S upply C ha in

of
IKEA
Shaheen E. Al Kadri
Aliyeva Chinara
Outline

1 2 3 4
Introduction Mission & Supply Primary
of IKEA Vision Cha in sector
mapping focus
Outline

5 6 7 8
Secondary Tertia ry Operation Conclusion
Sector focus Sector Management
focus best practices
 Introduction to
IK EA
IKEA was founded by Ingvar
Kamprad Elmtaryd Agunnaryd in
1943 Sweden. They Operate in
the retail industry.
Chain of product:
Restaurants, Manufacturing
and Housing.
Area Served:
Multinational. 458 stores
(2021).
IK EA s tores a round the
w orld:

Current market
locations Future market
locations Former
market locations
IKEA's M ission &
Vision:
Mission Statement Vision Statement

'To offer a wide range of “To create a better

well- designed, functional everyday life for the
home furnishing products at many people.”
prices so low that as many
people as possible will be
able to afford them'.
IKEA Supply Cha in
M a pping
Raw
Manufactury Distribution Retailer Consumer
Material
s

Primary Secondary Tertiary

Extracts Extracted Provides the services needed to meet the needs of
or
develops primary end- users, for example through retailing,
natural materials to distribution, insurance and customer services.
resources build,
such as manufacture
timber, or develop
agricultur e, finished
 Prim a ry Sector
IKEA
Step 1: Designers Step 2: E&D Step 3:

Designers choose their Extraction or development Designing process and

raw materials carefully of raw materials price tag already
especially for their decided in Almhult
quality and the impact to (Sweden),
the environment.
Prim a ry Sector
IKEA
Recycling
Resource Extraction
End of life

Us Manufactoring
e

Distributio
 Seconda ry Sector
IKEA
Product Manufactoring

Use as little as possible

of material for the
making of the product.
Tertia ry Sector IKEA
( La yout)
IKEA's
Show room
Opera tion Ma na gem ent
2. Lea n Opera tions
1. Minim um a nd
Ma xim um
•To determine the store-
level inventory reorder
point
•To ensure inventory is
ready to meet customers’
demands
•To lower the cost of
lost sales.
 References:
- https://www.statista.com/statistics/241825/number-of-employees-of-the-ikea-group-worldwide-by
- function/#:~:text=In%202021%2C%20the%20number%20of,staff%20members%20compared%20to
%202 013.
-