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Some 11,700 Irish customers have been left waiting for goods ordered from Ikea as the furniture giant experiences supply chain issues. The Irish Times reports

Some 11,700 Irish customers have been left waiting for goods ordered from Ikea as the furniture giant experiences supply chain issues. The Irish Times reports that the retailer has blamed Brexit and Covid-19 for the disruption. Customers in Ireland report their orders have been cancelled, though Ikea said it has not fully cancelled any orders. The Swedish retailer, which has two stores in Dublin, said deliveries had been affected by Brexit and the pandemic and apologised to customers. In total 11,700 customers have been affected, of which 60 per cent will be minor delays, a spokesperson said. One Dublin customer was informed by email this week she would not be receiving her delivery, days after it had been due to arrive. The email from Ikea said: Were sorry to have to tell you that something went wrong with your order Unfortunately, the items on your order are no longer available and we do not have a future supply date for the stock. Regrettably, we have therefore had to cancel your order A full refund will go back on your payment card within the next 14 days. Another customer said her online order had been cancelled as it did not arrive at the expected date. Upon calling Ikea, she was told the retailers distribution centre for Ireland is in England and that it is suffering inventory problems and other delays. A third customer, who said she paid 2,000 for furniture, was later informed that it was in a port somewhere Ikea said it was now working with its supply chain to increase product availability, capacity and the number of suppliers sending goods to Ireland. Our global supply chain, including the ports and goods terminals, where products are received have been impacted by the cumulative effects of Covid-19 and our product availability has been impacted as a result, a spokesperson said. The spokesperson added that changes in regulations as a result of Brexit had exacerbated delays out of our control. The group said all shipments originally scheduled for delivery between January 5th and 17th had been affected. Ikea said it was working to resolve recent challenges and investing millions of euros in its systems, services and staff. The retailer said it has witnessed unprecedented demand during the pandemic as people were forced to live and work at home. 

a) Based on above article, determine TWO (2) caused of the disruption that is faced by IKEA in Dublin.

 

b) Discuss FIVE (5) risks mitigation strategy that can be use by IKEA in handling above disruption. Support your answers with examples.

 


 


 

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a Based on the article two causes of the disruption faced by IKEA in Dublin are 1 Brexit Impact on Supply Chain Changes in regulations due to Brexit have exacerbated delays in the supply chain With Ir... blur-text-image

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