top of page

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
bottom of page