| IKEA is global leading furnishing retailer, which own over300stores all over the worldwith exceeding23billion euro annual turnover. IKEA version is to create better life for manypeople. The business scope is to offer various functional and well-designed products at solow price as many people are able to afford it. Low price is the fundamental for IKEAbusiness. IKEA is always looking for better, sampler, quicker solution for lower cost. Thepurchasing organization plays an important role for offering the low price to customer.Almost all the IKEA product is produced by OEM and supply to IKEA’s distributioncenter and then distribute to store. Purchase cost account for70%of total cost. IKEAmanage the supplier thru owned trading company worldwide. The62%purchasing volumecome from Europe and34%from Asia. On country level, China is biggest supplying basewith25%of total volume and Poland/Germany follow.IKEA is taking market share by offering the price so low as many people can afford it.Hence, it is essential to have win-win cooperation with supplier for keeping reducing thecost and increasing the sale volume and grow together. IKEA Qingdao trading company ispurchasing organization as part of global supply chain division set up in Qingdao. The mainrole of the company is to mainly manage wooden product supplier within China.The effective supplier management is the key for IKEA which has70%total cost onpurchasing. The supplier becomes the strategic partner so IKEA’s competitiveness is subjectto supplier management. The supplier development is an effective method to enhance thesupplier management. As a business developer, I face the challenge of cost increasing,non-punctual delivery, unstable quality, as result, the supplier performance is to be improved.Thru the study of supplier development process to shorten the lead time, improve quality andreduce cost so as to increase the competiveness and build up the holistic supplier selectionand management system. |
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