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IKEA's Supply Chain Management

   

Added on  2020-03-23

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Strategic Supply Chain Management1
IKEA's Supply Chain Management_1

TABLE OF CONTENTSOVERVIEW OF THE CASE..........................................................................................................1COMPETITIVE STRATEGY OF IKEA........................................................................................1KEY POINTS OF IKEA SUPPLY CHAIN....................................................................................2HOW COMPANY DELIVERS VALUE........................................................................................3ORDER PROCESSING STRATEGY OF IKEA............................................................................4SUMMARY OF THE CASE AND RECOMMENDATION.........................................................4REFERENCES................................................................................................................................62
IKEA's Supply Chain Management_2

OVERVIEW OF THE CASE Supply chain management is regarded as the process of managing all interrelatedbusiness activities through which flow of goods and services are managed. Further, it isconsidered as the chain through which products are purchased for production purpose andultimately it reaches to the target markets who are the ultimate buyers[ CITATION Wat14 \l1033 ]. For every type of business operating in the market, it is necessary to manage its supplychain in an effective manner so that right kind of good can be offered to the customer as per theirexpectation. The present report is based on analyzing supply chain management practice of Ikeawhere the company has 27 trading offices in 23 countries, 15 customer distribution centers and33 distribution centers. The Company is headquartered in Netherlands that is indulged into the practice ofdesigning and selling ready to assemble furniture, home accessories and kitchen appliances. Theenvironment where Ikea operates is highly competitive, and its main competitors are online andretail furniture stores[ CITATION San17 \l 1033 ]. The main focus of the organization is onoffering the wide range of products that are of high quality. Considering the supply chainpractice of Ikea, it undertakes different stages and involves primary, secondary and tertiarysectors that are involved in procurement of raw material, production, distribution, retail sales,etc. COMPETITIVE STRATEGY OF IKEA Considering the supply chain practice of Ikea where operations are carried out with thehelp of three different stages that involves primary, secondary and tertiary. Through effectivemanagement of supply chain, the key goal of business is to ensure customer satisfaction andproviding them remarkable purchase experience. In the stores of Ikea different products areavailable where they can easily choose the best product that meets with their requirement. Thepackaging of the product is also done in the different manner that contains instructions and allthe necessary information regarding products. Along with this additional facilities are providedto the customers that involve children play area, food court, mini cinema, etc[ CITATIONWan02 \l 1033 ]. This strategy allows the company to influence purchase behavior of itscustomers. The key competitive strategy undertaken by Ikea is product diversification and costleadership which has been considered with the help of its supply chain practice. The company1
IKEA's Supply Chain Management_3

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