IKEA Order Processing Strategy
Preparation for Term Project
This is the information for the term project in this course. This assignment will be due at the end of Module 7.
For the final exam, you will focus on the case study: Strategic Supply Chain Management Implementation – Case Study of IKEA (document is below). Please read through the case study and then prepare a 5–8-page case study analysis. Your analysis should include the following:
Overview of the case and its purpose
- Explain the competitive strategy that IKEA has used through its supply chain.
- Explain the key points of the IKEA supply chain and all third parties, if applicable
- Discuss how value is given to the customers through the supply chain.
- Discuss the order processing strategy used by IKEA.
- Summary of the case and recommendations of improvement
- Strategic Supply Chain Management Implementation – Case Study of IKEA.pdf
Support your assignment with at least five scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.Length: 5-6 pages, not including title and reference pages.
Your assignment should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
Introduction:
This paper analyzes the case study of IKEA’s strategic supply chain management implementation. IKEA is a global furniture retailer, and its unique value proposition is low-priced furniture. The company has successfully implemented a supply chain strategy that allows it to offer affordable furniture while maintaining quality. This paper will analyze how IKEA has implemented its supply chain strategy to achieve its competitive advantage.
Overview of the case and its purpose:
IKEA is a Swedish furniture retailer that was founded in 1943 by Ingvar Kamprad. The company’s unique value proposition is low-priced furniture. The purpose of the case study is to analyze how IKEA has implemented a strategic supply chain management strategy to maintain its competitive advantage. IKEA’s supply chain management strategy involves designing furniture, sourcing raw materials, manufacturing, and distributing the products to its retail stores. The company’s supply chain strategy allows it to offer affordable furniture while maintaining quality.
Competitive strategy used by IKEA through its supply chain:
IKEA has used a cost leadership strategy as its competitive strategy through its supply chain. The company’s goal is to offer affordable furniture to its customers. IKEA has achieved this by implementing a supply chain strategy that allows it to control costs at every stage of the supply chain. The company designs its furniture to be easy to manufacture and assemble, which reduces production costs. IKEA sources its raw materials from low-cost countries and focuses on using renewable resources. The company’s manufacturing process is highly efficient, which reduces production costs. Finally, IKEA uses flat packaging to reduce transportation costs.
Key points of the IKEA supply chain and third parties:
IKEA’s supply chain strategy involves four main stages: design, sourcing, manufacturing, and distribution. The company’s design process involves designing furniture that is easy to manufacture and assemble. IKEA sources its raw materials from low-cost countries and focuses on using renewable resources. The company’s manufacturing process is highly efficient, and it uses automation to reduce production costs. Finally, IKEA uses flat packaging to reduce transportation costs.
IKEA’s supply chain involves third-party suppliers and logistics providers. The company sources its raw materials from suppliers in low-cost countries, and it works closely with these suppliers to ensure that they meet the company’s standards. IKEA also works with logistics providers to transport its products from its manufacturing facilities to its retail stores.
