Supply chain management: Ikea has a Buy Back & Resell service that allows customers to return their IKEA furniture in
good condition and receive a refund card to spend in their stores. This is part of IKEA’s sustainability
drive to become climate positive by 2030 and to give a furniture a second life. The processing of
return of goods, however, is outsourced by IKEA. There are a few 3PL companies that specializes in
managing return services and refurbishing furniture on behalf of the manufacturer.
5. Based on Chapter 6, what kind of returns business model does IKEA use to manage the reverse
logistics? Explain.

Question

Ikea has a Buy Back & Resell service that allows customers to return their IKEA furniture in
good condition and receive a refund card to spend in their stores. This is part of IKEA’s sustainability
drive to become climate positive by 2030 and to give a furniture a second life. The processing of
return of goods, however, is outsourced by IKEA. There are a few 3PL companies that specializes in
managing return services and refurbishing furniture on behalf of the manufacturer.
5. Based on Chapter 6, what kind of returns business model does IKEA use to manage the reverse
logistics? Explain.

liv da · Accepted Answer

IKEA uses Open-loop business model because a 3PL company/operator, is responsible for the return
logistics of furniture.

Supply chain management

IKEA uses Open-loop business model because a 3PL company/operator, is responsible for the return logistics of furniture.

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