One of Powered by People’s major initiatives was the launch of our ShipSmart consolidated-shipping program, in which we group orders from multiple makers into a single shipping container destined for a single port. It’s a more efficient, more cost-sensitive, more environmentally-sensible way of getting a product from Point A to Point B, for both makers and buyers. But it’s not without complications. To help us solve some of them, we turned to IKEA (which knows a thing or two about global shipping challenges) and its involvement with Dela Programme, a global accelerator that helps social entrepreneurs develop impact and scaling strategies.

Recently, we spoke with not one but three representatives from IKEA to learn more about how they lend their support to mission-driven startups like Powered by People.

There must be countless organizations that come knocking on the IKEA Social Entrepreneurship door. How did you get involved with Ashoka and the Dela Programme? 

Åsa Skogström Feldt, Managing Director and spokesperson at IKEA Social Entrepreneurship:

We partnered with Ashoka to co-create the Dela programme because we both believe that social entrepreneurship—the concept of an innovative solution to a social problem in the hands of an exceptional entrepreneur—is one of the keys to addressing societal challenges and creating a better everyday life for those who need it most. And Ashoka’s vision of “everyone a changemaker” aligns with and supports IKEA’s vision “to create a better everyday life for the many people,” as well as our belief that everyone is a talent. Plus, Ashoka’s focus on systems change was (and continues to be) an interesting approach for us to explore when considering different types of programs and ways to support social entrepreneurs. 

As a separate entity within the Inter IKEA Group, we (IKEA Social Entrepreneurship B.V) can make independent decisions that allow us to address important social issues in a wider way, than if we were inside the business. It also means we can take a longer-term approach to impact. 

What’s the most valuable thing IKEA Social Entrepreneurship is able to bring to the table?

Åsa Skogström Feldt:

The expertise of our large community of co-workers. Each entrepreneur is matched with one or several IKEA co-workers, who provide guidance and mentorship on specific business needs. We also provide access to funding and, as part of the IKEA system, we’re able to open doors for entrepreneurs in our programs to our global network of suppliers and partners. 

How do you measure success when it comes to IKEA Social Entrepreneurship’s involvement with Dela and brands like PBP?

Åsa Skogström Feldt:

Our mission is to enable a better everyday life of people from vulnerable and marginalized communities. So a measure of success in our programmes like Dela is the number of lives positively impacted by the social enterprises in the programme. This could be within the enterprise itself, such as the number of jobs they create, or through the target groups they serve, such as people with disabilities, women or refugees and migrants. Another important element we consider is how much value the entrepreneur feels we’ve added through co-worker mentoring, funding, and other support. 

Okay, let’s talk logistics. What can PBP learn from IKEA about shipping, in general, and the notion of consolidated shipping in particular?

Umut Bakin (Category Operations Manager Transport):

IKEA is often studied in supply chain-courses as a leader on issues of shipping. We are a volume-driven company where we buy in big volumes from our suppliers to reduce the prices for our customers. Ocean transportation is the most suitable way of transporting large amounts of cargo over long distances. We have the supply chain in mind at the very beginning of the product life cycle, creating our products while already thinking on an efficient flat-pack design so we reduce the shipping volume by as much as possible.

Last, but not least, we use optimization algorithms to achieve the most efficient network. We look into co-loadings, consolidation points close to our suppliers, or distribution centers in the most optimal locations—all of this helps us to reduce shipping distances and costs.