Concept Description Service Offer and Pricing. Version: 1.0, страница 2

When goods are handed over to the customer he/she should check that it is the correct order. If the customer requests; they should be given enough time to conduct an article check. This is however not demanded by IKEA and will not influence the customer’s rights to raise a complaint toward IKEA.

2.1.3  The Delivery promise

At point of sales

-  The price will be clearly communicated to the customer at the start of the sales process (in store or on-line)

-  The customer is promised a fixed delivery date. This date is either the first possible date for IKEA, also considering co-ordination with other services such as assembly or installation, or a later date chosen by the customer

-  The customer is informed about practical matters such as accessibility to the home/office, parking, payment etc.

At notification

The customer should be notified latest 1 day before the actual delivery via his preferred way of communication (i.e. phone, fax or e-mail)

-  The delivery date is reconfirmed and the customer is given a time slot.

-  The customer is again informed about practical matters such as accessibility to the home/office, parking, payment etc.

2.2  Front-door delivery

2.2.1  Definition of service

The order is delivered to the front door of the customer’s home/office. In an apartment building the “front door” is the front door of the apartment and not the front door of the apartment building unless specifically requested by the customer.  No assistance in carrying should be required from the customer. All needed manpower and equipment is to be included in the price of delivery.

The standard lead-time from order to delivery should not exceed 5 working days. There should also be an express option available for the customer. The order to delivery lead-time for the express service should not exceed 48 hours for stocked articles.

The deliveries through parcel network should have shorter lead times then a standard front door delivery.

Deliveries should be performed 6 days per week.

The day needs to broken down in timeslots. Timeslots should be max 4 hours long. At least two hours must be outside of standard office hours. The price will be the same regardless which slot and day the goods are delivered to the customer.

Deliveries through a parcel network should be 5 days per week. Time slots, delivery hours and number of delivery attempts should be in accordance with what is customary on the local market.

2.2.2  Handover of goods to customer

When goods are handed over to the customer he/she should check that it is the correct order. If the customer requests; they should be given enough time to conduct an article check. This is however not demanded by IKEA and will not influence the customer’s rights to raise a complaint toward IKEA.

2.2.3  The Delivery promise

At point of sales

-  The price will be clearly communicated to the customer at the start of the sales process (in store or on-line)

-  The customer is promised a fixed delivery date. This date is either the first possible date for IKEA, also considering co-ordination with other services such as assembly or installation, or a later date chosen by the customer

-  The customer is informed about practical matters such as accessibility to the home/office, parking, payment etc.

At notification (if applicable[1])

The customer should be notified latest 1 day before the actual delivery via his preferred way of communication (i.e. phone, fax or e-mail)

-  The delivery date is reconfirmed

-  The customer is again informed about practical matters such as accessibility to the home/office, parking, payment etc.

2.3  Pick-up point

2.3.1  Definition of service

The standard lead-time from order to delivery should not exceed 5 working days. For more definitions please see Concept Description of Pick-up point.

2.3.2  Handover of goods to customer

See Concept Description of Pick-up point

2.3.3  The Delivery promise

At point of sales

-  The price will be clearly communicated to the customer at the start of the sales process (in store or on-line)

-  The customer is promised a fixed date when the order will be available at the pick-up point. This date is either the first possible date for IKEA or a later date chosen by the customer

-  The customer is informed about practical matters such as location & opening hours of pick-up point, order volume, payment, how long his order will be stored at the pick-up point etc.

At notification

-  The order is available for pick-up

-  The customer is informed about practical matters such as location & opening hours of pick-up point, order volume, payment etc.

2.4  Resolution

It is the customer service department in the country that decides how a customer complaint is to be resolved. In all countries there should be an express resolution option available.

Within the PMA and within business hours urgent matters should be resolved within 4 hours. If the needed product is not available in a store inside the PMA the product must be shipped as fast as possible from the CDC or another store outside the PMA.

3  Pricing

3.1  Pricing principles

The IKEA Store, an essence of the IKEA concept:

“It is mandatory to offer customers a home delivery service at a low price.”

Apart from above we should apply the same principles for pricing of a Customer Delivery as we do when pricing a home furnishing product. It is therefore mandatory that the price of the IKEA delivery service is the lowest on the market on comparable services for the consumer. As many of our competitors do not apply a full cost philosophy on the delivery service, making it impossible to be the lowest on the market on the delivery service, we must secure that our total price (product + service) is the lowest on the market. If the product price is in line with the concept (It is mandatory that the price of every IKEA home furnishing product is the lowest on the market on comparable products for the consumer), we should always be able to cover our cost for the transport and still be able to offer the lowest total price (product + service) to the customer. If not our cost of delivery, handling and administration is not competitive on the market and this should be addressed by the store or country to the responsible parties in IKEA.

It is mandatory that the pricing is honest, transparent and easy to understand for the customer.

The ambition is to make people perceive the IKEA retailer as having the lowest price on comparable products, no matter what type of product or service they are looking for.

All internal and external communication should be in line and it is mandatory to clearly communicate the price and service offer ladder in the IKEA store and on the IKEA web-site. The delivery service options are also to be communicated in the catalogue.

3.2  Pricing of products that are not available for Cash and Carry

Articles sold in the store but not available for Cash and Carry are to be made available to be picked up by the customer in a location convenient for the customer at no extra cost for the customer. Should the customer instead want to have the goods delivered home the standard delivery charge in the country is to be applied.

Excluded from above are DDS sofas which are to be delivered free of charge to the customer’s home.

3.3  Price ladder for delivery service

Price ladder should be easy to communicate to the customer and co-workers. It should be logical to everyone and reflect the philosophy “you do your part, we do our part and together we save money” i.e. if the customer has picked the order himself this should be reflected in the price ladder. Below price ladder is for internal use and should be simplified in the communication to the customer. The price ladder should also be adapted locally to reflect the service offers available in the country.

 



[1] It is not always necessary to have a notification process when delivering a front door order. If it is a parcel delivery going in the normal parcel network in a country notification is typically not needed. However, if it is a multi parcel delivery requiring that the receiver is at home a notification process can reduce the unsuccessful delivery rate and thus reduce the costs in the total process.