How IKEA Turned Flat Packs Into a Global Operations Machine

IKEA's flat-pack furniture is a design icon, but the operational system behind it is even more impressive. In this episode, Lucas and Luna break down how IKEA's supply chain, store layout, and inventory management are engineered for efficiency at scale. They dive into the numbers: IKEA operates 460+ stores in 60+ markets, with 12,000 products sourced from 2,500 suppliers across 50 countries. The key insight? IKEA uses a 'demand-driven' replenishment model that reduces inventory holding costs by 15% while maintaining 98% in-stock rates. Lucas explains how the company's 'store-as-warehouse' strategy saves on distribution center costs, and Luna highlights the role of RFID tracking in reducing out-of-stocks by 30%. They also discuss IKEA's recent shift toward circular operations, including furniture leasing and buyback programs. A masterclass in operational design from the world's largest furniture retailer. #IKEA #FlatPack #SupplyChain #OperationsManagement #RetailOperations #InventoryManagement #DemandDriven #RFID #CircularEconomy #LeanOperations #GlobalSupplyChain #StoreAsWarehouse #BusinessPodcast #FexingoBusiness #ProcessImprovement #Logistics #RetailTech #FurnitureIndustry Keep every episode free: buymeacoffee.com/fexingo