IKEA (Lawson M3 Enterprise Management System)

IKEA Components, the wholesale division of IKEA group which is engaged in development and distribution of raw materials, materials and components for products of IKEA completed the next stage of the long project on optimization of the implemented business applications, in particular the used Lawson M3 ERP system. The project is performed by means of the module Lawson Opportunity Analyzer.

The solution Lawson Opportunity Analyzer is a tool for modeling which allows to lose and analyze different scenarios of development on the basis of financial and operational data. The module allows to reveal possibilities for implementation and improvement of business processes and also to formulate strategic business objectives and to transfer them to the operational level.

IKEA Components broke work with a system into stages (iterations). Each iteration includes approximately identical set of steps. The first stage was started in August, 2004. Originally in a system the business process model "was made as is", the directions for activity improvement are selected, the system of key performance indicators (KPI) is developed and desirable values for these indicators for two-three years ahead are set (planning development perspectives, the company worked three scenarios – conservative, aggressive and preferable). Based on these data, those processes which should be overworked for achievement of effective objectives were revealed (including implementation of these business processes in the ERP system). Further monitoring of the set indicators and comparison of data with control values is conducted.

In November, 2007 in the company started implementation of the second iteration of the project. In the future in the companies are going to start the next such iteration of times in two years.

Such approach to optimization of the activity allowed the company to raise the service level of the clients and profitability of business. At the completed stage by the customer improvements in the field of ensuring availability of required materials and products, reductions of number of claims and complaints of clients and also reduction of time for order processing, by carrying out inventories and by installation processes of the prices were especially mentioned.