Ikea 's Supply Chain Management

Westminster Company is a giant Global manufacturer of health products whose brand has been recognized by the world. As the company they have three different operations which produce and distribute different product lines. Their main strategy on which they are working and which is a major success for them is decentralized management. Now they are re-evaluating their traditional supply chain strategy because the company is getting too much pressure from their large domestic’s customers and global customers. Now the company has to study on

The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.

IKEA is an abbreviation of Ingvar Kamprad Elmtaryd Agunnaryd. The initials come from the name of the founder, the farm where he grew up and his home parish. The firm has grown rapidly since it was founded in 1948. From a very young age, Kamprad started selling furniture and he always kept his low costs - so low that other furniture stores pressured the National Association of Furniture Dealers in Sweden to stop providing Kamprad with products. The first store of IKEA was opened in Almhult, Sweden. The next stores are in

The main purpose of this paper is to show my knowledge of the supply chain and relate it to Targets supply chain reviewing if target has an efficient supply chain set up. The head corporate office is in Minniapolis but target has many stores throughout the world. Their main strength is their customer service which keeps the customers remaining faithful not only to the store but to targhets personal brand as well. If you want to know the effectiveness of targets supply chain then continue to read and relate what I am saying to your pwn personal shopping experience. By the

IKEA is a global furniture retailer, which is established on the concept of contributing wide range of well designed, functional, and low cost home furnishing products in 40 countries, with 330 stores and 154,000 workers (The IKEA concept, 2012). IKEA was founded in 1943 by Ingvar Kampar and has turned in an international furniture retailer that specialized in stylish but inexpensive furniture designs.

Global sourcing is an important sourcing strategy for IKEA Company. According to Hultman, Hertz and Johnsen (2012), in 2008, IKEA has 54 different sourcing countries and 30 purchasing departments which were located all over the world. With the expansion of its market, IKEA was not satisfied with selling its product only in domestic and Nordic market instead it put its higher goal in global market. Therefore the sourcing market also expanded with the growing market. There were 64% of its products were sourced from European countries which were mainly in eastern part like Czechoslovakia, Rumania and Hungary; China with a 22% share of the supply was the largest single supply market, and Poland with a 16% share (IKEA 2007). However, IKEA also trades off the cost of raw materials and cost of transportation, hence IKEA combined the Global sourcing with local sourcing strategy to lower the total cost.

Strategic alliances could reduce the complexity of logistics if IKEA is able to find a reliable partner in this field.

Due to the size and scale of IKEA’s global business, this could lead that its hard to control the standards and maintain good qualities. This could represent the weaknesses in IKEA’s supply chain and affect consumer views. Training and inspectors visiting factories to make sure that suppliers meet its requirements is backed up by IWAY code (Business Case Study 2016).

IKEA began as a small company in Sweden selling small household items but in 1945 began selling furniture. IKEA has expanded to other European countries, Canada and Australia. Currently, IKEA is the market leader in the distribution of furniture and home decorative items. IKEA entered the Russian market in 1991 but did not open its first store until 2000 in Moscow.

The history of the company is very colorful and interesting. IKEA was founded in 1943 in the south of Sweden in Smaland. Its founder was seventeen - Ingvar Kamprad. The boy had a great deal of business, and IKEA was not his first venture. Previously, he was selling matches in his hometown. His capital for the establishment of IKEA comes from his father, who rewarded him for good academic performance. He called his company IKEA from the first letters of his name, and the names of the family farm and the village Agunnaryd Elmtaryd. The company initially dealt with the sale of feathers, frames, wallets, tablecloths, watches, jewelry, stockings and fine furniture. Kamprad to transport their goods, borrowed a truck from the local milkman.

Ikea, the Swedish furniture giant was founded in 1943. It is the world's largest furniture retailer that sells stylish but inexpensive Scandinavian designed furniture. It has outlets in 35 countries, including Singapore. The company is, perhaps, one of the World's most successful multinational retailing firms operating as a global organization based on its unique concept that the furniture is sold in knock down form that are to be assembled by the customer at home.

In 1963, IKEA opened a store in Oslo, Norway, its first store outside Sweden. In 1965, it opened a store in Stockholm, Sweden.

4. What is IKEA’s strategy toward suppliers? How important is this strategy to IKEA’s success?

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.

2. The reason of why distribution is such a key element of IKEA’s value chain.. 2