Concept Description One order - One delivery. Version: 1.0

Concept Description

One order - One delivery

Version: 1.0

Revision History

Date	Version	Description	Author
2007-08-17	1.0-1	First draft	DOLI
2007-09-06	1.0-2	Final draft	CD Retail CN
2007-09-24	1.0-3	Ready for approval	HSDM
2007-09-27	1.0	Approved	CDG

Table of contents

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

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

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

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

1.3    Related Concept descriptions.......................................................................................... 4

1.4    Definitions...................................................................................................................... 4

2     One order - One delivery............................................................................... 6

2.1    Rule description............................................................................................................. 6

2.2    Exceptions...................................................................................................................... 6

2.2.1      Happy flow............................................................................................................. 6

2.2.2      Unhappy flow......................................................................................................... 6

2.2.3      Other exceptions.................................................................................................... 6

2.3    Costs charge................................................................................................................... 6

1  Introduction

Goods delivered to customers have different origins  and different stakeholders are involved in the process of delivering IKEA products to customers:

Origins:

§  CCD flow: CDC range

§  DDS flow : Supplier Range(sofa or worktop)

§  LCD flow: Store range

Stakeholders:

§  CDC stakeholder : TSP/LSC

§  Store stakeholder: TSP/LSC or/and local company.

§  Post delivery/collection and pick up points: Stores pick up point network, TSP/LSC, post offices.

Above different origins and stakeholders is nothing that should be visible for the customer. Most IKEA Countries applies the current “One order, one delivery” business rule as it provides a better service to the customer. However, in some cases the “One order, one delivery” rule creates additional costs for IKEA.

1.1  Purpose

To give countries a framework regarding how to balance the customer benefits of applying the “one order one delivery” rule with the possible positive financial impact for IKEA of delivering one order in more than one delivery.

1.2  Scope

Local and Central Customer Delivery flows. This also includes orders with combinations of CDC range, Store range and DDS range. The concept description is valid in all geographies and for all order sizes.

1.3  Related Concept descriptions

CD Service offer and pricing directive

CD Transport purchase process 

1.4  Definitions

Customer Distribution Centre (CDC): Central warehouse with its own range and stock dedicated to prepare and organize central customer deliveries.

Direct Delivery supplier: Direct delivery from supplier stocks to transport service providers or directly to the customer. i.e: Direct Delivery sofas or Worktop.

Transport Service Provider (TSP): Service provider contracted by IKEA in order to deliver goods to the IKEA Customer’s home or to a pick up point. The TSP can perform both Local and Central Customer Deliveries

Local service centre (LSC): A TSP warehouse (hub)

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 (LCD): 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 (CCD): 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.

2  One order - One delivery

2.1  Rule description

It is strongly recommended that the customer receives all products ordered in one delivery. This will secure that the customer receives the best possible service, that we give a commercial and professional image of IKEA and do not generate additional costs for customers.

The “One order – One delivery” rule must however at times be adapted in response to local market conditions. In case of applying the opposite rule (multi-deliveries), there shall be a substantial positive cost impact for IKEA and/or the Customer. Cases where the “One order – One delivery” rule is not applied must be strictly monitored.

2.2  Exceptions

The following are the only possible exceptions to the rule “One order – One delivery”:

2.2.1  Happy flow

·  DDS sofas

·  DDS Worktops under the prerequisite that the different deliveries arrive at the customer within 48 hours of each other. For stone worktops the time can be longer if the customer is supplied with an interim solution.

·  Delivery mixing an (In-door/Front-door) truck delivery with a (Front door/Pick-up point) parcel delivery. Excluded from this are articles that are required to maintain the functionality of the product i.e. a door, hinges and knobs. It should also be secured that the deliveries arrive to the customer within 48 hours of each other.

·  Multi-parcel orders can be split in more than one delivery provided that the payment flows can be handled. It should also be secured that the deliveries arrive to the customer within 48 hours of each other.

·  Order with a mix of CDC range and Store range articles.

2.2.2  Unhappy flow

In cases where IKEA or any party contracted by IKEA is responsible (delayed articles, sales stop, outgoing articles etc.), the customer can be given the choice to be delivered in one or more deliveries. The customer shall not be additionally charged for this.

This statement is mandatory and no country shall refuse the customer this choice.

2.2.3  Other exceptions

To customers that request multi-deliveries IKEA shall offer this service. All additional costs are to be charged to the customer.

2.3  Costs charge

Following principles should be respected in order to define the charge of the costs:

·  Customers shall not have a negative financial impact when IKEA decides to separate one order in multi-deliveries.

·  Delivering DDS articles in separate delivery should not generate an extra freight cost for the customer.

·  If an order split is needed for an unhappy flow, the generated costs have to be solely charged to IKEA. (2.2.2)

·  An order split requested specifically by the customer shall, as a consequence, result in an extra transport charge to be paid by the customer (2.2.3). The additional amount to be paid by the customer is to be defined by each country.