Ikea supply chain introduction
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- 2. IKEA’s SUPPLY CHAIN NOV – 2015 2 Ali Arjmand University of Tabriz
- 3. 3 Table Of Contents - About IKEA - IKEA’s Supply Chain Framework - Global Supply Chain Planning - Concluding
- 4. 4About IKEA - Founded in 1943 in Sweden by Ingvar Kamprad - Vision : Create a better everyday life for the many people - Business idea : To offer a wide range of well designed, functional home furnishing products at price so low that as many people as possible will be able to afford them
- 5. 5About IKEA IKEA Group at a glance 2014 Total sales EUR 28.7 billion Stores 315 in 27 countries Products About 9,500 in the range Co-workers 147,000 Suppliers 1,002 home furnishing suppliers in 51 countries Store visits 716 million Web visits more than 1.5 billion Catalogues 217 million printed in 30 languages Production 59% of our production is in Europe
- 6. 6 Shorten the distance between need of customers and suppliers Low cost Low prices High volumes About IKEA
- 8. 8 147000 co-workers 1350 suppliers 31 trading service offices in 26 countries 315 stores 31 distribution center in 16 countries Framework
- 9. 9Framework - Products are manufactured all over the world - Local officers near to the suppliers - Long-term agreements give low prices Top purchase countries China 18 % Poland 12 % Sweden 9 % Italy 7 %
- 11. 11Framework - Large volumes + flat packs = low costs - The hallmarks of IKEA distribution From supplier to store : - More deliveries by rail in future - Global network - Flat packs - Large volumes - Low costs
- 12. 12Framework Producing for IKEA includes following requirements - Legal requirements - Social & working conditions - Environment and Forestry
- 13. Supply Chain Planning Process 13
- 14. 14Planning Process FRAME OF REFERENCES - Supply Chain Planning Process - Centralizing planning functions - Software support (ASP)
- 15. 15 Overview of the planning concept Planning Process
- 16. 16 - Overall sales forecast made by corporate management - Aggregate level in terms of total sales volumes in monetary units Sales planning - Forecast include remaining fiscal year plus 5 years into the future - Updated 3 times per year
- 17. 17 Demand planning - Adapting information and forecasting a certain part of assortment
- 18. 18Planning Process - Operational forecast is a manual forecast registered by respective units for the 3 weeks ( replenishment needs in the store) - Tactical forecast is done on a rolling 84 weeks horizon on store level Retail forecast group ? Region ? - DP should check the plan every week
- 19. 19Planning Process Need Planning - The forecasts are netted against current stock level, ss and also against goods in transient.- Need planner is the person that is responsible for need calculation - So, volumes are divided between suppliers
- 20. 20Planning Process Supplier Capacity Planning
- 21. 21Planning Process IKEA’s Planning Process Enablers - Planning Organization - Data Quality - Software Support
- 22. 22 One integrated planning process working-together environment detect and deal with problems Balanced SC
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