Ikea 's Supply Chain Strategy Essay

991 Words Nov 25th, 2016 4 Pages
Ikea’s Supply Chain Strategy
Ikea is a pioneer in the field of furniture manufacturers, what sets it’s apart from its competition is essentially the experience the customer has when buying an Ikea product along with the obvious factors like well-designed and appropriately-priced.
What enables Ikea to maintain this high level of customer satisfaction is their brilliant supply chain, which can be broken up into three sectors of the industry to have a better understanding
1. Primary Sector -
Here primary sector refers to the raw materials like timber and minerals. Ikea as we know is not a company that is involved in the development of raw materials, the company designs its products, price being a primary consideration while doing so to keep the firm competitive.
Ikea sources its products from more than 1,300 suppliers spread across 50 countries, which they manage through their trading offices at these locations. Some of the functions of these offices are negotiating prices with suppliers, keeping a check on the quality and asses the environmental impact of the process. The company is heavily focused on design solutions which minimize waste and the use of raw materials.
2. Secondary Sector -
This sector can be understood as the section where the manufacturers create products from raw materials. Communication with its manufacturers plays a key role in the success of the company.
Ikea has come up with a code of conduct called the IKEA Way of Purchasing Home Furnishing Products…

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