Building a sustainable supply chain An IKEA case study
Page 1: Introduction
It is easy to think about the present without considering the future. Consumers want more goods and services to improve their standard of living. The problem is they make choices about goods and services that have long-term consequences for the environment. In our modern world, organisations need to show responsibility. This means that they use resources efficiently, do not harm the environment and consider how what they do affects the ability of future generations to meet their needs.
IKEA aims to be a responsible organisation. It sells low-price home furnishing products around the world. These include furniture and accessories for kitchens, bedrooms, living rooms, bathrooms and children”s rooms. IKEA now has stores in 36 countries around the world. It has come a long way in its 60 years of business.
The direction for the organisation is provided by its vision. This acts as a guide for everybody within and outside the organisation about what IKEA wants to achieve.
IKEA's vision is 'To create a better everyday life for the many people.'
To meet its vision IKEA provides many well-designed, functional products for the home. It prices its products low so that as many people as possible can afford to buy them.
However, in creating low prices IKEA is not willing to sacrifice its principles. 'Low price but not at any price' is what IKEA says. This means it wants its business to be sustainable. IKEA supplies goods and services to individuals in a way that has an overall beneficial effect on people and the environment. Customers all over the world have responded positively to IKEA's approach. This is evident in its increasing sales. In 2006 IKEA had a group turnover of nearly 18 billion euros.