Executive Summary of Ikeas Cost Efficient Supply Chain Case Study Analysis
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Executive Summary of Ikeas Cost Efficient Supply Chain Case Analysis
The reports deals with the issue of effective IT spending on facilities of the company such as incompatible, unsuited and glitch-prone booking system that has not been managing 45000 calls per day in an efficient manner. It is suggested that the company ought to utilize the IT investing on infrastructure, in order to enhance the appointment system. The business ought to assign an adequate amount of budget on enhancing customer loyalty, strengthening revenue and taking full advantage of the market share, which can be done by enabling the representatives to use the web made it possible for booking system as well as book more customized vacations for clients.
In current days, the whole sensing unit market in the United States is shifting towards supplying less pricey products, which are less in rates, and the companies are also supplying the multi functions sensor system to the customers. There is a requirement to make essential choices regarding the number of different activities and operations that what products and services need to be presented and manufactured in the near future and what items and services need to be stopped in order to increase the overall business's revenues in upcoming years. As the Figure 1.1 is showing that the factory automation organisation is lying in the low supply chain efficiency and low market performance as it is providing the unfavorable 1 percent return on invested capital (ROIC), so, it will be a better decision to terminate this product from its product line or to re-evaluate it by determining the different opportunities for enhancing the efficiency associated with the factory automation service.