Essays on Critical Analysis: Supply Chain and Logistics Management - IKEA Case Study

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The paper 'Critical Analysis: Supply Chain and Logistics Management - IKEA " is a good example of a management case study. With the advent of electronic commerce and the increase in complexity in a competitive business, firms are looking for ways to create long-lasting relationships with both suppliers and consumers to improve supply chain agility. The supply chain performance indicators and practices combined have facilitated many successful outcomes in ensuring value creation is ensured in various transactions (Borgströ m 2005). The supply chain encompasses activities starting from the transformational of raw materials, all through to the end-user.

Two of the most successful supply chain performance indicators demonstrated by IKEA are efficiency and responsiveness of the management. These two are often distinct and they tend to contrast but to a changing market, identifying the issues that create a better response and those that are overall efficient is the first step towards achieving a competitive advantage (Gosling, Purvis, and Naim 2010). IKEA’ s growth has been tremendous to the extent that today, it opens up to 10-20 new stores every year as their goals double with each new initiative.

This shows that considering the pace of growth in sales ensures the business maintains the right supply chain plan. Looking at the differences and similarities between responsiveness and efficiency with relation to IKEA and the Australian post, therefore, will help create a better understanding of these indicators as well as the practices that facilitate their success. Supply Chain Efficiency Supply chain efficiency is the certainty that in the course of business, no resources are wasted and that all activities carried out by the company are value-adding. Increased inventory levels tend to reduce the efficiency of the supply chain as it adds to the costs in terms of storage and the use of capital.

Secondly, in an efficient supply chain, the management carries out all relevant changes to meet demand at the lowest costs and may rely on an independent ordering process.

References

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Borgström, B., 2015, September. Exploring efficiency and effectiveness in the supply chain: A conceptual analysis. In Proceedings from the 21st IMP Conference.

Gosling, J., Purvis, L. and Naim, M.M., 2010. Supply chain flexibility as a determinant of supplier selection. International Journal of Production Economics, 128(1), pp.11-21.

Grigore, S.D., 2014. Supply chain flexibility. Romanian economic and business review, 2(1), p.66.

Minnich, D. and Maier, F., 2006. Supply Chain Responsiveness and Efficiency: Complementing Or Contradicting Each Other?. School of Business Administration. https://scholar.google.com/scholar?oe=utf-8&um=1&ie=UTF-8&lr&q=related:yjnYqrsKPviWYM:scholar.google.com/

Kopecka, J., Penners, G. and Santema, S., 2010. Flexibility in supply chain management. In 25th conference in Marseille, France.

Lummus, R.R., Duclos, L.K. and Vokurka, R.J., 2013. Supply chain flexibility: building a new model. Global Journal of Flexible Systems Management, 4(4), p.1.

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Pande, A., Raman, R. and Srivatsan, V., 2006. Recapturing your supply chain data. McKinsey on IT, 7, pp. 16–21

Tan, K.C., Kannan, V.R. and Handfield, R.B., 2008. Supply chain management: supplier performance and firm performance. Journal of Supply Chain Management, 34(3), p.2.

The Times., 2013. “Building a Sustainable Supply Chain”, www.thetimes100.co.uk\

Trebilcock, B., 2011. “IKEA: Think Global, Act Local for Warehouse Distribution”, Modern Materials Handling

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