ESC Rennes school of business
Supply chain management of IKEA
Table of content
Executive summary 2 IKEA supply chain and background 2, 3 Strategy and market 4 Process structure in terms of information, inventory, transportation and location 5 Problems and weaknesses 6 How can they restructure the problem 6, 7 Recommendation 8 Conclusion 8 References 9 Executive summary
IKEA is a multinational corporation with Swedish origin. They retail furniture and some other objects for home and home decoration at a low price, so as many people as possible will be able to afford them and with high quality. The IKEA brand belongs to a foundation in the Netherlands. It is one of the furniture producers, and is considered one of the most prestigious and innovative. They have 298 stores in 37 countries, and each IKEA store holds more than 9,500 different products. IKEA commits to a catalog of products stocked for a year at a guaranteed price. As a result of the large product variation they face the risk of creating excess or obsolete inventory. IKEA has their own design center and designers, self-sufficient with wooden products. Supply chain operations, inventory management and some other of their functions work together to support its distinctive value proposition. Cost-effective management of distribution centers is their competitive advantage. IKEA design unique products with low manufacturing costs that meet some strict requirements for function, efficient distribution, quality, and impact on the environment. More than 50% of the products are made from sustainable or recycled products. Also they have a very sustainable relationship with their suppliers.
IKEA supply chain process and background
In this part of our project we will present the background of IKEA a global retailer of which specializes in stylish but inexpensive Scandinavian designed furniture and accessories founded in Sweden in 1943 by Ingvar Kamprad it operates in more than 40 different countries/territories worldwide. IKEA supply chain process starts with the design stage for these they keep low prices in mind, after that the purchasing stage IKEA got more than 1,800 suppliers in 50 countries they make long term relationships with them to ensure cheaper prices in the future, when they have the finishing product and it is ready to be transported they save...
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