Strategic Supply Chain Management - IKEA
Added on 2020-06-03
14 Pages3796 Words131 Views
Strategic Supply Chain Management
Executive Summary Supply chain management is a process in which companies purchase raw material, transform it into usable goods and then they deliver the products to end users. IKEA is multinational manufacturing firm that provides furniture, kitchen appliances to customersas per their requirements. Report is discussing about supply chain competitive strategy of cited firm. It is making such strategies through which company can reduce its utility cost and can enhance its profitability. Supply chain management of the organization is being analysed in this assignment. It is described that IWAY code of conduct is supporting IKEA and checkers ensure that suppliers meet request of end users. Competitors are creating pressure of the corporation but it is trying to maintain balance between quality and price. IKEA has strong relationship with the suppliers that support the cited firm in getting quality raw material and offering quality products to customers. Report is also discussing about issues that are faced by IKEA such as inventory management, communication.
Table of ContentsINTRODUCTION...............................................................................................................1MAIN BODY.......................................................................................................................1Description of organization and its supply chain system..............................................1Supply chain competitive strategy.................................................................................3Supply chain risk management.....................................................................................4Global supply chain management.................................................................................6Analysis of supply chain of IKEA...................................................................................7Issues in the supply chain and recommendations........................................................8CONCLUSION ..................................................................................................................8REFERENCES................................................................................................................10
INTRODUCTIONSupply chain management is an effective tool that control and manage supplychain activities of organization in order to maximize customer value and gaincompetitive advantage. Present report is based on IKEA which is a multinationalmanufacturing firm that produces furniture for making home a better place (Gosling andet.al, 2016). Current assignment will investigate supply chain system of IKEA. Supplychain competitive strategies, risk management and global supply chain management ofthe entity will be described in this study. Furthermore, report will identify critical issuesfaced by the cited firm and solutions for improving supply chain of the organization willbe discussed in this assignment (How IKEA makes its supply chain sustainable?, 2014).MAIN BODYDescription of organization and its supply chain systemIKEA is multinational manufacturing firm that designs and sell its furniture, homeaccessories, and kitchen appliances products to customers. It has more than 340 storesin 28 countries and all its physical outlets are generating profit (Nilsson and Svensson,2016). Its main objective is to create better life for the population and offer themsatisfactory products and services. Cited firm identify needs of consumers and providethem services accordingly. IKEA main principle is to grow well by utilizing ownresources effectively. Whenever customer go to any store then they look upon therange of products and services that offer by the entity (How IKEA makes its supplychain sustainable?, 2014). That need of people fulfil by the cited firm significantly that iswhy consumers of the corporation are very satisfied. It is fact that 70% of annualmarketing budget of IKEA is consumed by its catalogue (Fuchs and Otto, 2015). That iswhy it has become the world's largest home furnishing retailer. It has not only impressedits consumers by providing affordable quality furniture products but also it is admired byits competitors as well for its unique supply chain and inventory managementtechniques (Errasti, Rudberg and Corti, 2015). Supply chain system of IKEA consists of several components:1
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