IKEA improves accuracy in supply chain with track and trace solution from Zetes

Citation

(2008), "IKEA improves accuracy in supply chain with track and trace solution from Zetes", International Journal of Retail & Distribution Management, Vol. 36 No. 3. https://doi.org/10.1108/ijrdm.2008.08936cab.001

IKEA improves accuracy in supply chain with track and trace solution from Zetes

Article Type: Retail report From: International Journal of Retail & Distribution Management, Volume 36, Issue 3.

IKEA improves accuracy in supply chain with track and trace solution from Zetes

Proof of delivery system increases customer satisfaction

13 November 2007: IKEA Distribution Services Limited, the sole distributor for IKEA Limited in the UK, has installed a track and trace solution to effectively manage its growing number of customer deliveries since the launch of its internet shopping service. Developed by Zetes, the bespoke solution provides increased visibility of IKEA's stock from the moment it leaves the Central Distribution Centre in Peterborough to when it arrives at the customer's house. The company has also integrated an electronic Proof of Delivery (ePOD) system to provide customers with a printed receipt of delivered items.

Zetes has deployed its advanced data capture solution, Nucleus IS, to transfer information between IKEA's existing home delivery management system (Axida HDi) and wireless mobile computers mounted in delivery trucks. At the start of a shift, the mobile computer retrieves route data from the Axida HDi system and presents the driver with a list of visits and relevant information. As the driver delivers the relevant items, the customer's signature is captured and GPRS is used to relay updates to the main system. The ePOD system provides customers with a printed receipt of the goods received and transfers a copy to HDi.

In-truck printers also enable drivers to label damaged and returned goods with a warehouse barcode as they go into the truck. Once transferred to the main system, this allows stock to be processed more quickly and efficiently when it is returned to the warehouse. Currently, 60 delivery trucks are installed with the track and trace and ePOD technology but IKEA anticipates further roll out in line with their e-commerce expansion. IKEA is also considering the technology in other operational countries.

Zetes bespoke data capture solution replaces a paper-based system and is expected to deliver a rapid return on investment. Initially, IKEA observed a substantial increase in errors on delivery but this was due to the failings of the previous paper-based system. Now that these problems have been resolved IKEA has seen a huge increase in the number of correct deliveries. Don Marshall, Deputy Customer Distribution Manager, at IKEA Distribution Services Limited says: “In addition to delivering more of the right product at the right time, we are also benefiting from increased visibility across the supply chain. Our stock data has never been more accurate and we are making significant cost savings from ordering less replacement stock.”

IKEA is also reporting higher levels of customer satisfaction as a result of being able to deal with non-delivered or damaged goods more quickly and efficiently. Unlike the days or hours it would have previously taken, IKEA's customer service team can now contact customers within minutes of receiving their delivery in order to deal with any missing or damaged items.

Zetes already supply the hand-held terminals and RF infrastructure to enable IKEA to manage the process of goods receipt, put-away, picking and dispatch in the warehouse. This new solution now extends IKEA's deployment of mobile computers beyond the Central Distribution Centre and to the doors of customers' homes.

Commenting on the success of the project, James Hannay, Managing Director for Zetes in the UK states: “In today's rapid transaction environment online buying is growing at explosive rates. Customers, in turn, are becoming ever more demanding wanting to know where, when and how their items will be delivered. Having access to real-time information has become an essential part of delivering a good customer service. ePOD is key to better resource management, reducing operational cost and improving customer service.”

About Zetes

Zetes Industries (Euronext Brussels: ZTS) is a leading pan-European company in the value-added solutions and services industry for automatic identification of goods and people (goods ID and people ID). Zetes uses both emerging and mature technologies (barcode, voice recognition, RFID, smartcards, biometrics), and develops solution architecture frameworks to optimize the business performance of many customers in many market segments: manufacturing, transportation, logistics, retail, healthcare, finance, telecommunication, government and public services. The Zetes group has its headquarters in Brussels, with subsidiaries in Belgium, Denmark, Germany, France, Ireland, Israel, Italy, The Netherlands, Portugal, Spain, Switzerland and the UK. Zetes currently employs more than 600 employees (in FTEs) and generated consolidated revenues of e137.5 million in 2006. More info: mailscanner has detected a possible fraud attempt from “outbind:” claiming to be mailscanner has detected a possible fraud attempt from “outbind:” claiming to be www.zetes.com

For further information, please contact: Lesley Muir, Good Public Relations, Tel: +07796 148400, E-mail: lesley@good-pr.co.uk; and Nicola Hannay, Zetes, UK, Tel: +01344 290000, E-mail: Nicola.hannay@uk.zetes.com