Supply Chain management issues of IKEA: Recommendations

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Supply Chain

Contents
Supply Chain management issues of IKEA: Recommendations.............................2
Introduction........................................................................................................... 2
Supply chain management issues faced by IKEA...................................................2
Supply Chain guidelines of IKEA............................................................................4
Conclusion............................................................................................................. 5
Recommendations................................................................................................. 5
References............................................................................................................. 7

Supply Chain management issues of IKEA:
Recommendations
Introduction
In every organisation, supply chain is significant because it ensures the production of goods
as well as services. It is said to be the process through which the material move from different
people to the customer. Several activities are attached with the supply chain including
purchasing, manufacturing, transportation, customer service, supply planning, and supply
management. due to this, companies are required to use the effective practices that ensures
that product as well as services meet the commercial standard. IKEA is seen as one of the
best company that has to face several supply chain management issues in relation to its
products. In the global competitive environment, need for customer orientation and
operational efficiency has also grown (Brunninge and Fridriksson, 2017). Due to this,
retailers are also looking beyond the boundaries of the organisation for developing their
resources of the supply chain [partners for creating the competitive advantage and superior
value.
IKEA is well-known furniture producing company based in Sweden. It was founded in the
year 1943. It has gradually increased its business globally with the help of effective supply
chain strategy. IKEA has the clear vision to provide the best, well designed home furnishing
at the lower price so that each person can afford it. The key success of IKEA is also given to
its strong relationship with the manufacturer and material suppliers. IKEA also has code of
conduct names IKEA way of purchasing home furnishing products. It contains the entire
guidelines and rules that helps the manufacturers in reducing the impact of their activities on
the environment. In the recent time, it is found to be the biggest manufacturer of wood that
specialises in manufacture, design, as well as supply of the household fixed furniture. Due to
its expansion of business globally, it is also required by the company to manage the supply
chain issues (Stadtler, 2015).
Supply chain management issues faced by IKEA
 The first supply chain issue faced by IKEA is the selection of supplier. It is found that
it does not supply the goods in proper manner due to lack of coordination and collaboration.