Ikea expects supply problems to last well into 2022

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The Swedish furniture giant is chartering additional ships, buying more shipping containers, putting more effort into rail transport and moving goods between warehouses to mitigate the effects of the global logistics crisis.

 

Shortage of raw materials

Ikea will also reduce the number of versions of some products as it is grappling with raw material shortages. In this way, the retailer wants to ensure that the most popular items remain available.

 

"It has been difficult in the past year to keep all Ikea stores and warehouses open", is what Belgian newspaper De Tijd wrote when quoting CEO Jesper Brodin. "We saw a significant drop in product availability, and this will continue for some time into the 2022 financial year."

 

Currently, the biggest challenge is getting goods from China. That is where about a quarter of all Ikea products are made. The retailer's North American branches have been hit hardest by the shortages. To avoid disappointing its customers, the retailer is temporarily removing unavailable products from its websites and showrooms, writes Reuters.

 

Unprepared

Brodin said no one at Ikea had anticipated the current global supply chain crisis and that they must be prepared for unexpected supply fluctuations in the future.

 

By chartering more ships, buying additional shipping containers and resorting to rail transport from China, the furniture giant aims to limit disruptions in its supply chain as much as possible. This will undoubtedly lead to even more delays for smaller retailers, who cannot afford to buy their own ships.

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