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“To create a better everyday life for the many people”
Supply Chain Success
3 A strategies to win
Only Supply chains that are agile, adaptable and aligned provide the companies with sustainable competitive advantage.
Agility
- IKEA outsources from 1300 suppliers from 50 different countires
- 31 trading centres across 26 countries maintain close relationship with suppliers
- Allows effective local empowerment - Decentralized Control
- Production capacity can be altered very quickly and efficiently
Adaptability
- Trading centres allow new ideas & technologies to be tested according to external changes
- The trading centres keep seeking and building relationship with potential suppliers
- Suppliers also keep adapting to the changes
- Allows IKEA to have an adaptive supply chain
Alignment
- Buying in large volume means higher revenue to suppliers and lower average cost to IKEA
- 'IWAY' supplier code of conduct improves competitor competitveness and ensure that high quality products are delivered
- A win-win situation across all players in the supply chain
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