Concept Description Pick-up Point. Version: 1.0

Concept Description

Pick-up Point

Version: 1.0

Revision History

Date	Version	Description	Author
2007-06-08	1.0-1	First draft	CD Retail CN
2007-06-14	1.0-2	Revised draft	HSDM
2007-07-03	1.0-3	Final draft	HSDM
Work in progress	1.0	Ready for approval	HSDM

Table of contents

1     Introduction......................................................................................................... 4

1.1    Purpose.......................................................................................................................... 4

1.2    Scope.............................................................................................................................. 4

1.3    Related Business rules and document............................................................................. 4

1.4    References...................................................................................................................... 4

1.5    Definitions...................................................................................................................... 4

2     Requirements on a Pick-up point............................................................ 5

2.1    Location and operations................................................................................................. 5

2.2    Distance to customer...................................................................................................... 5

2.3    Opening hours................................................................................................................ 5

2.4    Notification..................................................................................................................... 6

2.5    Storing days................................................................................................................... 6

2.6    Payment options............................................................................................................. 6

2.7    Hand over procedures and confirmation of delivery........................................................ 6

2.8    Liability.......................................................................................................................... 6

2.9    Other Services................................................................................................................ 6

1  Introduction

We have three different basic ways of meeting the customer when delivering IKEA products to them; In-door delivery, Front-door delivery and Pick-up points. The Pick-up point is a location to which the customer can go to pick-up their IKEA products. Pick-up points are an optional service in a country. Pick-up points are attractive for

-  Customers living far from the store

-  Customers wanting flexibility in date and time

-  Customers wanting to save money on the delivery charge

1.1  Purpose

The purpose of this business rule is to describe IKEA minimum requirements necessary to establish a reasonable level of service, safety and security at an IKEA Pick-up point.

1.2  Scope

Pick-up points used in the distribution net works of Local and Central Customer Delivery flows. The business rule is valid in all geographies and for all order sizes.

1.3  Related Business rules and document

CD Service offer and pricing directives

CD Transport global agreement package 

1.4  References

IKEA Group Risk manual - Store

1.5  Definitions

Pick-up Point: A location where the customer can go to pick-up his/her goods. This location can be an IKEA owned/operated location or a location owned/operated by a Service Provider contracted by IKEA

Local Customer Delivery: IKEA or a Service Provider contracted by IKEA transports the goods from a stock location in a Store or an External handout on behalf of the customer to his/her home or to a Pick-up Point. The stock location used (Store or an External handout,) may only service the Customer Deliveries of one Store. If the stock location services more than one Store it is to be regarded as a Central Customer Delivery.

Central Customer Delivery: IKEA or a Service Provider contracted by IKEA transports the goods from a stock location in a central warehouse, i.e. CDC or other central point such as a supplier, on behalf of the customer to his/her home or to a Pick-up Point.

CDU, Customer Distribution Unit: The unit used when one or more articles in a customer delivery are to be handled/ packaged as one unit during transportation to the customer, e.g. one pallet/box or one DDS customer delivery package (single delivery or part of a delivery).

2  Requirements on a Pick-up point

2.1  Location and operations

The IKEA store could act as a pick-up point but the pick-up point could also be organised outside the store. The pick-up point can be operated by IKEA or by third parties contracted by IKEA.

The safety aspects of our customers and goods are of outmost importance. Therefore a Pick-up point operated by IKEA is to apply the appropriate sections in the IKEA Group Risk manual – Store. For a pick-up point operated by an external Service provider there should always be a written, signed and valid contract in place. The contract should include clauses ensuring that the appropriate sections in the IKEA Group Risk manual – Store are being followed. Among other things this includes that the pick-up point should:

-  have clear signs to guide the customer to and inside the Pick-up point

-  have safe and easy access for the customer

-  secure that the customer can safely load the goods in or on their vehicle

-  have an insurance covering damages and liability towards our customers

-  have an operation, tidiness, cleaning and maintenance standards and technical installations that ensure safety for customers and co-workers

-  secure that the IKEA goods are secured against theft in a cost efficient manner

If the pick-up point is operated by an external service provider IKEA employees should have the allowance to visit the pick-up point announced or unannounced in order to inspect the goods, records and premises.

2.2  Distance to customer

The critical criterion is not the distance in kilometres that the customer has to travel to get to the pick-up point. It is the time that the customer has to spend travelling that is critical.

Inside PMA:

The travel time to the pick-up point for large deliveries should not exceeds the travel time to the store for a majority of the population in the PMA. For parcel pick-up points the travel time should not exceed 50% of the travel time to the store for the majority of the population in the PMA

Outside PMA:

Driving times should not exceed the average driving time to the store.

2.3  Opening hours

The pick-up point should ideally be opened 6 days a week. If the requirement of 6 days opening can not be fulfilled in a market without significant price increases and or limitations in possible service providers decreasing the competition, 5 days opening can be considered.

It must be possible for the customer to pick-up the goods outside standard office hours at least one day per week.

The pick-up point should be staffed in such a way that all types of orders can be picked up during all opening hours.

2.4  Notification

The customer must be contacted when the order is in transit or within 24 hours of receiving the order at the pick-up point. Exception from this can be made for parcel deliveries in countries where it is not customary to notify the recipient.

2.5  Storing days

From the point of notification to the customer that the order is available for pick-up at least 7 days storing should be included in the price of a pick-up.

2.6  Payment options

The customer should be provided alternative payment options as customary in the country and in line with legal regulation. Payment in advance is the recommended method of payment.

2.7  Hand over procedures and confirmation of delivery

If the reception area is not manned during all pick-up hours some type of notification device that lets the Service provider know that a customer is waiting must be in place.

When picking up the goods the customer must present documentation, such as an order confirmation or a postal notification, which identifies the order they have come to pick up. The customer must also present photo identification to verify their identity. Without proper documentation the order should not be released to the customer.

At hand over of goods to the customer the customer should check name, order number, number of CDUs and visible damage. The customer must sign the delivery note and any deviations should be noted on the delivery note. A procedure must be put in place by which the Service provider reports these deviations to IKEA in a regular manner.

A procedure must be put in place in which the delivery/hand over of goods to the customer is confirmed to IKEA on a daily level. It is preferable that an external company does not work directly in the IKEA systems.

2.8  Liability

IKEA shall not be responsible for any damage done to the product or Service provider’s property by an IKEA customer

The carrier is solely responsible for any damage to vehicles, property or injury incurred by anyone during the course of pick-up.

2.9  Other Services

Loading service: In pick-up points where a loading service is provided it should be at no extra cost to the customer. The service provider (IKEA or external) is not to be required to assist in securing goods in or on the vehicle.

Additional storing days: 7 days additional storing of the goods should be offered to the customer at an additional charge. Thus, the total storing days at the pick-up point is at least 14 days.

Returns: It is not mandatory that the returns flow must go back through the pick-up point but it should always be considered if this is an economical option.