International Supply Chain Management - 4274 Words

INTERNATIONAL SUPPLY CHAIN MANAGEMENT – BSB20123-7 Written Examination Stimulus Material Case Study – IKEA About IKEA Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and function at low prices so the majority of the people can afford them. IKEA’s vision is to: â€Å"Create a better everyday life for the many people† Its business idea is To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them The IKEA concept is based on their market positioning statement â€Å"Your partner in better living. We do our part, you do yours. Together we save money† and focuses on a commitment to product design, consumer†¦show more content†¦IKEA buys production capacity rather than product quantities. In other words, they order 10,000 hours of production from their suppliers rather than 10,000 bookcases. Local offices near to the suppliers The operative purchasing work is divided up among four trading agents, supported by 31 trading s ervice offices in 26 countries. This means that IKEA is always close to its suppliers, which is one way of creating good business relations between the companies involved. The trading service office’s employees can make frequent visits to suppliers and follow the production process closely, enabling new ideas to be tested and regular quality controls to be made. They are also responsible for the important task of monitoring working conditions, social conditions and the external environment around the factories, and for checking that these are constantly being improved in accordance with the code of conduct in The IKEA Way on Purchasing Home Furnishing Products (see Appendix 1). The suppliers, in turn, can have confidence and faith in IKEA. While IKEA know they are a demanding customer, they also feel that they are fair, professional and honest in their dealings. China – number one on the IKEA purchasing list Today the majority of IKEA products (66%) are purchased from manufacturers in Europe. However, the largest single country for purchasing is China. Top 5 purchase countries †¢ China 18% †¢ Poland 12% †¢ Sweden 9% †¢ Italy 7% †¢ GermanyShow MoreRelatedInternational Supply Chain Management Case Study Essay1463 Words   |  6 Pages 4.782 international supply chain management Case Study Wang anqi 20142345 Word Count: 2641 Introduction Late accentuation on worldwide environmental change is expanding weight on automotive executives to make the right decisions in many areas to settle on the right choices in numerous zones, including RD and assembling. Shiv industry is the automotive parts industry face challenges from the lower end competition comes from the unorganized sector and the higher end of technologyRead MorePursuing and International Career in Logistics and Supply Chain Management1924 Words   |  8 Pagesand Supply Chain department for past four years. I appreciate this opportunity to introduce myself to the admission committee and to apply for Management Engineering Laurea Magistrale at esteemed Politecnico di Milano. I believe my educational and professional background will enable me to make a strong contribution for the research and coursework carried out for the Master’s degree. This academic objective is a natural step towards my ultimate professional ambition of pursuing international careerR ead MoreGlobalization of Supply Chain Management1422 Words   |  6 PagesConclusions The globalization of supply chain management is the natural outcome of today’s expanding consumer markets as companies struggle to meet the dynamic needs of growing markets and new customer segments. It has led to a high degree of specialization under an ever-expanding world market. People with special skills can work with little overheads and market globally. Small companies can flourish. Introduction The pace of globalization on the supply chain continues to foster opportunitiesRead MoreLi Fung1747 Words   |  7 PagesThe goal of effective supply chain management is to gain competitive advantage through optimizing flows within the enterprise. The Hong Kong listed company Li Fung Ltd represents one of the world s best examples of achieving this goal. The company financial history clearly tells that story. Just last year, LF saw profit attributable to shareholder increase by 23%. In fact, over the past 14 years, LF has seen steady compound annual growth rate of 22%. Not bad performance for a small familyRead MoreReducing Complexity Levels Within Supply Chain Management1410 Words   |  6 PagesReducing Complexity Levels Within Supply Chain Management Supply chain management (SCM) practitioners are often asked to discuss the top challenges they face in today’s business environment. Since change is constant, the challenges experienced today will at some point change over time. Over all, when taking into consideration all the challenges found in today’s SCM environment, one may wonder how it is possible to effectively and efficiently manage activities within a complex SCM. The answerRead MoreCase Study : Supply Chain Management1344 Words   |  6 PagesTo succeed in today’s competitive markets companies must learn to align their supply chains with the demand of the markets they serve. Supply chain performance is now a distinct competitive advantage for companies who excel in this area. Supply Chain Management(SCM) is defined as a set of approached utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed at the right quantities to the right locations and at the time in orderRead MoreAn Empirical Analysis Of Supply Chain Risk Management1692 Words   |  7 PagesHoenig in the paper titled â€Å"An empirical analysis of supply chain risk management in the German automotive industry† applied the practices of supply chain risk management by surveying sixty-seven manufacturing plants in German automotive industry. The need of real empirical research in supply chain risk management to help analyzing supply chain risk and test the previous research proposed instruments that can be applied for supply chain risk management was the motivation of this work. In this paper, theRead MoreKey Term : Just For Time Productions Or Systems1198 Words   |  5 Pagesavailability of the production system. Th e idea of manufacturing goods in a systemic process comprised of balancing inputs and outputs across the value chain involve Just-in-time productions or systems. This production system incorporates a philosophical approach to integrated productions plans and schedules that are fluid enough to continuously adjusts with supply and demand variables in real time. This high-level of production and coordination in manufacturing can only be reached with an understanding ofRead MoreAirline And Trucking Fleet : Ups1047 Words   |  5 Pagesfreight across vast oceans. This global network provides customers with supply chain flexibility and increases supply chain surplus for UPS. Leading-edge Technology: UPS develops and implements proprietary logistical software technology that increases supply chain functionality and improves logistics management internally and externally. For customers, UPS software allows clients to send, track, and manage packages and supply chain partners. For internal clients, UPS has developed a wide range of efficiencyRead MoreDistribution Systems: Concentrated Clustering812 Words   |  4 PagesClustering | Case Assignment - Module 2 | Jaime 10/30/2012 | The Core of Concentrated Clusters Since the definition of supply chain management is, the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer, it only makes sense then that placing each part of the supply chain in close proximity to one another makes for easier oversight. (Rouse, 2010) This is the basis for the clustering theory. (DeWitt