Ikea

Fleet operations, driving behavior, and fuel economy are the areas that were improved significantly after several technology solutions underpinned by 360locate were introduced.

The Cause

IKEA works with thousands of organizations across the Middle East, delivering a wide range of ready-to-assemble furniture, kitchen appliances, and home items across the Gulf countries. These services cover everything from collections, assembling, distribution, and consecutive order management logistics. The company strives to promote excellence through continuous improvement.

Milestones

IKEA established KPIs in the following areas – compliance and improvement of delivery operations, driver behavior monitoring, vehicle utilization, and maintenance.
A first step towards these targets became the fleet and driver efficiency program using the driver behavior system of 360Locate. The system provided real-time performance feedback, sending notifications over inefficient driving, or breaking of speed limits.

Performance benchmarks were established that tracked the in-and-out of geofence movement of the vehicle, compared planned vs actual routes of the vehicle, and monitored the way the vehicle was being handled by bringing in the fuel and the speed data from the unit.
This created a comprehensive approach across IKEA dispatching unit, which helped to deliver the right information to people at the right time, and enabled smarter management decisions. Up to this point, it also provides a level of detail that makes it easier to address the root causes of any performance issues with individual drivers. Furthermore, the business intelligence provided by Fleet Health app ensured that all devices are reporting at the right time. And, in case of errors, alerted the operations team to do the necessary adjustments. This way we made sure that IKEA is supported proactively.

Solution

IKEA identified the lack of central control over its fleet operations and order management logistics. IKEA struggled with the lack of visibility into the activity of its 750-strong fleet, made up of 480 delivery vans and 270 HCVs. It recognized a need to improve awareness of the vehicle’s whereabouts at various stages of order management, and at the same time monitor the utilization of expensive vehicles to reduce TCO.

Result

As a result of this implementation, the fleet operating costs have also been substantially reduced following a 12.7 percent improvement in fuel efficiency, and a 37% improvement in driver awareness and management. In a boost to road safety, incidents of speeding have been virtually eradicated. The company has benefited through a 30% increase in collections and accurate ETAs. This increased customer satisfaction rates for IKEA, which is the main purpose of any business.