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Case
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Reference no. 609-031-1
Authors:
Published by:
IBS Center for Management Research (2009)
Length:
15 pages
Data source:
Published sources
Abstract:
The case examines the supply chain management practices of IKEA, the Sweden based furniture retailer. IKEA, the world's leading retailer by sales had its presence across the globe. The company focused on providing its customers with affordable yet stylish and functional furniture. It made efforts to eliminate several activities that added to the final cost of the furniture but could be avoided. Its USP lied in its packaging. IKEA designed its products in a manner to disassemble the whole unit and transport the parts of the furniture in flat packages. That saved IKEA huge costs in transport. The case explains the evolution of IKEA's business model, expansion strategies, supply chain planning process, relationship management with its suppliers, warehouse operations and store design. It highlights the measures taken by the company to make its supply chain cost efficient. The case is designed to achieve the following teaching objectives: (1) understand IKEA's business model; (2) examine the supply chain management practices of IKEA; (3) appreciate IKEA's innovative method of designing and packaging products; (4) identify the strengths and weaknesses of IKEA's supply chain; and (5) evaluate how the efficient supply chain system helped IKEA in maintaining low prices. The case is aimed at MBA / PGDBA students and is intended to be part of the operations / supply chain management curriculum. The teaching note includes the abstract, teaching objectives and methodology, assignment questions, feedback of case discussion, and additional readings and references. The teaching note does not contain an analysis of the case.
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