential to increase the overall supply chain efficiency. This is accomplished by higher filling rate in transport and more efficient handling at all participants of the supply chain. The Loading Ledge has the possibility to replace the wooden pallet in the IKEA supply chain but the Loading Ledge puts new demand on the supply chain, which needs to be tackled. Within a few years IKEA needs to introduce a specialized platform that initially replaces the wooden pallet. To achieve higher efficiency the flow of information and knowledge is a central issue as well as proper handling equipment and Loading Ledge adapted packaging solution. All these aspects affect the logistical systems at the IKEA DC and Store In the long run the whole logistical and packaging system needs to be adapted fully to the Loading Ledge to reap from the advantages of the Loading Ledge.

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