The Drivers and Barriers To Sustainable Procurement of IKEA
The Drivers and Barriers To Sustainable Procurement of IKEA
The Drivers and Barriers To Sustainable Procurement of IKEA
procurement of IKEA
(Transcript)
Introduction:
The industry:
IKEA is one of the largest furniture retailers in the world, with 422 stores and an almost
9,500-item product catalogue. IKEA specialises in low-priced items that are recycle,
whenever possible, are sold in a 'flat pack' form for the customer to assemble in the
convenience of their own homes.
The company's strategy is to create a higher standard of living for many people. Constant
efforts are made to improve IKEA's value chain, which will ultimately result in the sale of
higher-quality and sustainable products at lower prices.
Drives to Sustainable Procurement
External drives:
Internal drives
Therefore, IKEA instituted strict Supplier Behavior Rules, also known as IWAY,
which are the preferred procedures for procuring products and services from
third-party vendors. Establishes social, environmental, and labor standards that
are acceptable for product procurement.
2- Suppliers’ limitation:
Sometimes, strict supplier monitoring, and enforcement of sustainability
standards result in supplier resistance, which leads to further supplier resistance
and a refusal to supply those companies.
Strategic harmony between IKEA and its suppliers fosters long-term partnerships
that result in higher quality, cheaper, and quicker delivery of products and
services.
In conclusion,
IKEA is a multinational corporation with global production and distribution facilities, making
its supply chain extensive and complex. IKEA was an early pioneer in incorporating
sustainability into all aspects of their operation.
Thus, there are numerous internal and external drives that encourage IKEA to develop
sustainable procurement procedures, with the most significant being:
Here are the references that have been used. Thank you for listening.
The References:
1. Bongdap, N. (2023). IKEA Supply Chain Problems and Issues - Financial Falconet.
[online] www.financialfalconet.com. Available at:
https://www.financialfalconet.com/ikea-supply-chain-problems-issues-
management/ [Accessed 14 Oct. 2023].
2. IKEA. (n.d.). Our View on –IKEA Global. [online] Available at:
https://www.ikea.com/global/en/our-business/our-view-on/ [Accessed 14 Oct.
2023].
3. Kalubanga, M. (2012). SUSTAINABLE PROCUREMENT: Concept, and Practical
Implications for the Procurement Process. [online] ResearchGate. Available at:
https://www.researchgate.net/publication/281175084_SUSTAINABLE_PROCUREME
NT_Concept_and_Practical_Implications_for_the_Procurement_Process [Accessed
14 Oct. 2023].
6. Milne, R. (2021). Ikea Shows the Challenge of Sustainability for Companies. Financial
Times. [online] 10 Nov. Available at: https://www.ft.com/content/03ad23b3-2dee-
410c-8347-336c537ad091 [Accessed 14 Oct. 2023].