11. Processes and Operations Cases

In order to lower logistics costs and increase efficiency in its transportation and warehousing operations, IKEA started an internal competition to reduce unnecessary air in their product packaging. This “Air hunting competition” focused on removing as much air as possible from packaging and thereby increasing true product volume during transportation and storage. Several IKEA products were identified for packaging development, one being the Glimma tea candle that is described in this best practice documentation. The development of the Glimma tea candle packaging resulted in a 30% increase in products volume for each load unit. Thanks to this packaging development, the efficiency of the transportation and warehouse operations is now much greater and the impact on the environment has decreased significantly.