3. IKEA
• IKEA was founded in 1943, in Sweden, by a man named Ingvar
Kamprad.
• Initially it offered items such as pens, wallets, picture frames,
jewelry, etc.
• In 1947, furniture was added to their product selection, followed
by personally designed pieces in 1955.
• It is known for selling disassembled furniture.
4. Supply Chain at IKEA involves a flow of production and
processes through each of the three industrial sectors:
Raw Material Manufacturing Distribution Retailer Consumer
Primary
Sector
Secondary
Sector Tertiary
Sector
5. Primary Sector
IKEA designs its own products in Sweden, considering low price
for producing home furnishings.
At the design stage, IKEA checks that products meet strict
requirements for function, efficient distribution, quality and impact on
the environment.
Sources raw materials from over 1300 suppliers in 50 countries
and uses a number of trading services across the world.
6. The team of IKEA negotiate prices with suppliers,
Check the quality of materials,
Analyze the environmental impacts that occur and ,
Also keep an eye on the social and working conditions of
suppliers.
7. Secondary Sector
Manufacturers within the secondary sector creates IKEA products
from raw materials. As the products move through the supply chain,
the process of value- added takes place.
IKEA designs many of its products so that the smallest amount
of resources can make the best products.
For e.g.: IKEA saves on resources by using hollow legs in
furniture.
8. Tertiary Sector
In the tertiary sector, IKEA’s retail stores
add value to manufactured goods by
providing a form of shopping different to
the usual high- street experience.
9. These meet the needs of the customers in a number of different ways :
Each IKEA store is large and holds more than 9,500 products giving
lots of choice.
Within each store, there are a number of realistic room settings that
enable customers to see what the products would look like in their
homes.
The IKEA store is built on the concept of “ you do half, we do
half…together we save money “.
Customers handpick product products using trolleys.
IKEA provides catalogues and home delivery to save customer’s
time.
IKEA stores have restaurants that provide Swedish dishes alongside
local food choices.
10. Some Suppliers Of IKEA
Baosteel :- supply stainless steel for export only for IKEA
Swedwood :- handles production of all wood-based furniture
DyeCoo
Royal Leather Industries Ltd.
Kova Foam
