The Management Of Ikea 's Suppliers, Inventory And Quality

3508 Words15 Pages
1 INTRODUCTION
IKEA was founded by Ingvar Kamprad in Sweden in 1943. As a global furniture retailer, it operates in 47 countries of Europe, Asia, North America, Oceania and Africa and has 164 thousand co-workers. IKEA provides modern designed furniture with affordable prices, which brought 30.1 billion Euro profit to IKEA as of August 2014 (IKEA, website). This study aims to analyse the management of IKEA’s suppliers, inventory and quality and understand how these three elements contribute to the achievement of IKEA’s objective. First of all, the bargaining power of supplier and substitutes will be discussed. This study will also explain the approach used by IKEA to manage inventory and quality and examine their effectiveness. Lastly, the relevance of the information utilised for the research to theoretical knowledge of suppliers, inventory and quality will be analysed.

2. SUPPLIERS MANAGEMENT
2.1 Identification and description of IKEA suppliers
IKEA is one of the largest furniture retails has domestic suppliers and international suppliers with four types (IKEA 2009). Firstly, it has 1220 home furnishing suppliers, which occupied the majority of suppliers. According to Swedwood website, IKEA has two fully integrated international group of Swedwood and Swedspan, which are responsibly for producing, distributing and managing wood based furniture. Secondly, it has 97 food suppliers. Suppliers supply fresh and packaged food to IKEA. Thirdly, IKEA has catalogue paper

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