Competitive Advantage of Ikea Based on Distribution Logistic

ABSTRACT
Distribution logistic plays an important role in international companies or in Multinational Corporation. It is because most company preferred more competence in the complex and global market. Nowadays customers more concern about how long their ordered product reach to them rather than worrying how the company will deliver the products. As a consequence, time can be used as an indicator in distribution logistic. This research is conducted to explain the consequences of distribution logistic and the way IKEA will gain competitive advantage by utilizing it.   We will identify the key elements in distribution logistics and find the competitive advantages of IKEA through analyzing the case study of IKEA and they are: speed, dependability and last but not least is flexibility.
Keyword: IKEA, Distribution logistic, Competitive advantage.

INTRODUCTION
1.1 BACKGROUND
Logistics management is the governance of supply chain functions. Logistics management is important not solely to producing and assembly industries, that are goods-oriented, however conjointly to selling, transport and alternative distribution or service- oriented industries. Daskin (1985) defined logistics as “the design and operation of the physical, managerial and informational systems needed to allow goods to overcome time and space”. Another definition promulgated by the Council of Logistics Management Ballou (1992) is:
the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements
Moreover, organizations use the traditional distribution system and centralized distribution system. However, in order to achieve competitive benefits within the world market, the best-kept secret of organization must modify efficiently. Our interest lies on the effective management in logistics….

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