Procurement and Supply Chain Management Analysis of IKEA

Running head: PROCUREMENT AND SUPPLY CHAIN MANAGEMENT
Procurement and Supply Chain Management
Name of Student
Name of University
Author Note

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PROCUREMENT AND SUPPLY CHAIN MANAGEMENT
Table of contents
Vision, mission and strategic goals of IKEA.............................................................................3
Part A: Findings of supply analysis...........................................................................................3
Part B: Findings of operations analysis......................................................................................4
Part C: Findings of information analysis...................................................................................5
Part D: Findings of integration analysis.....................................................................................6
Part E: Findings of sustainability analysis.................................................................................6
Discussion of IKEA's procurement and supply chain analysis..................................................8
Discussion of improvement programs.....................................................................................10
Improvement programs assisting IKEA to achieve its vision, mission and strategic goals.....11
Conclusion................................................................................................................................12
Reference..................................................................................................................................13

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PROCUREMENT AND SUPPLY CHAIN MANAGEMENT
Executive Summary
The report analyses the effectiveness of procurement and supply chain management in
organisations. The report focuses on IKEA and the ways by which it maintains its supply
chain. A thorough analysis is made of the supply chain strategies that are adopted by the
organisation. IKEA designs and sells ready to assemble furniture that is useful for household
and office purposes. The report analyses the effective application of the Bullwhip effects and
the Dynamic Alignment model so that an understanding of the effectiveness of the strategies
used by IKEA can be made. Recommendations are also provided that can help IKEA in
trying to restore its supply chain management within the organisation.

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PROCUREMENT AND SUPPLY CHAIN MANAGEMENT
Vision, mission and strategic goals of IKEA
The mission of IKEA is to create a better everyday life for most people. It offers a
wide range of functional home products at low prices (Ikea.com, 2018).
The vision statement of IKEA is to ensure that well-designed and functional home
furnishing products are provided to the people at a low cost. Focus is made on improving the
quality of the products along so that it matches its prices (Ikea.com, 2018).
The strategic goal of IKEA is to ensure that it provides a constant and simple quality
of products to its customers. The goal of the company is to maintain its status as the best
furniture selling company in the world (Ikea.com, 2018).
Part A: Findings of supply analysis
The goal of IKEA is to sell quality furniture to its target customers. The duty of the
procurement department is to manage the resources necessary for the classification of the
products and at the same time conduct a proper supply in the competitive business
environment. The ready to assemble furniture can be used for the decoration of houses by
maintaining eco-friendly simplicity.
The main supplier of the company is Intertek that performs its services in China and
the neighbouring Asian countries. The supplier firm helps in providing the best quality of raw
materials as well as resources to the company. According to Myerson (2015), due to the
international reputation of IKEA, the geographical dispersion of the company is spread across
various countries.
Analysis of reports has provided evidence that IKEA recently has suffered huge loss
in the market share (Ikea.com, 2018). In the current scenario, IKEA’s market has lost its grip