Ikea supply chain analysis
introduction
Company Background
Swedish company World's largest furniture retailer
Ready-to-assemble furniture
Purchasing approaches: 1.Online ordering 2.in store Shopping
Known for attention to cost control, operational details and continuous product developent
Overview of supply chain
3 Geographic areas
Supplied through 31 distributions Centres
Supplied 1350 suppliers in more than 50 countries
Characteristics
- Centralised Supply Chain Planning
- Global Sourcing
- inventory Management & Coordination
- Complex transportation System
- In store Shopping @ Online Ordering
Centralised Supply Chain planning
Ikea of Sweden- global cenrealised system
-A new centralised planning system
- a global planning process
-Focus on demand planning improving materials planning with new Software system (e.g. Advanced Planning and Scheduling ) A central planning engine
หน้า3
Centralised Supply Chain Planning
Ikea Of sweden Global Centralised System
-A new centralised Planning System
-A global planning process
-Focus on demand planning improving materials planning with new Software system (e.g. Advanced Planning and Scheduling ) A central planning engine
Functions.
Standardise the planning process
Establish vertical integral integration & hierarchical integration of supply chain (E.g. Suppliers owned in part or in full by Ikea )
Effects
Standardisation Large scale automation & specialisation improve operational performance