Procurement and Supply Chain Analysis for IKEA

Running head: SUPPLY CHAIN FOR IKEA
Mapping and Analysing
Procurement and Supply chain for IKEA
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SUPPLY CHAIN FOR IKEA
Executive summary
This report will be dealing with the procurement and supply chain for IKEA whose
tremendous efforts and qualified services at low cost made it one of the leading companies in
furniture around the world. IKEA is a top-rated business organization, which deals with home
furnishing products. The approach will be to analyze the Supply Chain strategies adopted by the
company and identify the best strategies that are necessary for the business operations of IKEA.
Different models and theories will be used for analyzing the supply chain strategies, and the
suitable options will be introduced for the company. Dynamic alignment model will be used for
the successful identification of the best strategy best-suiting the business operation of the
company.
Vision, mission and strategic goals of the company
The IKEA retailing was started with the concept of the woods of Southern Sweden, and
the company is operating from the last 70 years. The company claims the company has grown
due to the contribution and the experience gained in these years and still improving. The
company has adopted a vision of creating a better everyday life for the different individuals and
the customers who are connected with the company (IKEA 2019). This vision is shared among
all the stakeholders, and the contribution is made by each of the IKEA co-worker, trademarks,
and the retailers.
Findings of supply analysis
The IKEA works as a group for managing the IKEA concept around the world and has
the franchise in around the world. The company deals with the selling and designing of the
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SUPPLY CHAIN FOR IKEA
"ready to assemble furniture" and has been operating a very long supply chain across the globe.
The operations of the supply chain include the following products:
 Bookcase ranges
 Furniture appliance
 Curtain accessories
 Bathrooms articles
 Children items
 Home accessories
 Upholstered furniture
 Kitchen articles
It has been identified that the traditional approach adopted by the company must
coordinate between inside and outside the company for the development of the chain within all
functions of the supply. There has been the consideration of the non-core competency functions
while collaborating with the partners. The company has adopted the boost best strategy for
maintaining the relationship between the customers and effective collaboration with the partners,
including the members of the IKEA company (Laurin and Fantazy 2017). The suggestion can be
made to adopt supply chain management, considering the demands realized from the side of the
customers.
The supply chain process of IKEA is established based on two ideas, which are as:
Firstly, the company operates into different approaches for meeting the supply and managing the
supply chain firstly, the product introduced to the market is based on the demand of the market
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SUPPLY CHAIN FOR IKEA
(Yu et al. 2016). Secondly, the linkage between the products has been established considering
the long-term process that is being maintained within the company.
Findings of operations analysis
Operation management system approaches have been applied health integral part of the
system of IKEA company. The different methods being introduced in the existing system of the
company include corresponding flow waste elimination and full philosophy that focuses on
delivering the daily operations of the company as it is being planned. IKEA also consists of a
portable motion (Stadtler 2015). Define string and operating of Idea company can be described
using the following model:
Figure 1: Process Map of IKEA
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