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Success factors when ramping up the production and transport coordination between suppliers

Olsson, Samuel LU (2015) MTT820 20151
Engineering Logistics
Abstract
The importance to cut costs and to be as efficient as possible has never been as important as
it is today in order to stay competitive in the market. IKEA are currently facing increasing
challenges with the production growth due to a high demand from the market and goals for
2020. This large growth will affect the bottom line of the supply chain, the suppliers. The
necessary production growth also requires that collaboration with new suppliers is of vital
importance in order to meet the demand from the market. Both the current supplier base
and new possible suppliers must have the capacity and capability to achieve a production
Ramp-Up from one level to another. The purpose for this part of the thesis is to find
success factors... (More)
The importance to cut costs and to be as efficient as possible has never been as important as
it is today in order to stay competitive in the market. IKEA are currently facing increasing
challenges with the production growth due to a high demand from the market and goals for
2020. This large growth will affect the bottom line of the supply chain, the suppliers. The
necessary production growth also requires that collaboration with new suppliers is of vital
importance in order to meet the demand from the market. Both the current supplier base
and new possible suppliers must have the capacity and capability to achieve a production
Ramp-Up from one level to another. The purpose for this part of the thesis is to find
success factors related to production Ramp-Up that can facilitate the work with current
and new suppliers in order to be efficient and cut costs. More production from the suppliers
leads to more goods transport between the supplier and the end receiver. Consequently
the transportation frequency of goods will be widely affected. Since the current utilization
of the unit loads is not yet satisfactory, IKEA would like to investigate the possibilities of
performing Co-Loads of shipments with two or more suppliers in order to cut transportation
costs. This is the second part of the thesis and the purpose is to find possible supplier
set-ups that will enable Co-Loading of shipments so that higher equipment utilization is
obtained. The production Ramp-Up and Co-Loading were investigated through literature
and interviews, which lead to the following conclusions. To manage a large production
Ramp-Up, IKEA should focus on the current supplier base and by a closer cooperation use
gained experience from previous suppliers Ramp-Up. Sharing knowledge is beneficial, both
for IKEA and their suppliers. At the same time the Co-Loading issue was investigated
and the conclusions are that between suppliers it is to a large extent possible to perform
Co-Loads. Two different scenarios were studied; Cluster optimization, which is limited by
a 100 km distance between suppliers, and Off-limit optimization, which is an observation
outside the limitation of 100 km. Both scenarios increased the average volume of the
shipments in the loading unit types by 8.5 and 9.4 % respectively. At the same time the
number of shipments was reduced by 7.2 and 8.6%. (Less)
Popular Abstract (Swedish)
Det har aldrig varit så viktigt att minska kostnader och vara effektiv för att vara konkurrenskraftig
på marknaden som det är idag. IKEA står inför stora utmaningar gällande
produktionsökning på grund av ökad efterfrågan från marknaden och mål inför 2020. Denna
massiva ökning kommer att påverka leverantörer, hjärtat i varuflödet. Den nödvändiga
produktionsökningen kommer även att innebära att samarbete med leverantörer och är av
större vikt för att möta efterfrågan. Både nuvarande och kommande leverantörer måste ha
möjlighet och förmåga att öka produktionen. Syftet med denna del av uppsatsen är att
finna faktorer som kan förenkla arbetet med nuvarande och nya leverantörer så att de kan
vara effektiva och minska kostnader vid en... (More)
Det har aldrig varit så viktigt att minska kostnader och vara effektiv för att vara konkurrenskraftig
på marknaden som det är idag. IKEA står inför stora utmaningar gällande
produktionsökning på grund av ökad efterfrågan från marknaden och mål inför 2020. Denna
massiva ökning kommer att påverka leverantörer, hjärtat i varuflödet. Den nödvändiga
produktionsökningen kommer även att innebära att samarbete med leverantörer och är av
större vikt för att möta efterfrågan. Både nuvarande och kommande leverantörer måste ha
möjlighet och förmåga att öka produktionen. Syftet med denna del av uppsatsen är att
finna faktorer som kan förenkla arbetet med nuvarande och nya leverantörer så att de kan
vara effektiva och minska kostnader vid en produktionsökning. En högre produktionsvolym
från leverantörerna leder till en ökning av transporten av gods från leverantör till mottagare.
Eftersom den rådande utnyttjandegraden i transporten inte är helt tillfredsställande ämnar
IKEA undersöka vilka möjligheter som finns för sam-lastning mellan två eller flera leverantörer
för att optimera denna utnyttjandegrad och reducera transportkostnader. Detta
är den andra delen av uppsatsen vars syfte är att hitta leverantörer som är lämpliga för
samlastning så att en högre utnyttjandegrad uppnås. Produktionsökning och samlastning
studerades utifrån litteratur och intervjuer. För att hantera en stor produktionsökning
bör IKEA fokusera på och investera i nuvarande leverantörer i så hög grad som möjligt
samtidigt som en närmare relation är att föredra. Kunskapsutbyte och kännedom från
tidigare projekt är också viktigt och gynnsamt för både leverantör och IKEA. Samtidigt
analyserades samlastningen mellan leverantörerna och det framkom att samlastning är i hög
grad möjlig. Två scenarier togs fram där samlastning kan ske antingen via optimering av
de kluster som begränsas av ett avstånd på 100 km mellan leverantörer, eller en optimering
som inte tar hänsyn till denna distansbegränsning. Båda visar dock positivt resultat för
medelvolymen i de olika transporttyperna med 8.5 och 9.4 % vardera. Parallellt minskas
antalet transporter med 7.2 och 8.6 % enheter. (Less)
Please use this url to cite or link to this publication:
author
Olsson, Samuel LU
supervisor
organization
course
MTT820 20151
year
type
H3 - Professional qualifications (4 Years - )
subject
report number
5793
language
English
id
8052204
date added to LUP
2015-10-06 13:58:20
date last changed
2015-10-06 13:58:20
@misc{8052204,
  abstract     = {The importance to cut costs and to be as efficient as possible has never been as important as
it is today in order to stay competitive in the market. IKEA are currently facing increasing
challenges with the production growth due to a high demand from the market and goals for
2020. This large growth will affect the bottom line of the supply chain, the suppliers. The
necessary production growth also requires that collaboration with new suppliers is of vital
importance in order to meet the demand from the market. Both the current supplier base
and new possible suppliers must have the capacity and capability to achieve a production
Ramp-Up from one level to another. The purpose for this part of the thesis is to find
success factors related to production Ramp-Up that can facilitate the work with current
and new suppliers in order to be efficient and cut costs. More production from the suppliers
leads to more goods transport between the supplier and the end receiver. Consequently
the transportation frequency of goods will be widely affected. Since the current utilization
of the unit loads is not yet satisfactory, IKEA would like to investigate the possibilities of
performing Co-Loads of shipments with two or more suppliers in order to cut transportation
costs. This is the second part of the thesis and the purpose is to find possible supplier
set-ups that will enable Co-Loading of shipments so that higher equipment utilization is
obtained. The production Ramp-Up and Co-Loading were investigated through literature
and interviews, which lead to the following conclusions. To manage a large production
Ramp-Up, IKEA should focus on the current supplier base and by a closer cooperation use
gained experience from previous suppliers Ramp-Up. Sharing knowledge is beneficial, both
for IKEA and their suppliers. At the same time the Co-Loading issue was investigated
and the conclusions are that between suppliers it is to a large extent possible to perform
Co-Loads. Two different scenarios were studied; Cluster optimization, which is limited by
a 100 km distance between suppliers, and Off-limit optimization, which is an observation
outside the limitation of 100 km. Both scenarios increased the average volume of the
shipments in the loading unit types by 8.5 and 9.4 % respectively. At the same time the
number of shipments was reduced by 7.2 and 8.6%.},
  author       = {Olsson, Samuel},
  language     = {eng},
  note         = {Student Paper},
  title        = {Success factors when ramping up the production and transport coordination between suppliers},
  year         = {2015},
}