Semester Project GR 4

Semester Project (SPV1)
By: Violeta Pirtac, Cristina Frunze, Kamil Klimek
VIA University College
18 December 2020
Semester Project (SPV1)
The bachelor Degree in

Value Chain Management
Author/s: Violeta Pirtac, Cristina Frunze, Kamil Klimek

Assignment: SPV1
Supervisor: Pia Weber Pedersen
Characters: 48,329
Submited: 18 December 2020
List of Figures, Tables, and Graphs
___________________________________________________________Page
Figure 1: Stages in the data preparation process
Figure 2: Report
structure…………………………………………………………………………………………………
……..3
Figure 3: A simplified View of JYSK’s Supply Chain
Figure 4: Labels of OEKO-TEX
Figure 5: Distribution Center ULDUM
Figure 6: Legend for the shapes:
Figure 7: Process mapping at the Distribution center Uldum
Figure 8: Importance of switching to multi-channel marketing
Figure 9: Blue ocean strategy in points
Table 10: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3
Graph 11: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3
Table 12: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3 by quarter and index
number
Graph 13: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3 by quarter
Graph 14: Online orders at JYSK shipped in Denmark year 2020 Q1-Q3 by month
Table 15: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3 by month and index
numbers
Graph 16: Online orders at JYSK shipped in Denmark years 2019-2020 April by days
Figure 17: List of Holidays in Denmark in 2020
Graph 18: Nr. of infected covid-19 in Denmark year 2020
Table 19: Nr. of infected covid-19 in Denmark year 2020 and index number by months vs. Online
Orders at JYSK 2020 Q1-Q3 and index number by months
Graph 20: Infected covid-19 index number VS JYSK online orders index number, Denmark 2020 Q1-
Q3
Figure 21: Structure of product services at JYSK in Denmark years 2019-2020 Q1-Q3
Table 22: Product services at JYSK in Denmark years 2019-2020 Q1-Q3 in online orders
Table 23: Product services at JYSK in Denmark years 2019-2020 Q1-Q3 in L, volume
Graph 24: Home delivery service for online orders by months per years 2019-2020 at JYSK in
Denmark
Graph 25: Normal private package service for online orders by months per years 2019-2020 at JYSK
in Denmark
Graph 26: Delivery to pick-up point service for online orders by months per years 2019-2020 at JYSK
in Denmark
Graph 27: Normal business package service for online orders by months per years 2019-2020 at JYSK
in Denmark
Table 28: Online orders for B2B by delivery company
Table 29: Average of weight and volume for online orders at JYSK 2020 Q1-Q3 per service offered
by the different transport companies
Figure 30: Delivery destination for online orders covered by Danske Fragtmænd 2029-2020 Q1-Q3 in
Denmark
Table 31: Number of weekly online orders at JYSK 2020 Q1-Q3 per different transport companies
Table 32: Shipment of online orders at JYSK 2019-2020 Q1-Q3 provided by Danske Fragtmænd
Diagram 33: Shipment of online orders at JYSK 2019Q1-Q3 provided by Danske Fragtmænd
Diagram 34: Shipment of online orders at JYSK 2020 Q1-Q3 provided by Danske Fragtmænd
Table 35: Shipment of online orders at JYSK 2020 provided by Danske Fragtmænd in week 25
Table 36: 6 groups based on distance calculation
Table 37: Distribution and development of online orders by distance groups per years Q1-Q3
Figure 38: Structure of online orders distribution by distance groups years 2019-2020 Q1-Q3
Figure 39: Regional distribution of online orders in group nr.4 (201-300 km from DC Uldum) year
2020 Q1-Q3 by postal code
Table 40: Development of online orders by Product service in group nr.4 (201-300 km from DC
Uldum) per years Q1-Q3
Graph 41: Development of online orders by Product service Normal Private Package in group nr.4
(201-300 km from DC Uldum) per months YEAR 2019-2020 Q1-Q3
Graph 42: Development of Normal business package in the distance group 4 (201-300 km from DC
Uldum) years 2019-2020 Q1-Q3
Figure 46: Distribution of JYSC stores in regions (108) vs online orders and population density in
Denmark
Table of Contents
___________________________________________________________Page
1.Introduction........................................................................................................................................1
1.1. Problem formulation............................................................................................1
1.2. Clarification of concepts – Data handling...............................................................1
1.3. Report structure...................................................................................................2
2.Analysis and findings.........................................................................................................................4
2.1. The current supply chain for JYSK in Denmark.............................................................4
2.1.1. The concept of supply chain..................................................................................4
2.1.2. A simplified View of JYSK’s Supply Chain..............................................................4
2.1.3 Subconclusion.....................................................................................................8
2.2. The existing cross channel market strategy for JYSK, and what are the expectations for the
future in terms of shift from shops to online in Denmark............................................................9
2.2.1. Significance of cross-channel marketing........................................................................9
2.2.2. Changes in future of retailing......................................................................................10
2.2.3. Current cross-channel strategy of JYSK......................................................................10
2.2.4. Blue ocean strategy for JYSK.......................................................................................11
2.2.5. Subconclusion..............................................................................................................12
2.3. How does JYSK logistics develop from 2019 Q1-Q3 to 2020 Q1-Q3 on online sales in
Denmark............................................................................................................................ 12
2.3.1. Development of JYSK`s online sales identifying the potential impact of COVID–19...12
2.3.2. Subconclusion..............................................................................................................24
2.4. What is the development and distribution of orders in regions by postcodes....................25
2.4.1. Distribution and development of orders in regions by postcodes.................................25
2.4.2. Subconclusion..............................................................................................................30
3.Conclusions and recommendations...................................................................................................30
3.1. Conclusions..........................................................................................................................31
3.2. Recommendations................................................................................................................32
Bibliography........................................................................................................................................33
Appendix 1: Project description

Appendix 2: Group contract
Appendix 3: Competences matrix
Appendix 4: Value tree
Appendix 5: Excel dataset
Group4 :Violeta Pirtac, Cristina Frunze, Kamil Klimek
______________________________________________________________________________
1. Introduction
JYSK, one of Europe’s leading furniture retailers, is Danish company founded by Danish citizen Lars
Larsen in 1979 in Aarhus. His primary intention was to provide all customers with a great offer,
which is nowadays provided for example by’ ’everyday low price’’ program. JYSK’s goal is to get
closer to its customers and every week, new JYSK store is open.
Nowadays, JYSK has more than 2937 stores in Europe, Asia, South Africa, and Australia. Most stores
are in Germany (967), Poland (236) and Sweden (149). Denmark is on 4 th place with 109 stores across
the country. JYSK’s revenue for financial year 2019/2020, which lasts from 1. September 2019 to 31.
August 2020, has been 4,1 billion EUR (Editor Rune Jungberg Pederson, 2020). When comparing
with former financial years, there is an increasing tendency and studies indicate that this trend will
continue at least until 2023.
COVID-19–19 put a lot of pressure on JYSK online. Stores in many countries (Germany, France,
UK, Ireland, Belgium) were totally closed and sales shifted to online. From the end of Murch to the
beginning of June, JYSK hired 200 new colleagues for DCU to handle this growing online.
Even logistics is a very big and important element in the JYSK`s supply chain and represents a core
value, and the company invest much in it, there is not enough capacity and need to be adjusted. DCU
was designed in 2008, when online business was not so big. Now, when online sales is about 10%
from turnover, DCU is much more ineffective then just make big pallets to stores. When delivering
online, the obligatory supporting activity is to pick the item out of the box, put into a new box, mark
with a label, and after to send it out. Delivering online involves more costs and is more ineffective.
That is why it is important in this semester project to make an analysis and to come with
recommendations on how JYSK to comply with the growing online market.
1.1. Problem formulation
How can JYSK form their future cross channel supply chain strategy to comply with the growing
online market in Denmark in 2021?
1.2. Clarification of concepts – Data handling
Collected data for Denmark such as GDP, population, infected covid-19 and even original JYSK data
about online sales from 2019 to 2020 Q1-Q3 in Denmark take the form of time series. Values of these
data are on annual, quarterly, monthly, or daily basis, and in this project, there is an interest in
analyzing the rise and the fall of them, identifying trends and relationships over time. That`s why here
index number (IAN JACQUES, 2018, p.204) will be used.
The original JYSK data (online sales from 2019 to 2020 Q1-Q3) – Master Data, does not include
shipments to JYSK Stores, and includes B2B and B2C shipments from the DC in Uldum, shipments
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to retailers, separated in two Excel files by years. To analyze, prepare and to present this information,
data for year 2020 will be appended to data for year 2019, and will have a total number of lines
356.566. as can be seen below in the Figure 1.” Stages in the data preparation process”.
Figure 1: Stages in the data preparation process
Source: Own production
When go through these two stages step by step: first stage (removing duplicates) - deducting 69 rows,
there will be 356.497, and the second stage (cutting lines liked to Q4) - deducing 3424 rows, the
prepared dataset will contain 353.073 lines. One line means one shipment order that can be initiated
by sales orders from JYSK e-com platform or JYSK store for delivery.
1.3. Report structure

The Report structure it is shown below in Figure 2.
The Project`s Introduction makes an elegant description of the case company that is JYSK Group:
when, where, and how JYSK began, some facts about what JYSK represents nowadays. After,
describing how situation changed for JYSK when covid-19 emerged.
The main part of the project is chapter 2. Analysis and findings. Here methods and models will be
used to answer the four research questions: 2.1. The current supply chain for JYSK in Denmark, 2.2.
The existing cross channel market strategy for JYSK, and what are the expectations for the future in
terms of shift from shops to online in Denmark, 2.3. How does JYSK logistics develop from 2019 Q1-
Q3 to 2020 Q1-Q3 on online sales in Denmark, and 2.4. What is the development and distribution of
orders in regions by postcodes from 2019 Q1-Q3 to 2020 Q1-Q3 in Denmark? Each question has
subquestions and a subconcluison.
Chapter 3. Conclusions and recommendations recap the argumentation and deliver an answer to the
question raised in the beginning of the report, in the problem formulation.
All tables, graphs, and figures used in the report are listed in the List of Figures, Tables, and Graphs,
constructed according to the same principle as the Table of Contents.
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At the very beginning of the project there is a Front page, as well as a Title page. At the other end of
the project are Appendices (includes 5 Appendices) and Bibliography (a complete list of literature,
showing all the sources used).
Figure 2: Report structure
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2. Analysis and findings
The main part of the project is chapter 2. Analysis and findings. Here methods and models will be
used to answer the four research questions.
2.1. The current supply chain for JYSK in Denmark
In order to analyse the current supply chain of JYSK, one would need to use different tools and
instruments to define the characteristics of the industry the company is placed in, economic factors
and developments of the market and regions.
2.1.1. The concept of supply chain
The concept of “supply chain” is identified by academic literature as the alignment of firms that bring
products or services to market (Lambert, Stock and Ellram, 1998). The notion of supply chain
includes manufacturers, suppliers, transporters, warehouses, wholesalers, retailers, other
intermediaries and even customers themselves. (Felea and Albǎstroiu, 2013).The flow of goods in the
JYSK supply chain follows model of going from the Supplier to the Manufacturer, then to the
Distributor, then to the Retailers and finally achieves its destination to the consumer.
2.1.2. A simplified View of JYSK’s Supply Chain
Figure 3 provides a simplified View of JYSK’s Supply Chain which emphasis how the company is
linked in with the operations of suppliers, distribution, and customers.
Suppliers
The supplier of JYSK must be responsible for their products because JYSK assigns a special attention
for the quality of products and tries to implement and use a vast range of products certificated from
FSC. (JYSK, 2020). People want a high level of quality, and a safety product, for suppliers of JYSK
this becomes a challenge. As part of the ongoing effort to protect the environment and customers
JYSK introduces MADE IN GREEN and STANDARD 100 on textile products (Figure 4). JYSK
customers have been safe from harmful levels of chemicals in the textile products, as all textiles in
JYSK live up to OEKO-TEX’s requirements(OEKO-TEX, 2020).
Because of JYSK has a wide diversification of products which for their manufactures have to contain
much components and JYSK has lot of suppliers in the field such as ( wood, textile, glass, silicon
rubber, plastics, iron, glue, paper etc) these suppliers are part of the second- tier supplier. The first-tier
suppliers are Actona Company A/S, SCANCOM INTERNATIONAL, SCHOU COMPANY A/S.
Actona Company is a global furniture supplier and it deals with designs, produces, and delivers
quality contemporary furniture to furniture retailers including JYSK. Another fist supplier is
SCANCOM which produces garden furniture for JYSK group. It is characterized that being high
standards of quality and social responsibility. SCHOU is one of the leading wholesalers for the retail
industry in the Nordic region.The company produces products like home and kitchen, outdoor, garden
and leisure.(Schou, 2020) All shareholders transfer the company to the former minority shareholder
Jørgen Schou and Lars Larsen who is the founder of JYSK. Lars Larsen considers that it is an
investment he makes as a private person and capital investor.(Kruse, 2017)
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Figure 3: A simplified View of JYSK’s Supply Chain
Sources: Own production
Figure 4: Labels of OEKO-TEX
Sources: (STANDARD 100 by OEKO-TEX®, n.d.)
Distribution Center ULDUM
The centrally located warehouse is Distribution Center ULDUM (Figure 5), with a storage volume of
1.43 million square metres, is Denmark's largest distribution centre. Since its completion, all 170
branches of the group have been supplied centrally from here. The three high-bay warehouses alone,
each around 136 metres long, 54 metres wide and 39 metres high, have a wall area of over 42,000
square metres.(Hammersen Elementbau, 2020)
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Figure 5: Distribution Center ULDUM
Sources:(Distribution Center Denmark, n.d.)
- Udlum center, serves as a massive dissemination hub of goods to the stores in Denmark and
outside. Looking at the workflow, the center itself is like a small city that runs flawlessly by
the means of having the following:
- A receipt of goods station – dedicated employees to empty the goods out of containers and
trucks, check in and register the received goods, arrange them accordingly on the pallets,
handle the transportation in the warehouse.
- A picking station – where packing in an undamaged environment the individual goods for
stores is happening. Packaging takes place on time in proportion to the size, creating stable
pallets.
- An online packing station – where sorting and packing of the smaller items ordered online by
customer is taking place.
- Shipping, packaging and internal transport station – where the employees are running the
warehouse, in particular handle the too large items and move bulk pallets around the
warehouse. This is also the last station before the goods depart the warehouse in an efficient
and tightly packed pallet in the trucks.(JYSK, 2020)
Below in figure 7 is a representation of the order-filling process for in stock-items is depicted to

provide an analysis of the process mapping at the distribution center in Uldum.
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Figure 6: Legend for the shapes:
Sources: Own production
Figure 7: Process mapping at the Distribution center Uldum
Sources: Own Production
While the Distribution Centers offer first class services, JYSK is always monitoring developments in
things like pallet systems, digitalization and automation that will enable us to achieve more and better
flow. Automation is the most anticipated change in manufacturing and will ensure JYSK remains at
the cutting edge of technical innovation. (Nigel Wright Group, 2020)
Retailers
B2B
Most typically, the overall volume of B2B transactions is much higher than the volume of business to
consumer transactions. JYSK employs the model of vertical B2B which is generally oriented to
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manufacturing or business usually divided into two directions -- upstream and downstream, JYSK has
a supply relationship with upstream suppliers, including manufacturers and forma a sales relationship.
The role of the distribution centers is imperative to maximising the online opportunity of selling to
both business customers and consumers directly. While B2B is a more complex selling process,
because it has to ensure a more business-oriented approach to different types of businesses from small
to big, JYSK manages to maintain a large network of physical assets, with a seamless customer-
oriented supply chain system that provides a competitive advantage compared to competitors. It’s
very complex system because it does not imply serving only the thousands of own stores but
potentially opening out to millions of customers, those being private or public businesses. (Nigel
Wright Group, 2020)
JYSK pays attention and takes care of the bigger customers that might want to buy in bulk for their
own business. JYSK’s main focus lies on the availability of products during peak times and the
reduction of error rates. The integrated logistics concept with the requirements for clearly structured,
transparent product flows and consistently automated work processes ensure a smooth workflow
within the logistics center.(JYSK Tailor Made, 2020)
B2C
JYSK’s stores all over the world are served partly from the Udlum center, from which shipping is
ensured so that the orders are received on time by the customers. The Danish warehouse operates with
24-hour operation, employees working in several shifts in order not to stop the workflow of
production shipment. (DISTRIBUTION CENTER ULDUM, 2020) In this pandemic period JYSK has
started expanding their possibility in the online market, ensuring safety of customers.
JYSK strives to become the world’s most widespread and profitable chain of stores, according to their
mission statement. They took major steps and entered markets that other retailers have not entered yet,
or where competition is scarce, and investing in modern and new distribution centers around the globe
which will ensure optimal operations of the goods, from the warehouse in shorter times to reach the
shelves of the stores or the customer’s home.
2.1.3 Subconclusion
Moreover, despite covi-19 strict measures, Jysk has proved to be innovative and use the crisis in their
advantage, opening up bigger stores to ensure social distancing, finding new ways to attract customers
through marketing efforts, and virtual celebration and engagement of their customers online.
The supply chain of JYSK, the company’s supply goes from the lowest, basic levels of inventory,
through production in different countries and well thought logistics in order to outperform the local
competitions and take over any markets with their exquisite Danish design furniture and home
accessories and delivering and distributing their products in a chain on an international scale.
The company’s supply is offered 24 hours a day, via online channels with a huge variety of products.
Aside from having an extremely successful supply chain, JYSK is responsible for the well-being of
their employed workforce, but also engages in partnerships and sponsorships and coalitions, this way
creating awareness and more visibility of their brand and products through marketing strategies of the
newest generation. JYSK is always on the move to offer new solutions to the customers in rapid
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timeframes, especially in the times of the pandemic, where the supply chain has to adapt to the new
conditions of work.
2.2. The existing cross channel market strategy for JYSK, and what are the expectations
for the future in terms of shift from shops to online in Denmark
This chapter explains how significant is to run cross-channel marketing for international companies,
principles which should be held and conclusion tailored for segment in which JYSK operates. In
consideration have been taken: amount of shops in Denmark, effort for maximizing presence both in
online and physical sphere and partnership with Google for creating omnichannel experience for
customers.
2.2.1. Significance of cross-channel marketing
’Cross-channel employs multiple, together connected channels to reach customers’ (Adobe, 2020).
Bilcinger et. al. claim that ‘In multichannel, users spend significantly more than monochannel users.
Moreover, multichannel customers are younger, are better educated, and have higher
incomes’(Bilgicer et al., 2015).
Figure 8: Importance of switching to multi-channel marketing
Source: Hill, 2020
’In today's customer-centric environment, a marketer's ability to master cross-channel marketing is

becoming increasingly vital’ (Patel, 2010). Whereas customers are exposed to 3,500 marketing
messages per day (Gibson, 2005), it is vital to create campaigns which will stay in their memory and
will not disappear after few moments. 5 principles of cross-channel marketing written by Adobe are:
‘Know your audience and know their best channels, bridge your online and offline channels, make
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your content available to all teams on all channels, deliver relevant and timely content on your
customer preferred channels and add measurement to your marketing toolkit’ (Adobe, 2020).
Additionally, customers are harder to please than years ago. They demand the same level of comfort
on every channel dedicated for shopping, no deviation from their expectations is acceptable and if
some occurs, loyalty can wanish very easily. So, it is necessary to build a system which will create
tailored promotions for every person recognized by retailer.
2.2.2. Changes in future of retailing
The future of retailing is going to be affected by COVID-19 pandemic. People were forced to shop
online and that caused cheaper, faster, comfortable shopping experience and people got used to this
kind of shopping quickly. Increased popularity of online shopping is proven by increase in demand
for storage space in warehouses (Konotey-Ahulu, 2020).
Customers have much more options when looking for particular goods in terms of design, price and
after-sales service. What should be done is ensure remarkable physical shopping experience and
positive reviews on the internet, so a consistent positive approach from customers’ point of view will
be accomplished.
Whereas visit and payment via an app or retailers’ websites will be a growing part of transactions,
model of shopping will still consider visiting physical shops as an important part of the customer’s
journey. Especially when items belong to category ’’furniture’’, presence and possibility to ‘’come
and try’’ is very valuable and probably crucial for customers. With regard to improvement of
population’s increased technological skill, the most possible scenario is that online shopping will be
expanding, but not every segment of retail will be affected by this progress. JYSK is the one which
will not be affected as much as fashion or electronics retail.
With shift from offline to online, price becomes more important. Most customers are price sensitive
and will rather wait longer for delivery than pay extra fee for within 24 hours delivery. The internet
also provides services for searching products by image, and price difference is becoming more
significant in terms of success.
2.2.3. Current cross-channel strategy of JYSK
JYSK presence is visible on all popular channels. So, people can find JYSK in direct mail
(personalized communication), television, radio, internet, leaflets…From this observation, it can be
said that JYSK has to spend much money on making the campaigns effective. These expenses are
inevitable, as every successful, international company runs multi-channel marketing. Because JYSK
is also engaged in this competition, it is possible to evaluate the effort exerted on competing in a
domestic market.
On 8. December 2020, JYSK offers free shipping to all orders within Denmark together with
reduction up to 60% on few products which are linked with Christmas. On the webpage is integrated
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window which claims that every new subscriber of newsletters, can win 3000kr every month. When
confirming order, we can also choose to accept to subscribe newstletters, but without ability of win
3000 kr. It can be claimed that cross-channel strategy of JYSK is associated with image of JYSK as
company which is always within easy reach and always offering great deal – due to free shipping and
Christmas reduction two weeks before Christmas eve. It is necessary to mention that JYSK uses
personalized direct mail.
Big influence on customers’ choice is done by OEKO-TEX Standard 100 label, which declares
outstanding quality with respect to nature and both animals and people. With presence on all
significant channels, JYSK did omnichannel’s partnership with Google in year 2020 (Græsbøll Buch,
2020). Unfortunately, operating omnichannel is not the only factor for success. Public relations (PR)
are extremely important, but JYSK has not switch-on reviews on Facebook and is not participating in
all of its Trustpilot pages – especially in these, that are shown when ‘Jysk reviews’ is searched.
Unfortunately, Google along with Bing shows reviews without answers and with bad rating on top of
the first page, meanwhile webpage with answers and better rating (3,9 stars) is on the bottom of the
first page. This should be improved as soon as possible.
2.2.4. Blue ocean strategy for JYSK
If a company like JYSK would like to use some kind of paradigm, Blue ocean strategy seems like the
right choice. Because JYSK has been running its shops for 41 years, it disposes crucial source of
differential advantage – data. Their significance can be underpinned by many years which ended with
constantly increased profit 8(• JYSK Group: turnover 2014-2019 | Statista, 2020).
Figure 9: Blue ocean strategy in points
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Source: (Gary Fox, 2020)
According to Grandjean: ‘Blue oceans are markets where the company stands alone without
competitors’ (Grandjean, 2019). If JYSK would like to get more customers to its shops, it would be
wise to consider if food would raise the amount of customers in physical shops. Nowadays,
consuming food in stores is very spreaded and customers like to perceive new experiences, like coffee
with cake in new JYSK coffee corner. Television with a playground for children would also
significantly help parents with seamless shopping. These two ways of raising the amount of visitors
are just two most basic ways to do it. But there is another cruicial step which should accompany these
two decisions - bringing new products to the shelfs.
New products could be inspired by retailers in different countries, which are unknown in the others
and thus new successful product can be set up. Because a lot of chain stores like Normal, Ikea and
many others have their own food brands, JYSK should also start to consider this option. Due to using
blue ocean strategy, the product should be cheap and high-quality. With serving gluten-free,
histamine-free and vegan desserts, JYSK could fill the niche in the market, rise the number of people
attending the shop and performance of the whole business. Overall, it is very likely that new market
entrance will offer this type of service along retailing
2.2.5. Subconclusion
JYSK’s direction has success, what can be verified by rising turnovers and international success.
Creating omnichannel is inevitable step towards future where consistency and tailored behaviour will
be cruicial for retaining favor of customers. Due to amount of shops, JYSK gained advantage in terms
of proximity to the customers. What can be improved are services which are not provided– food retail,
which could be new attraction for both existing customers and passers. Reviews on social sites should
be managed as soon as possible. With JYSK presence all over the world, opportunity to bring ideas
from other parts of the world linked with opportunity of competitive advantage emerges. This is
aimed not only in terms of food but also to all the products related to ’’sleeping and living’’ range.
2.3. How does JYSK logistics develop from 2019 Q1-Q3 to 2020 Q1-Q3 on online sales
in Denmark
In this chapter, Master Data, based on online orders and logistics, will be analyzed to determine how
JYSK`s online sales in Denmark developed from 2019 Q1-Q3 to 2020 Q1-Q3 and to determine the
impact of COVID–19 on them.
2.3.1. Development of JYSK`s online sales identifying the potential impact of COVID–19
JYSK`s online sales in this context means shipment orders that were initiated by sales orders from
JYSK e-com platform or JYSK store for delivery. These sales are expressed through volume(l) and
weight(kg). Below, in the Table 10, can be seen that JYSK`s online sales were grown with 29.969
orders in 2020 comparing with 2019, that is +18,5%. That also can be visualized in the Graph 11.
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But when looking at development on online sales by volume and weight on average, in the same table,
it can be observed that average of volume of online orders decreased, as well as their average of
weight. That means that number of smaller online orders delivered in Q1-Q3 year 2020 increased.
Table 10: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3
Graph 11: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3
When determining how these online orders obtained this growth, will be used a mathematical
approach calculating index numbers. The index numbers have been listed in Table 12 taking as the
base quarter Q1 year 2019. The index numbers show quite clearly that during the considering period,
the most growth +50% has Q2 year 2020. The same can be noticed below on the Graph 13.
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Table 12: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3 by quarter and index
number
Yea r-Qua rter 2 0 1 9 - Q1 2 0 19 - Q2 2 0 1 9 - Q3 2 0 2 0 - Q1 2 0 2 0 - Q2 2 0 2 0 - Q3

Online orders
56281 53485 51 7 8 8 45786 84551 61182
number
Index number 100 95 92 81 150 109
Graph 13: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3 by quarter
Going deeper into analysis, and investigate the month development, using the same approach as for
quarter analysis, can be observed, that the growth started in March, continued in April (maximum
level), and May year 2020 (see Graph 14), That also can be seen in Table 15. The maximal growth
represents April 2020 +179% comparing with base month January 2020.
Graph 14: Online orders at JYSK shipped in Denmark year 2020 Q1-Q3 by month
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Table 15: Online orders at JYSK shipped in Denmark years 2019-2020 Q1-Q3 by month and index
numbers
Yea r/ Month Ja nua ry Februa ry Ma rch April Ma y June July August September
2019 21753 17334 17194 20022 17365 16098 18256 17538 15994
2020 10647 12366 22773 29733 29503 25315 21998 18009 21175
Index number,
100 80 79 92 80 74 84 81 74
2019
Index number,
100 116 214 279 277 238 207 169 199
2020
It is also to be noticed that in 2019 Q1-Q3 index numbers for online sales at JYSK are quite
homogeneous comparing with year 2020 Q1-Q3.
Taking a closer look to online orders at JYSK for April by days, that can be seen below in the Graph
16, it can be observed that on 16th and 28th there were registered the maximal number of online
orders.
Graph 16: Online orders at JYSK shipped in Denmark years 2019-2020 April by days
Comparing these trends with holidays in Denmark in 2020 (see Figure 17) it can be understood that
there is no link between these data. That means that the +179% growth in April 2020 is a consequence
of another factor.
Figure 17: List of Holidays in Denmark in 2020
Source:(Officeholidays, 2020)
That factor is that covid-19 emerged. On the Graph 18 can be visualized how it developed by months.
In the Table 19, when March is the base month for nr. of infected, can be noticed an increase in April
+120%, and big increase in September +285%. The biggest growth in online orders +179% is also in
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April, with a light decrease, and again increases in September +99% (see Table 19 ). It seems that
development of online orders at JYSK repeats the covid-19 wave trend (see Graph 20).
Graph 18: Nr. of infected covid-19 in Denmark year 2020
Source: Own production based on COVID-19 statistics Daily New Cases and Total Cases statistics in
Denmark in 2020 from 27 February to 5 December (Worldometer, 2020)
Table 19: Nr. of infected covid-19 in Denmark year 2020 and index number by months vs. Online
Orders at JYSK 2020 Q1-Q3 and index number by months
Graph 20: Infected covid-19 index number VS JYSK online orders index number, Denmark 2020 Q1-
Q3
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Covid-19 influenced online orders when considering services product structure (see Figure 21).
Services product structure was changed. The major part also belongs to Home delivery (54%) but has
decreased in 2020 by 8p.p, while Normal private pack (19%) and Delivery to pick-up point (24%)
increased by 5p.p and 3 p.p. respectively.
Figure 21: Structure of product services at JYSK in Denmark years 2019-2020 Q1-Q3
Information in Table 22 and Table 23 denotes the fact, that even Home delivery was reduced in
structure in 2020, still has an increase in online orders +5% and decrease in average of volume -3%,
that means more orders of smaller volume. Normal private pack increased by +63%, and as volume
+9%, and Delivery to pick-up point increased by +35%, and as volume +16%. That means more and
bigger orders. Normal business package decreased by -6% but increased as volume by +11%. That
means less orders but bigger.
Table 22: Product services at JYSK in Denmark years 2019-2020 Q1-Q3 in online orders
Online orders 2019 2020 a bsolute va lue growth, %
Home Delivery 9 9 .5 98 1 0 4 .1 0 9 4 .5 1 1 5%
MyPa ck 50 - 50 -1 0 0 %
Norma l erhvervspa kke 5 .7 4 6 5 .4 1 0 - 336 -6 %
Norma l priva tpa kke 2 1 .9 47 3 5 .8 2 2 1 3 .8 75 63%
Pa kkeshop med Drop Points 3 3 .9 81 4 5 .8 8 1 1 1 .9 00 35%
Stykgods 232 297 65 28%
Tota l 1 6 1 .5 5 4 1 9 1 .5 1 9 2 9 .9 65 19%
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Table 23: Product services at JYSK in Denmark years 2019-2020 Q1-Q3 in L, volume
Online ordes a vera ge of volume, l 2019 2020 a bsolute va lue,l growth, %
Home Delivery 1 .1 2 2 1 .0 9 0 - 32 -3 %
MyPa ck 1 - 1 -1 0 0 %
Norma l erhvervspa kke 66 73 7 11%
Norma l priva tpa kke 62 67 5 9%
Pa kkeshop med Drop Points 33 38 5 16%
Stykgods 1 .0 4 2 1 .0 5 1 9 1%
Tota l 711 618 - 93 -1 3 %
Analysis of each type of product services (see Graph 24), shows that in 2019 for Home delivery, the
biggest group, marked with a red star in Figure 21 had a repeating trend with an increase in the
beginning of the quarter and slowly reducing level till the end of each quarter, while in 2020, the
tendence is totally different and can be compared with repeating wave of covid-19 as was described
earlier in this chapter, with a small difference – the maximum level was in May.
Graph 24: Home delivery service for online orders by months per years 2019-2020 at JYSK in
Denmark
The same tendence of repeating covid-19 wave is observed in Normal private package development
(see Graph 25) and Delivery to pick-up point service (see Graph 26), with a maximal increase in April
and May respectively.
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Graph 25: Normal private package service for online orders by months per years 2019-2020 at JYSK
in Denmark
Graph 26: Delivery to pick-up point service for online orders by months per years 2019-2020 at JYSK
in Denmark
COVID-19 has an impact on B2B.
Normal business package, the only product category considered delivered to B2B, has a different
trend when comparing with covid-19 wave. The maximal level for online orders was registered in
March and remained quite stable during the analyzed period (see Graph 27). That can be explained
that businesses reacted to this covid-19 wave, even decreased by 6%, as can be noticed in the Table
22 In the Table 28 can be observed that the only company that provide delivery of B2B category is
GLS Denmark.
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Graph 27: Normal business package service for online orders by months per years 2019-2020 at JYSK
in Denmark
Online orders volume and weight influence logistics. Below in the Table 29 can be seen that:
shipments of small packages were provided by: GLS Denmark A/S (DK)
shipments exceeding size or weight limitation for small packages - by: RTC Transport
Danske Fragtmænd delivered only parcels (big volume around 1000m3 and weight around 100 kg.) to
Læsø and Samsø (see Figure 30).
Table 28: Online orders for B2B by delivery company

Delivery Compa ny, yea r/ Consumer B2 B B2 C Tota l
Da nske Fra gtmæ nd (DK 529 529
2019 232 232
2020 297 297
GLS Denma rk A/ S (DK) 11156 137631 148787
2019 5746 55928 61674
2020 5410 81703 87113
PostNord (DK) 50 50
2019 50 50
RTC Tra nsport (DK) 203707 203707
2019 99598 99598
2020 104109 104109
Online orders, Tota l 11156 341917 353073
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Table 29: Average of weight and volume for online orders at JYSK 2020 Q1-Q3 per service offered
by the different transport companies
Service offered by the Average of Average of Average

different transport Weight Volume per of Coli Delivery company
companies (kg) order (l) per order
Home Delivery 101 1106 4 RTC Transport (DK)
My Pack 1 1 1 Post Nord (DK)
Normal business package 7 69 1
GLS Denmark A/S
Normal private package 8 65 1
(DK)
Delivery to pick-up point 4 35 1
Danske Fragtmænd
Parcel 96 1047 5
(DK)
Figure 30: Delivery destination for online orders covered by Danske Fragtmænd 2029-2020 Q1-Q3 in
Denmark
Læsø Samsø
Source: Adapted from Wikipedia (Wikipedia, 2020)
In Table 31: it is presented development of online orders per different transport company, visualizing
maximal number of online orders delivered in a week, as well as determining the busiest week of the
year. All companies delivered in 2020 more than in 2019, because online orders registered growth,
and busiest week in 2020 was week number 18, that is also in April.
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Table 31: Number of weekly online orders at JYSK 2020 Q1-Q3 per different transport companies
Nr.of Online orders shipped in Denma rk per week/ Yea rs 2019 2020 Tota l
Tota l Nr., inclusiv: 161554 191519 353073
1 .RTC Tra nsport (DK) 99598 104109 203707
2 .GLS Denma rk A/ S (DK) 61674 87113 148787
3 .Da nske Fra gtmæ nd (DK) 232 297 529
4 .Post Nord (DK) 50 - 50
Ma x Nr. in a week 7392 9535 14744
Week` s number 2 18 18
Avera ge Nr.per week 4039 4788 8827
1 . RTC Tra nsport (DK):
Avera ge 2490 2603 5093
Ma x 4359 3805 7755
2 . GLS Denma rk A/ S (DK):
Avera ge 1542 2178 3720
Ma x 3027 5941 7834
3 . Da nske Fra gtmæ nd (DK):
Avera ge 6 7 13
Ma x 17 22 35
4 . Post Nord (DK):
Avera ge 1 - 1
Ma x 48 - 48
Week` s number 1 - 1
When analyzing delivery company Danske Fragtmænd (see Table 32) it can be seen that in 2020 in
the busiest week company delivered 22 online orders and there were handled twice a week.
Table 32: Shipment of online orders at JYSK 2019-2020 Q1-Q3 provided by Danske Fragtmænd
Visualization of these deliveries (see Diagram 33 and Diagram 34), shows, that they do not belong to
busiest hours for DCU, area marked in red.
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Diagram 33: Shipment of online orders at JYSK 2019Q1-Q3 provided by Danske Fragtmænd
Nr. of Online Orders and Time for the shipment orders to be completed ready for shipment in
DC Uldum year 2019, week 29
Hours/
Week Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
5 1 1
6 5 2 2 2 11
7 17 20 25 22 16 1 101
8 39 76 74 59 38 9 295
9 64 88 97 86 66 12 1 414
10 61 89 108 100 74 19 451
11 60 125 112 108 55 15 1 476
12 49 106 123 115 65 14 2 474
13 56 80 108 93 66 11 3 417
14 28 73 116 91 68 6 382
15 27 64 82 56 38 5 1 273
16 25 32 48 52 34 3 194
17 22 31 36 32 30 3 3 157
18 3 16 19 16 7 1 1 63
19 7 18 6 16 6 2 3 58
20 11 3 4 6 4 2 30
21 1 1 3 2 7
22 2 2
Total Orders 469 828 961 859 571 103 15 3806
Diagram 34: Shipment of online orders at JYSK 2020 Q1-Q3 provided by Danske Fragtmænd
Nr. of Online Orders and Time for the shipment orders to be completed ready for shipment in DC Uldum year
2020, week 25
Hours/ Week
Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
4 1 1
6 2 5 7
7 20 30 26 16 21 10 123
8 40 120 121 73 90 85 529
9 27 158 146 120 113 110 2 676
10 28 185 149 100 148 101 5 716
11 32 176 174 121 132 83 9 727
12 23 179 132 86 113 110 8 651
13 28 150 132 104 98 83 5 600
14 34 159 173 120 143 62 6 697
15 21 153 139 103 113 53 3 585
16 31 154 116 90 110 33 5 539
17 12 98 87 65 78 26 3 369
18 6 46 46 26 33 9 3 169
19 4 32 22 14 9 7 6 94
20 2 12 8 7 3 4 2 38
21 2 1 2 4 2 1 12
22 1 1 2
23 1 1 2
Total Orders 313 1658 1473 1050 1208 777 58 6537
When looking at Table 35 it can be noticed, that DCU is highly organized, and in each minute DCU is
very busy.
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Table 35: Shipment of online orders at JYSK 2020 provided by Danske Fragtmænd in week 25
JYSK`s online sales were grown with +18,5%, or +29.969 orders in 2020 comparing with 2019, but
the average of volume of online orders, as well as their average of weight decreased. That means that
number of smaller online orders increased. The growth started in March, attaining the max level in
April, +179% comparing with the base month January 2020. The factor that contributed to that was
the wave of COVID-19. Moreover, the development of online orders at JYSK repeats the covid-19
wave trend (see Graph 18).
Covid-19 influenced online orders in terms of services product structure. Home delivery has an
increase +5% and decrease in average of volume -3%, that means more orders of smaller volume.
Normal private pack increased by +63%, and as volume +9%, and Delivery to pick-up point increased
by +35%%, and as volume +16%. That means more and bigger orders. Normal business package
decreased by -6% but increased as volume by +11%. That means less but bigger orders.
Home delivery, Normal private pack, and Delivery to pick-up point repeats the covid-19 wave trend,
with a maximum level in April (see Graph 24, 25, 26), while Normal business package registered a
decrease by 6%, That can show how businesses reacted to this covid-19 wave (see Graph 27),
Online orders volume and weight influence logistics. Shipments of small packages (Normal private
pack, and Delivery to pick-up, and Normal business package) were provided by GLS Denmark A/S
(DK), while shipments exceeding size or weight limitation for small packages (Home delivery) – by
RTC Transport. Danske Fragtmænd delivered only parcels (big volume around 1000m3 and weight
around 100 kg.) to Læsø and Samsø.
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The busiest week for DCU was week 18, that is also in April, the busiest time on average, for DCU is
the middle of the day and the middle of the week. DCU is highly organized, and in each minute is
very busy
2.4. What is the development and distribution of orders in regions by postcodes
The development and distribution of online orders will be analyzed applying combination between
Receiving postal codes and Timeline criteria. Receiving postal codes will be grouped using distance
calculation from DC in Uldum (postal code nr. 7171 (sending postal code)) to every receiving postal
code.
2.4.1. Distribution and development of orders in regions by postcodes
As can be seen below in the Table 36, online orders from 2019 Q1-Q3 to 2020 Q1-Q3 will be
organized in 6 groups
Table 36: 6 groups based on distance calculation
Dista nce from DC in

Group
Uldume to receiving Goup` s na me
number
posta l code (km)
1 <5 0 gr.1 <5 0 km
2 <1 0 0 5 1 km< gr.2 <1 0 0 km
3 <2 0 0 1 0 1 km< gr3 <2 0 0 km
4 <3 0 0 2 0 1 km< gr.4 <3 0 0 km
5 <4 0 0 3 0 1 km< gr.5 <4 0 0 km
6 <5 0 0 4 0 1 km< gr.6 <5 0 0 km
That grouping will serve as a criterion to divide online orders by postal codes. As can be observed
below, in the Table 37, in group nr,5 there was a considerable growth of 29,1% in year 2020 in group
nr,6 - 27%, and in group nr,4 there was a growth of 21,8%. It is notable, that these three groups
registered a growth rate above the 18,5%, that represents growth rate in total online orders in the same
period.
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Table 37: Distribution and development of online orders by distance groups per years Q1-Q3

The biggest share 46 % belongs to gourp4 (see Figure 38), then group3 22%, group 2 21%, group 5
10%, and group 1 and 6, less than 1%. Analysis starts with group4.
Figure 38: Structure of online orders distribution by distance groups years 2019-2020 Q1-Q3
In Figure 39.it is shown how receiving destinations are placed on the map.
Legend:
< 100
< 1000
> 5000
In 2020 the most deliveries had less than 100 orders per receiving postal code. Online orders delivered
to Copenhagen S were 5548, are more than 5000, and correspond to the biggest circle on the map.
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The product that contributed to growth the most is Normal private package, as can be seen in Table 40
and registered +74% growth. The maximum growth is in April as can be seen in the Graph 41 and
exactly correspond to the first COVID-19 wave in Denmark.
Table 40: Development of online orders by Product service in group nr.4 (201-300 km from DC
Uldum) per years Q1-Q3
Graph 41: Development of online orders by Product service Normal Private Package in group nr.4
(201-300 km from DC Uldum) per months YEAR 2019-2020 Q1-Q3
In the same time, there is a decreasing -17% in Product service Normal Business Package, as it is
shown on the Graph 42.
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Graph 42: Development of Normal business package in the distance group 4 (201-300 km from DC
Uldum) years 2019-2020 Q1-Q3
The same approach will be used when analyzing distribution in other distance groups, except group 5
and 6. These groups are small and have an unsignificant influence on the total orders.
In Figure 43: will be visualized distribution in group3. Most of the receiving postal codes during year
2020 received less than 100 orders, the only receiving postal code 9000, Aalborg, had 2737 orders.
Legend: < 100

< 2000
< 3000
Online orders: 2019/2020

36.768/43.129
Development: +5.452 online orders
Growth: 14%
Product service Normal private
package,
that increased 48 %
the most (or +2.680 orders)
Period when
increased March, April, May
2020
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In Figure 44: will be visualized distribution in group2. Most of the receiving postal codes during year
2020 received less than 100 orders, only receiving postal code 8000, Aarhus C, had 2656 orders. The
situation seems analogical with the group nr.3.
Legend: < 100
< 1000
< 2000
Online orders: 2019/2020

34.040/39.961
Development: +5.921 online orders
Growth: 17%
Product service Normal private
package,
that increased 62 %
the most (+ 2.740 orders)
Period
when increased March, April, May
2020
In Figure 45: Is shown distribution in group 1. Most of the receiving postal codes during year 2020
received less than 100 orders, but there are many of them, such as 8600, Silkeborg, 8700, Horsens,
7100, Vejle, 6000, Kolding that had around 2000 orders.
Legend: < 100
< 1000
< 2000
< 3000
Orders online: 2019/2020

16.688/19.282
Development: +2.594 online
orders
Growth: 16%
Product service Normal
that increased private package,
the most + 52 %
(or +1.117 orders)
Period when increased is March, April,
May
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As it is visualized in the Figure 46, there is a clear link between population density, numbers of online
orders, and numbers of JYSK stores in Denmark. The most populated are urbane areas: Copenhagen,
followed by Aarhus, Odense, etc., and JYSK stores number are placed more in these areas.
Distribution of online orders shows that online orders are delivered on the whole territory, but more
concentrated in the urban areas.
Figure 46: Distribution of JYSC stores in regions (108) vs online orders and population density in
Denmark
Legend: JYSC store in Legend: online orders in

Denmark, total number 108 Denmark years 2020 Q1-Q3,
191519
Source: Own production Source: Own production Source (DENMARK

POPULATION DENSITY
MAP, 2020)
The development of online orders also confirms the covid-19 wave impact. There was a growth of
online orders in all 6 distance groups (see Table 37). Maximum level of growth was in April in all 6
groups, and the product service that registered the maximal level of growth was Normal Private
package.
There is a uniform distribution except urban areas. Most deliveries had less than 100 orders per
receiving postal codes in 2020, deliveries to urban areas such as: Copenhagen S were 5548, Aarhus C,
- 2656, Aalborg, - 2737, Silkeborg, Horsens, Vejle, and Kolding - around 2000 orders, that is much
more.
There is a clear link between population density and distribution of online orders, as well as the
numbers of JYSK stores. The greater population density in regions, the greater number of JYSK
stores and the more distribution of online orders is in Denmark.
3. Conclusions and recommendations
In this chapter will be presented a recapitulation of analysis and findings made in that project that
refers to JYSK case logistics and online orders for the period 2019-2020 Q1-Q3 in Denmark, as well
18 December 2020
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as the impact of this factor, and based on that - recommendations for JYSK in terms of how to comply
with the growing online market in Denmark in 2021.
3.1. Conclusions
As analysis shows, even if JYSK possesses the highest intelligence and control over its distribution of
the products, there are still some challenges arising on the way. One of which is linked to ensuring
that the trucks are always on the move and deliver timely the products. This challenge is even difficult
to solve as it involves the human factor and other factors that are uncontrollable, like nature disasters,
accidents or other situation that might perturbate the timely pick up and delivery of goods from the
distribution center. However, this could be further investigated to find a viable solution on how to
reduce the risk and always have available means of transportation without wasting the time. JYSK
should collaborating with own delivery business, not only with a big company.
JYSK`s online sales were grown with +18,5%, or +29.969 orders in 2020 comparing with 2019, but at
specific way: number of smaller online orders increased. That happened in Q2, with starting growth in
March, attaining the max level in April, +179% comparing with base month January 2020. The factor
that contributed to that was the first wave of COVID-19. Moreover, development of online orders at
JYSK repeats the covid-19 wave trend (see Graph 20), especially for Home delivery, Normal private
pack, and Delivery to pick-up point, while Normal business package registered a decrease by 6%,
That can show how businesses reacted to this covid-19 wave (see Graph 27)
Online orders volume and weight influence logistics. Shipments of small packages (Normal private
pack, Delivery to pick-up, and Normal business package) were provided by GLS Denmark A/S (DK),
while shipments exceeding size or weight limitation for small packages (Home delivery) – by RTC
Transport. Danske Fragtmænd delivered only parcels (big volume around 1000m3 and weight around
100 kg.) to Læsø and Samsø.
The busiest week for DCU was week 18, that is also in April, the busiest time on average, for DCU is
the middle of the day and the middle of the week. DCU is highly organized, and in each minute is
very busy.
The development of online orders in regions also confirms the covid-19 wave. There was a growth of
online orders in all 6 distance groups (see Table 37). Maximum level of growth was in April and the
product service that registered the maximal level of growth was Normal Private package.
There is a uniform distribution except urban areas. Most deliveries had less than 100 orders per
receiving postal code, deliveries to urban areas such as: Copenhagen S were 5548, Aarhus C, - 2656,
Aalborg, - 2737, Silkeborg, Horsens, Vejle, and Kolding - around 2000 orders, that is much more.
That shows a clear link between population density and distribution of online orders, as well as the
numbers of JYSK stores. The greater population density in regions, the greater number of JYSK
stores and the more distribution of online orders is in Denmark. However, that could be subject of
further investigations.
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3.2. Recommendations
There are emerging incentives which need to be considered as possible ways of progress. There is also
possibility of entry new retailer which will serve customers’ needs more accurately and widely. Thus,
all tools used for recognizing customers’ opinions should be used for creating more customer-centric
approach. Inspiration can be found in national and also international level.
As analysis shows, the first COVID-19 wave in April 2020 provoked 18,5% growth in online orders
at JYSK in Denmark, and next waves, that is clear, will have a greater growth, and like in chain will
produce even a greater growth in online orders, and that is why JYSK Supply Chain must be adjusted
to the growth rate of the online marketing channel in 2021.
JYSK supply chain strategy in Denmark in 2021 should consider first E-COM Department, with a
special emphasis on B2C online orders. To maintain a high level of consumer satisfaction, it will be
necessary to increase DCU and delivery capacity for the largest product groups with the greater rate
of growth in online:
Normal private package (volume 65m3, weight 8 kg) with a share of 19% and a growth of +63%,
Delivery to pick-up point (volume 35m3, weight 4 kg) with a share of 24% and a growth of +35%,
Home delivery (volume 1106m3, weight 101 kg) with a share of 54% and a growth of +5%,
Year 2021 represents a short run perspective for JYSK. Decisions to increase capacity in Denmark
with an accent on mentioned online orders will be related to variable factors and
reorganization/adaptation of the fixed factors:
1. Implement or if exists – to adjust to actual needs for online orders in Denmark efficiency
systems (as an example -Kaizen),
2. reorganization/adaptation of warehouse surfaces for Normal private package, Delivery to
pick-up point, and Home delivery
3. increase/adapt existing inventory capacity for Normal private package, Delivery to pick-up
point, and Home delivery
4. adjust/innovate IT system for JYSK E-COM Department for specified capacity
5. increase worker-hours by hiring new temporary/unqualified workers, or by transferring
workers from another department to the E-COM Department, especially for the obligatory
supporting activity of picking the item out of the box, put into a new box, mark with a label,
and after to send it out.
6. growing DCU capacity by growing working hours: adding evening, and night shifts, as well
as weekend shifts, taking into consideration heat DCU diagram
7. increasing delivery capacity by ensuring two transport companies for the same type of
product service (Normal private package, Delivery to pick-up point, and Home delivery)
8. ensuring with adequate transportations in terms of volume and weight for online orders
9. ensuring the required volume of products for online orders based on partnership relations
10. if customer has an intention to by in JYSK store or in online JYSK shop, to make it possible
by steering the customer in JYSK store by a service assistant (installation in JYSK store of a
ring service assistant button), or also in online (to make a booking at settled time for help
assistant)
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In this uncertain COVID-19 environment JYSK could realign cross channel supply chain strategy and
take full advantage of this situation and do its best to meet the needs of online consumers by
delivering the right product, delivery to the right address and in time. Thus, in these difficult times, it
will be able to create value for its consumers and turn them into loyal consumers, only making
necessary adjustment, in short run that refers to increase DCU capacity for online orders.
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Nigel Wright Group, 2020. JYSK expansion with tighter logistics control. [online] Available at:
<https://www.nigelwright.com/uk/jysk-expansion-with-tighter-logistics-control> [Accessed 17 Dec.
2020].
18 December 2020
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______________________________________________________________________________
IAN JACQUES, 2018. MATHEMATICS FOR ECONOMICS AND BUSINESS. 9th ed.
Officeholidays, n.d. List of Holidays in Denmark in 2020. officeholidays.com.
Patel, M., 2010. Achieving Consistency in Cross-Channel Marketing.: EBSCOhost. [online]
Available at: <http://web.b.ebscohost.com.ez-aaa.statsbiblioteket.dk:2048/ehost/pdfviewer/
pdfviewer?vid=4&sid=540f0fad-619e-4aca-9c75-2260cdd8601d%40pdc-v-sessmgr06> [Accessed 16
Dec. 2020].
Recording of JYSK Company presentation!. 2020. Denmark.
Wikipedia, n.d. Samsø - Wikipedia.
T.M.S.C., n.d. TAILOR-MADE SYSTEM FOR MORE. Tailor-Made System for More, Study Case,
2020.
OEKO-TEX, 2020. STANDARD 100 by OEKO-TEX®. [online] OEKO-TEX. Available at:
<https://www.oeko-tex.com/en/our-standards/standard-100-by-oeko-tex> [Accessed 16 Dec. 2020].
Officeholidays, 2020. List of Holidays in Denmark in 2020. [online] officeholidays.com. Available at:
<https://www.officeholidays.com/countries/denmark/2020> [Accessed 7 Dec. 2020].
Cecil C.Bozarth, Robert B. Handfield,2019, Introduction to Operations and Supply Chain
Management, fifth edition,pag.26
Wikipedia, 2020. Samsø - Wikipedia. [online] Available at: <https://en.wikipedia.org/wiki/Samsø>
Schou, 2020. Schou Larslarsengroup. [online] Lars Larsen Group,Schou. Available at:
<https://larslarsengroup.com/schou> [Accessed 16 Dec. 2020].
18 December 2020
34
Appendix 1: Project description
18 December 2020 1
Project
Description
Semester Project 1
VIA University College
11 November 2020
Characters: 10645
18 December 2020 2
BACKGROUND DESCRIPTION
JYSK, one of Europe’s leading furniture retailers, is Danish company founded by Danish citizen Lars
Larsen in 1979 in Aarhus. His primary intention was to provide all customers with a great offer,
which is nowadays provided for example by ’’everyday low price’’ program. JYSK’s goal is to get
closer to its customers and every week, new JYSK store is open.
Nowadays, JYSK has more than 2937 stores in Europe, Asia, South Africa and Australia. Most stores
are located in Germany (967), Poland (236) and Sweden (149). Denmark is on 4 th place with 109
stores across the country. JYSK’s revenue for financial year 2019/2020, which lasts from 1.
September 2019 to 31. August 2020, has been 4,1 billion EUR. When comparing with former
financial years, there is an increasing tendency and studies indicate that this trend will continue at
least until 2023.
JYSK also behaves as a responsible company and most of their wooden products contain FCS label.
From 2024, all of wod used in JYSK products will be FSC-certified. The majority of textiles in JYSK
carry the OEKO-TEX standard 100 label, what means their products are more strict with regard to
health-safety than EU regulation.
Nowadays, more people shop online than ever before. People spend more time connected to internet
and searching for goods has been transferred to digital world. When covid-19 emerged, numbers have
been pushed even higher. Then, even more B2C orders started to be made, which means more costly
and time expensive small packages coming from warehouses to customers emerged.
Companies are constantly investing money in improving customer’s satisfaction, thus spending on
cross-channel marketing strategy is getting bigger. Best known brands invest in omnichannel
marketing strategy, and JYSK is one of them. Omni means ’’all’’ and omnichannel is responsible for
ensuring outstanding customer’s experience and creating loyalty by providing tailored behaviour
adjusted to customer needs and requirements. This is necessary for staying in the forefront of today’s
market composed of many companies competing for market share.
The most important factors, according to MarketLine research in home furnishings market are quality,
price and design of the product, unlike branding, which is not as important. Therefore the aim, in
order to maximize customer’s satisfaction, will be held on linking these three factors into the future
cross channel supply chain strategy.
PURPOSE
The purpose of the project is to design the future cross channel supply chain for JYSK in Denmark.
PROBLEM FORMULATION
How can JYSK form their future cross channel supply chain strategy to comply with the growing
online market in Denmark in 2021?
18 December 2020 3
RESEARCH QUESTIONS
1. How is the current supply chain for JYSK?
2. What is the existing cross channel market strategy, and what are the expectations for the
future in terms of shift from shops to online?
3. How does JYSK logistics develop from 2019 Q1-Q3 to 2020 Q1-Q3 on online sale
4. What is the development and distribution of orders in regions by postcodes from 2019 to
2020.
DELIMITATIONS AND LIMITATIONS

In the project description the limitations and delimitations will not be the consequences of
research and analyses until there will be completed data collection and analyses. Instead there will be
denoted what are findings through exploratory research and analyses prior to commencing the actual
project work.
First delimitation, when making research and data analysis for JYSC`s case, is that the focus
will be on the local market, market in Denmark, and not globally. That doesn't mean that the global
market is not interesting or important, that is because it is another wide area of analysis.
Second, the limitations that should be considered when working on the project, is the fact that
the dataset contains information based only on on-line orders and logistics. There will be made a
limitation on the analysis area from the very beginning in comparison to much larger areas of cross
channel supply analyses. Also the focus will be more on logistics when going deeper into details.
Third, when looking through the JYSK Dataset, it can be easily pointed out that disponible
information that can be analyzed is for quarters 1, 2, and 3 for years 2019 and 2020. It is difficult to
analyze when there is no picture for the entire year. Q4 has an impact on demand due to Christmas
holidays, that can change dramatically the conclusion. That limitation will cause a delimitation in the
dataset. The data delimitation will be only data for quarters 1, 2, and 3 for years 2019 and 2020.
Fourth, limitation is linked also to information from the dataset. When analyzing DC Uldum
delivery to B2B and B2C customers, it is important to delimitate which product goes where. For B2B
will be products delivered as “Normal erhvervspakke” and “Pakkeshop med Drop Points”, and for
B2C will be products delivered as “Home Delivery”, “Normal privatpakke”, “Stykgods”, and
“MyPack”.
18 December 2020 4
METHODOLOGY
Objective/Aim Question Model Method Source
To create a suitable How is the Mapping Presentation

strategy for the future it’s current supply process Research in the from JYSK.
required to analyse the chain for at DC book Introduction
Book-
current supply chain of JYSK? Uldum to Operations and
Introduction to
JYSK, which is conducted Supply Chain
Operations and
at internal and external Management,
Supply Chain
analysis, which helps to Mapping internet (official
Management
choose strengths and Supply sources),
relevant methods to Chain newspapers, Cecil
design a new cross library,notes, C.Bozarth,
channel supply chain presentation. Rober
strategy B.Handfield,
2019
18 December 2020 5
The description of the What is the Blue - Scientific

range of activities helps to existing cross ocean Research in the articles
identify the objectives and channel strategy books, scientific
Configuring
to assess the opportunities market articles,
Retail
that can increase the strategy, and (official sources),
Fulfillment
chances of success in the what are the newspapers,
Processes for
digital environment. expectations databases of
Omni-Channel
for the future library, notes,
The blue ocean strategy is Customer
in terms of presentations.
concerned with competing Steering by
shift from
on market free from Johannes
shops to
competitors - caused by Wollenburg,
online?
creating new one. Andreas
Holzapfel
This model helps to
- Review
recognize possibilities
annual reports
which improves
2018-2019
performance in order to
- Marketing
extend customer-centric
Models, Kim
behavior.
Buch-Madsen,
2019
18 December 2020 6
Researching the logistics How does Pivot Presentation, Data set

and how it was organized JYSK table data set analysis (JYSK)
can illustrate the efficient logistics scientific articles, notes
Chart Presentation of
flow and storage of goods develop from
Jysk.
from the point of 2019 Q1-Q3 Table
manufacture to the point to 2020 Q1- Distribution of
of consumption. Due to Q3 on online Figures
JYSK stores in
analysis of the data set it is sale Denmark
possible to analyze the
online order’s dynamics,
and model how the
customers get orders and
how JYSK chooses the
delivery company which
will help efficient
managing the future
activities and create a new
strategies.
18 December 2020 7
Chart Data set analysis, Data set

Analyzing the distribution What is the Pivot newspaper, JYSK logistics
of orders in regions can development tables develop from
illustrate the customer and 2019-2020
behavior and their distribution of Table
preferences which show orders in COVID-19
Figures
the balance from store regions by statistics
market and online market. postcodes Distance
In this way, evaluating from 2019 to calculation
the influence that the 2020. from DCU to
online market has in this each receiving
pandemic period. postal code
18 December 2020 8
PROJECT SCHEDULE
WEEK DATE TASK TO DO Meeting time

Work together on the project description
* Description
* Purpose
* Delimitations
* Methodology + questions to Jesper Zoom
46 9/11 Project description (supervision) 17:00
Applying
* Agreed info and changes
* Bibliography
46 10/11 Project description * Project schedule
A5.05
13:30
Send 1 draft project description to Pia
(20:00pm) Jespers office
46 11/11 Project description Meeting with JESPER 15:00
46 12/11
46 13/11 Project description Meeting with Pia 10:40
14/11
15/11
Project description Make changed from Pia's feedback Zoom
47 16/11 Jysk data Analysing jysk data 14:00
47 17/11 Jysk Data Analysing data 9:00
47 18/11 Q1 +Research Find more data, and JYSK information 9:00
47 19/11 Q1 +Research Find more data, and JYSK information 9:00
47 20/11 Q1 FINISH Evaluate answers 9:00
21/11
22/11
48 23/11 Q2 Find and read articles for Question 2 9:00
48 24/11 Q2 Read the articles and write answer 9:00
48 25/11 Q2 Finish Question 2 9:00
Prepare dataset for JYSK analysis 9:00

48 26/11 Q3
Final opportunity to get Project 9:00
description approval
48 27/11 Project description with Pia
18 December 2020 9
9:00
28/11
9:00
29/11
Make analysis, make tables, graphs, 9:00
49 30/11 Q3 figures
49 1/12 Q4 Prepare dataset for JYSK analysis 9:00
Make analysis, make tables, graphs, 9:00
49 4/12 Q4 figures
5/12 9:00
6/12 9:00
50 7/12 SPV Changes in text 9:00
50 9/12 SPV 1 Group ZOOM session with supervisor 10.00-10.30
st

12/12
13/12
51 14/12 SPV Changes in text 09:00-16:30
51 15/12 SPV Changes in text 09:00-16:30
51 16/12 SPV 2nd Group ZOOM session with supervisor 10.00-10.30
Finishing + Bibliograpgy, table of content, table of
51 17/12 APPENDIX figures, table of tables. 09:00-16:30
Finishing +
APPENDIX Reading throug the report, and corret
51 18/12 HAND IN langangue, design, grammatics 09:00-16:30
51 18/12 SPV 3rd Group ZOOM session with supervisor 10.00-10.30

19/12
20/12
Finishing design and correction according
to "Guidelines for Preparing Project
52 21/12 Finishing Reports VCM 2013.pdf" 09:00-16:30
Downloading to PDF, AND FINAL
52 22/12 HAND IND CHECK 09:00-end
BIBLIOGRAPHY
https://www.dematic.com/en-au/downloads-and-resources/case-studies/featured-case-studies/jysk/
https://gojysk.com/en/news/jysk-presents-record-turnover-despite-coronavirus
https://www.jysk.com/history-jysk-group
https://www.jysk.com/founder).
https://advantage-marketline-com.ez-aaa.statsbiblioteket.dk:12048/Analysis/ViewasPDF/global-
furniture-floor-coverings-70273
18 December 2020
10
18 December 2020
11
Appendix 2: Group contract
GROUP CONTRACT
MISION
1
VISION
1
GOAL 1
GROUP-RULES
1
§1. General 1
§2. Meetings 2
§3. Project work 2
§4. Breach of contract 3
AGREEMENT 3
As a member of the group I agree to meet the following points and will adhere to them until the group
task has been completed and/or goal has been reached. Furthermore I agree upon grounded clauses in
case of breach acc. to the contract. I will at all time work in the spirit of vision and mission, stated by
the group!
MISION
The mission of the group in regards to the SPV1 project is to provide excellent results in research
field with data, which are provided, and acknowledge which we acquired from September to
November, to use all the available knowledge which can impact our output in order to make our
Semester project profitable for the company and interesting for the teachers, making use of our best
competencies (Competencies matrix, Appendix 3).
VISION
Our vision is to strength our abilities to perform in a corporate environment, to gain skills necessary to
successful performance in our future, to grow up not only as a student but also as a worker in the
business field and make lifelong friendships with the members in correspondence with our group
Value Tree (Appendix 4).
GOAL
Our goal with regard to the SPV1 project is to reach a high degree in learning and to apply in practice
the elements studied in Value Chain Management, Marketing Management, and Tools for
Quantitative Analysis, when making JYSK analysis and to provide the found problems with solutions.
GROUP-RULES
§1. General
Our group is number 4 and has 3 members:
Violeta Pirtac, Republic of Moldova
Cristina Frunze, Republic of Moldova
1
Kamil Klimek, Slovakia
1.2 Group members do not have to be friends, but have to treat each other with respect.
1.3 Our group is to work as a team on SPV1 during November 2020, as well as to present the Project
for Exam in January 2021. The contract will be considered as being completed when the SPV Exam is
passed.
1.4 The contract enters into force from the date of signature.
1.5 Appendices are part of this contract.
1.6 Every person in the group will contribute with equal piece of the work.
1.7 Everyone signed down is mandatory to help each member of the group, if he or she has the
knowledge for which the person is in need.
1.8 It is obligatory to take part in online/physical meetings related to semester projects unless you are
seriously unavailable to participate.
1.9 It is obligatory to exert the effort needed to successfully terminate the semester project.
§2. Meetings
2.1 Meetings should be held according to a pre-approved schedule, including breaks of 10 minutes, at
every 45 minutes. In order to be productive, group meetings will last no longer than 2 hours and a
half.
2.2 The scheduled group meeting will be considered as being completed if at least two members of
the group will be present at the meeting. Working materials will be provided for members that were
absent, and they will be supposed to complete tasks by themselves.
2.3 It is obligatory to be an active part of the group so you can make the problem solving activity
faster to each other.
§3. Project work

3.1 No sharing of information or working materials with people outside of our group, as well as using
for group project work information or working materials from other groups.
3.2 Team tasks, as well as individual, should be performed according to an established
schedule.The project report will be performed in strong correspondence to Guidelines for Preparing
Project Reports VCM 2013.
3.3 It is mandatory to have a results of the effort regardless if they will be insufficient.
3.4 It is mandatory to inform the group about the progress at least one time per 24 hours.
3.5 It is mandatory to help each other group member in case he or she cannot contribute in work
which is needed to continue according to other people missing data.
3.6 It is mandatory to consider and pay attention to other’s thoughts and opinions.
3.7. You are obligatory to express your opinion in assertive way and thus contribute to good working
environment
§4. Breach of contract

4.1 The contract will be considered breached if someone of the members will not respect the contract
clauses.
4.2 Each time, if the member of the group will not be accountable for §2 of this contract, he or she
will serve each group member with an apple.
4.3 If the member of the group will not be accountable for §3 of this contract, other members can
vote for his exclusion.
2
4.4 If the member doesn’t respect the rules of group work, he or she will be noticed about the situation
and if rectify will not be applied, the vote about discarding the member from the work group will be
applied.
4.5 Rule 4.1 cannot be applied if the person has serious reasons to interrupt the work, unless he or she
will terminate the study because of the reason(s).
AGREEMENT
I hereby confirm my acceptance and enforcement of the above stated! 04.11.2020
_______________________ _______________________
Violeta, student number Cristina Frunze, student number
303053 294605
Student 1st semester, Student 1st semester,
Value Chain Management Value Chain Management
VIA University College Aarhus VIA University College Aarhus
_______________________
Kamil Klimek, student number
303173
Student 1st semester,
Value Chain Management
VIA University College Aarhus
3
Appendix 3: Competences matrix
Table 1. Table of Competences matrix

Personal and Professional Competencies Violeta Pirtac Cristina Frunze Kamil Klimek
Personal Competencies, according to the Dominance 32% Compliance 32% Dominance 32%
results of the DISC Personality test Compliance 30% Dominance 30% Compliance 28%
Steadness 27% Steadness 27% Steadiness 23%
Influence 9% Influence 9% Influence 18%
Personal Competencies according I am responsible and I am good in structuring Information Always has and expresses his own opinion,
to our own point of view hard working and I can focus on the most valuable careful. I can do almost every task with little
and important things help and algebra is not my strong side but
I will be helping as much as I will be able and more
Marketing Management
- Market analysis
- Planning and strategy
Supply Chain Management
- Production Processes
-Supply map analysis
Business Economics
TQA
Agenda good
intermediate
poor

Appendix 4: Value tree
Figure 1. Value Tree

Appendix 5: Excel dataset
Original data:
File name: Forsendelsesrapport 2019 JYSK.xlsx
File name: Forsendelsesrapport 2020 JYSK.xlsx
Prepared data:
File name: Result_JYSK_minusQ4.xlsx
File name: covid19Denmark.xlsx
File name: distance-calculator-up.xlsx
File name: JYSK_stores_DK.xlsx

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Semester Project (SPV1)

By: Violeta Pirtac, Cristina Frunze, Kamil Klimek

VIA University College

The bachelor Degree in

Author/s: Violeta Pirtac, Cristina Frunze, Kamil Klimek

Appendix 1: Project description

1.1. Problem formulation

1.2. Clarification of concepts – Data handling

Figure 1: Stages in the data preparation process

Source: Own production

1.3. Report structure

Figure 2: Report structure

2. Analysis and findings

2.1. The current supply chain for JYSK in Denmark

2.1.1. The concept of supply chain

2.1.2. A simplified View of JYSK’s Supply Chain

Figure 3: A simplified View of JYSK’s Supply Chain

Sources: Own production

Figure 4: Labels of OEKO-TEX

Sources: (STANDARD 100 by OEKO-TEX®, n.d.)

Distribution Center ULDUM

Figure 5: Distribution Center ULDUM

Sources:(Distribution Center Denmark, n.d.)

Below in figure 7 is a representation of the order-filling process for in stock-items is depicted to

Figure 6: Legend for the shapes:

Sources: Own production

Figure 7: Process mapping at the Distribution center Uldum

Sources: Own Production

2.2.1. Significance of cross-channel marketing

Figure 8: Importance of switching to multi-channel marketing

Source: Hill, 2020

’In today's customer-centric environment, a marketer's ability to master cross-channel marketing is

2.2.2. Changes in future of retailing

2.2.3. Current cross-channel strategy of JYSK

2.2.4. Blue ocean strategy for JYSK

Figure 9: Blue ocean strategy in points

Source: (Gary Fox, 2020)

Source: Own production

Source: Own production

Yea r-Qua rter 2 0 1 9 - Q1 2 0 19 - Q2 2 0 1 9 - Q3 2 0 2 0 - Q1 2 0 2 0 - Q2 2 0 2 0 - Q3

Source: Own production

Source: Own production

Source: Own production

Source: Own production

Figure 17: List of Holidays in Denmark in 2020

Graph 18: Nr. of infected covid-19 in Denmark year 2020

Source: Own production

Source: Own production

Source: Own production

Source: Own production

Source: Own production

Source: Own production

Source: Own production

COVID-19 has an impact on B2B.

Source: Own production

Table 28: Online orders for B2B by delivery company

Service offered by the Average of Average of Average

Source: Adapted from Wikipedia (Wikipedia, 2020)

Source: Own production

Source: Own production

Source: Own production

Source: Own production

2.4. What is the development and distribution of orders in regions by postcodes