Pandemic supply chains gave many corporations bone.See how IKEA is dealing with new challenges

Susanne Waidzunas, Global Supply Chain Operations Manager at IKEA Supply AG, is in the very center of the struggle to ensure that network customers have access to the same products as always, despite the constant disturbance of global supply chains.To find out how the concern is dealing with this challenge, we touched on a wide range of topics from chartered ships from Susanne Waidzunas, and to the technology and deficiencies of drivers.

Gregor Gowans, Trans.Info: How do IKEA supply chains of the last congestion in ports and what steps do you take to make your supply chains effectively function during such challenges?

Suzanne Waidzunas, Global Supply Chain Operations Manager at IKEA Supply AG: From the beginning of the pandemic, we noticed increased interest in improving living conditions in our homes, and thus Ikea products and we produced and sent more products compared to the time before Pandemia.At the same time, we are witnessing a large -scale supply chain interference, which also affect our company.

We have taken many extraordinary steps since the pandemic explosion.Together with our suppliers and service providers, we work day and night to find new, innovative solutions that will ensure the availability of our products.We take daily steps to relieve the effects of global supply chains disturbances through cooperation with our partners to secure the availability of raw materials, minimize interference in production and provide logistic powers.A close partnership has helped us, and still helps us, solve problems along the way.

Given the shakiness and restrictions on supply chains, we focus on ensuring the availability of products that our customers like and need.We focus on this and also on seasonality, i.e. we make sure that the products relevant from the point of view of a given season are always available for purchase in stores and online.We are also looking for an opportunity to increase our offer of region -downloaded products.

Recently, IKEA aroused a lot of noise when it turned out that you were charter.Who did you cooperate with on this initiative, how many ships you chartered and how many loads have been transported in this way?

We stand in the face of disturbance of supply chains, which also affect the chain of Ikea values and there are many factors that contribute to this state of affairs, from the availability of raw materials, by the sources of components or transport capabilities.

Together with our service providers, we find new, innovative solutions that will make our products be on the shelves.For example, we are now transporting more goods from the Asia and the Pacific region to Europe, we change routes to avoid clogged ports, we invest in temporary warehouses along the entire route of our supply chains to avoid the consequences of stagnation in production.

In addition, we also bought containers and chartered a place on ships.During the peak of container deficiency, we decided to buy containers,.Thus supporting our partners from the maritime transport sector.However, it is not our strategy to develop such a business model in the long run.IKEA, however, does not disclose with which service providers he cooperates.

Is there a country in Europe, where it was particularly difficult to deliver goods to Ikea stores during the pandemic period?

Global supply chains are constantly undergoing pressure due to a pandemic.These are challenges affecting many sectors and they did not bypass our supply chains.This led to the delays and deficiencies of our goods.The availability of goods looks different in individual markets, and even differs between individual stores in a given country.In addition, availability may vary depending on the period.We advise customers to check their availability in various stores and also online, before they go shopping.

How does IKEA take care of the sustainable development of its supply chains?

We feel obliged to reduce climate change through the conversion of our business and will become climate to 2030 neutral by 2030.We see that our climate trace and responsibility goes far beyond our company's activities and beyond the life cycle of our products.Both when obtaining materials, production and transport as well as in the use of products in homes around the world.

As for transport, this translates into the goal of reducing the coal trail for each transport we perform by an average of 70 percent.Big challenges are also great opportunities through which we can make a change or be a precursor of changes.

We have very ambitious plans for decarbonization and this makes us think outside the schemes.

What IKEA technologies perceive as crucial for future management of its supply chains?

We see many technological opportunities that will allow us to optimize the flow of our products and manage our supply chains.The development and implementation of artificial intelligence is one of the key factors supporting us in making decisions regarding planning, production, supply sources and implementation of operations under supply chains.

Optimization of the flow of goods is another factor.Digital connection of our supply chains, identifying each product by intelligent tags enables accurate tracking.In turn, the development and implection of robotics allows you to transport our products in the most effective way.We also see the camera controlled by the camera and autonomous packages as important technological possibilities.

Is IKEA concerned about the problem of driver shortage in Europe?

As a large loader, we depend, of course, on transport service providers and drivers.Therefore, a shortage of drivers is a cause for unrest in the context of the flow of goods in the future.We want to be the main business partner for carriers with whom we work and we are aware of the essence of creating working conditions that will attract employees.

For us, it is a fundamental issue that all people transporting our goods enjoy good and honest working conditions and balance between professional and personal life.We work with various entities in international transport to ensure positive changes in the sector.

Since the pandemic explosion, there is a lot of talk about nearshoring, transmission of production or sources of supply to build resistant supply chains.Does IKEA have any plans related to this?

We are still learning from the experience of the last 18 months and we constantly assess how we can create resistant supply chains in the long run.We ask ourselves questions about how to deal with production, or at which stage of supply chains we should be more flexible, etc..

The Christmas period is approaching - are you sure that Ikea customers in Europe will have access to the products they have got used to in previous years?

From the beginning of the pandemic, we notice increased interest in interior design products and improving the quality of home life, which translated into demand for IKEA products.Given the shakiness and restrictions on supply chains, we focus on ensuring the availability of products that our customers like and need.

We will also work hard to make the most important seasonal products, such as Christmas, are available to our customers in both stores and online.