Assignment on Supply Chain Sustainability

Running head: SUPPLY CHAIN SUSTAINABILITY
3a. Written Report
[Supply Chain Sustainability, IKEA Australia]
Name of the student:
Name of the university:
Author note:

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SUPPLY CHAIN SUSTAINABILITY
Executive summary
The report aims to discuss the supply chain of IKEA particularly in the context of its distribution
structure. It was being found that IKEA’s supply chain faces many unresolved complexities such
as strategical mapping of its distribution facility. It has one big distribution facility located at
Marsden Park, Australia. However, it needs more such facilities in areas close to populous
marketplaces comprising of high numbers for wealthy people. The supply chain faces many risks
such as ineffective relationship management with the suppliers. As found in the study, IKEA is
doing many things such as zero waste policy in regards to its sustainability notion. Prevention
was recommended as the key to facilitating its zero-waste at large scale. IKEA needs to source
sustainable materials from suppliers. Also, customers can contribute by taking some preventative
measures to waste such as effective disposing of unused items.

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SUPPLY CHAIN SUSTAINABILITY
Contents
A brief overview of the organization and its supply chain within the selected context
(Distribution Structure)....................................................................................................................3
A high-level map of the supply chain in the chosen context (Distribution Structure)....................3
Critical analysis and evaluation of the following three areas within the supply chain of the
organization (Distribution Structure):..............................................................................................5
1. Supply Chain Complexity........................................................................................................5
2. Supply Chain Risk Management.............................................................................................8
3. Supply Chain Sustainability..................................................................................................10
Three well-justified recommendations and a discussion on how each recommendation could be
Applied..........................................................................................................................................11
The future of the organization's supply chain................................................................................13
References......................................................................................................................................15

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SUPPLY CHAIN SUSTAINABILITY
A brief overview of the organization and its supply chain within the selected
context (Distribution Structure)
IKEA is a European multinational that designs as well as sell ready-to-assemble
furniture, home accessories, kitchen appliances and others. Founded in 1943 IKEA steadily and
successfully expanded to worldwide locations. Australia is one of its worldwide business
locations where IKEA enjoys a good presence. FDC has completed the first purpose-built
distribution center for IKEA at Sydney Business Park Precinct (FDC, 2020). This new
distribution facility is expected to serve IKEA’s rising business needs to respond to the mega
supply chain trends. The report is aimed to conduct a critical assessment of the supply chain of
IKEA in the context of its distribution structure.
A high-level map of the supply chain in the chosen context (Distribution
Structure)