For five decades wood has been used to make a pallet in order for companies to ship supplies of all sorts. Recently Ikea has chosen to replace their wooden pallets with a paper variant that is much lighter, thinner, and according to the company cheaper to use. As pictured above, on the left is a picture of a wooden pallet that weighs approximately 55 pounds, and the paper variant one on the left weighs approximately 5.5 pounds, but the life span of the paper pallet is only one trip. Ikea sends inventory all over the world to 287 stores in 26 countries. They will cut their transport costs by 10 percent and these cardboard pallets can support 1.650 pounds which is the same as a wooden one. Also for Ikea weather is not an issue because their pallets don't sit outside for any extended period of time. Therefore the cardboard will not get wet and fall apart.
The pallets will be made on site by Ikea's 1,200 global suppliers and will only be used once and then they will be recycled. Ikea plans that this process will be a start in making our transportation systems better and smarter and the freight will be compacted. I believe the outcome of this in the long run will be positive. I also believe that Ikea is trying to practice sustainable business practices. This is defined as practices that meet current needs of businesses without compromising the needs of future generations. Ikea is trying to make things easier and less costly for their company now, but it also applies to future employees and also the next generation. Hopefully using the cardboard and being able to recycle them will allow for more "going green."
Ikea is also performing an organizational change; the movement of an organization from one state of affairs to another. The article doesn't state how long this change has been in the works; but this is a process that will take over pretty quickly. Ikea will completely switch over to the paper variant pallets on January 1st. The best way change can happen is letting go of the old ways and adjusting to whatever new is implemented. In my personal opinion it won't be too difficult to switch over to new pallets for employees. There will be some explaining and learning that will need to take place because these new pallets have to be stacked a certain way, but overall it will be pretty easy. I am unsure as to how employees will take to this change. I would assume it will not cause any negative feelings about job satisfaction or organizational commitment. This change is a good one in my opinion.
What do you guys think about Ikea switching their pallets? Will the employees have any negative effects? Will Ikea's idea work or do you think they should stay with the wood pallets? Possibly find another material to use besides wood and cardboard?
Tara Tolomeo
By looking at the photos above, my suggestion would not be to switch from wooden pallets to carboard. One just looks way more flemsy than the other. Ikea works with products that are normally heavier and I dont see the cardboard being sturdy enough to handle the products.
ReplyDeleteHowever, I'm sure they have tested this theory before completely getting rid of the wooden pallets. I think that if it saves money and makes more economical sense then I agree. I am glad that Ikea realizes that to survive in changing times and changing economy they must also change and or adapt.
Wood is a sturdy material and would last longer under certain weather conditions. Even though they dont plan on using the pallets in the rain if a flood occurs (anything is possible) they should be prepared.
Raymi Smith
Any idea that can cut down costs, and potentially be more sustainable, in my opinion can only gain employees support. I cannot see this change affecting any employees commitment. If this certain change were cutting jobs, I could understand employees being upset and losing their organizational commitment. What kind of effects do you guys think that a negative change could have on the company and it's employees?
ReplyDelete-Lauren Brooks
I agree with Lauren. I believe that this sort of change will not negatively affect the employees. If it was a bigger more extensive change then there could be possible negative effects. Things like person-job fit, task identity, task significance, and autonomy. These are things that are important for an employee to have job satisfaction. In a situation like Ikea's though I don't think they have to worry about these issues.
ReplyDeleteDo you think there are any other negative issues that could arise?
Tara Tolomeo
I do not see how switching from wood to cardboard would make a difference. I personally would not chose cardboard but I do see how this can help the company save money. I agree with Lauren and do not see this affecting employees. I think in a small way this could benefit employees depending on how Ikea uses the money they save. This can go towards better facilities and bonus. I think saving money and being able to help the earth as Tara stated in her original post would be a great direction for Ikea to go in.
ReplyDelete~Apollonia