Ikea assembles new systems to boost online sales

Furnishing group hopes to improve its multichannel offering via new supply chain systems

New CRM, sourcing and distribution platforms will be deployed

Furnishing group Ikea hopes to improve its multichannel offering via the rollout of new supply chain systems.

An entire new system portfolio is under development and includes new sourcing and distribution platforms, as well as customer relationship management (CRM) software.

The revamp is expected to boost Ikea's online shopping facility, which was launched at the end of 2006 under a phased implementation intended to review the resilience of different parts of its underlying infrastructure.

"We did not want to take a big-bang approach like other retailers did. Our aim was to ensure that systems covering areas such as logistics could cope with the demand," said Ikea's head of online shopping, Adri Kraa.

But joining up Ikea's different sales platforms still remains a challenge, said Kraa.

"Integrating the online operation with the existing platforms to offer a seamless proposition across all channels is a very complex task. Many retailers are still looking at ways to improve that area and we are also on that journey, " he said.

Earlier this year, Ikea introduced a 3D planning tool to allow space customisation with its products over the web as part of a set of initiatives intended to improve its online shopping channel.

At the back end, it implemented a delivery tracking system at its central distribution centre in Peterborough, which allows visibility of stock movement from the warehouse to to the customer, including any returned goods.

"In the current economic climate, businesses will need to focus on retaining strategies rather than attracting new customers and efficient use of technology plays a key role in achieving this," said Kraa.

Kraa was one of the speakers at the ARC Retail Conference, which took place this week.