Explain How Each Sector of Industry Is Linked Together Within a Supply Chain?

835 WordsDec 10, 20114 Pages
Explain how each sector of industry is linked together within a supply chain? In today's world, supply chain management (SCM) is a key strategic factor for increasing organizational effectiveness and for better realization of organizational goals such as enhanced competitiveness, better customer care and increased profitability. Today, most of the enterprises of a supply chain operate independently. For example, marketing, distribution, production planning, manufacturing, and the purchasing organizations have their own objectives and these objectives are often conflicting. This way of functioning prevents the enterprises from providing the right products to the right customers at the right time. All these organizations are individually…show more content…
IKEA has more than 260 shops in 36 countries set up to provide a retail experience that meets consumer needs. Stores are large and customers can pick their own purchases. Further services are provided through the IKEA catalogue and home delivery. IKEA also has set up initiatives to support sustainability within the company by aiming to recycle up to 90% of its waste, removing carrier bags from its stores, subsidising public transport and encouraging cycling (with a new bike given to each employee), giving low-energy light bulbs for employees, using only hybrid vehicles as company cars. Within a supply chain, every sector must be well connected. It means that the upstream and the downstream can not be separated in order to meet the market demand in any situation. The three sectors mentioned earlier within IKEA supply chain are well connected. IKEA uses excellent supply chain concepts, reducing and eliminating wastes at every stage and hence can offer good value to customers. The IKEA’s supply chain is a complete process that can match together the suppliers, the manufacturer and the customers. With the support of the primary sector, IKEA can sustainably produce high quality products and sufficient quantities to meet the market demand at the lowest cost. The tertiary sector helps IKEA go further to create added value for customers, bringing about a close and sustainable relationship with the customers. IKEA’s supply chain strategy to
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