Ikea

Generally you can differentiate the supply chain or supply network of Ikea by two perspectives:

• The supplier side (a so-called Tier-1-supplier is a direct supplier, Tier-2 is a supplier of the Tier-1 supplier, Tier-n is a supplier at any level in the Ikea supply network).
• The buyer side (a so-called Tier-1 buyer is a direct buyer, Tier-2 is a buyer of the Tier-1 buyer, Tier-n is a buyer at any level in the Ikea distribution network).

To ensure business stability and continuity, a supply chain or supply network must be constructed in such a way that external influences can cause as little damage as possible to Ikea. This applies both in the area of procurement (the loss of a supplier must be covered by an alternative supplier) as in the area of sales (the loss of a buyer must be covered by an alternative buyer).

Risks can generally be considered as the non-availability of goods, through cutback or complete halt of production, or the potential loss of business partners, violating compliance rules (e.g. protection of the environment, labor legislation) and thus drop out of the supply network.

This risk should not necessarily be limited to the direct business partner (Tier 1), it involves the entire supply chain, unless sufficient alternative suppliers and buyers have been put in place.

Get an overview of the international supply chain of Ikea (upstream/procurement and downstream/sales) from Tier-1 to Tier-n

E.G.: Tier-1 Buyer Sci Babylone

ABRAMS world trade wiki not only shows direct suppliers and customers of the first tier (Tier-1). With just one click in our tool Supply Chain Intelligence you get a comprehensive insight into the supply network with multiple tiers (Tier-n) beyond the first tier.

Each tier in the supply chain or supply network on the supplier side of Ikea involves a single risk. The more tiers, the more difficult it is to analyze and monitor the business partners. Suppliers of suppliers are generally unknown, so there is already an increasing risk at the second (Tier 2) level.

If e.g. a first Tier supplier is not adding any value, the supply chain can be shortened and the risk of failure can be minimized by skipping this supplier. A previous Tier-2 supplier now turns into a Tier-1 supplier, which we call "go-direct". In our tool Supply Chain Intelligence as far as international suppliers are concerned, this analysis can be done with one click:

Analyze the potential of shortening and therefore stabilizing the supply chain of Ikea

The performance of a company depends fundamentally on its buyers. Therefore, a largest possible base of stable buyers is crucial. A total of 4 international buyers of Ikea could be identified in bills of lading. For example, one of the buyers is the company Sci Babylone, which has received 1 shipment.

Get an overview of the international sales and its 4 buyers of Ikea with Company Transparency.

Based on the analysis of international bills of lading (bill of lading/ bills of lading/ BOL), a total of 3 different product categories sold by Ikea, can be identified.

These are classified by means of HS codes (HTS codes or customs tariff numbers).

For example, HS code 940340 classifies the following products:

„Wooden furniture for kitchens (excl. seats)". This HS code was sighted 2 times in total.

Get an overview of internationally sold products by Ikea with Company Transparency

Each tier in the buyer side of the supply chain or supply network of Ikea is adding value and therefore costs. The more tiers, the more expensive the product gets. Supply chains are normally not very transparent, trade secrets are part of the survival tactics in each stage of the value chain, especially for trading companies.

If e.g. a Tier-1 buyer from Ikea that primarily trades products and doesn’t add any value (only fulfills the distributor function) it is possible to shorten the supply chain downstream giving a potential to optimize profit margins for Ikea. A previous Tier-2 buyer now turns into a Tier-1 buyer, which we call "go-direct". In our tool Supply chain Intelligence as far as international buyers are concerned, this analysis can be done with one click:

Analyze the potential to shorten the supply chain and optimize the profit margins on the sales side of Ikea

Each company contributes significantly minimizing risks for its buyers, through its own stability. Internal risks (endogenous factors) can be e.g. financially (financial ratios, free cash flow, balance sheets) or operationally (production, lead times). Since 2021, external risks have increased due to worldwide shortages and are an important factor as to whether a supplier such as Ikea can itself reliably deliver due to external dependencies (exogenous factors).

To assess this, data analysis should be conducted to get practical answers:

The more constant outgoing shipments of a company’s, the easier it is to assess potential problems for a supplier like Ikea

Operational aspects like a stable supply chain, an in-house production and reliable logistics define sustainable performance.

Since 2021, global supply shortages have increasingly added external factors as to whether a supplier like Ikea can deliver reliably itself through dependencies.

Based on the statistical trend of shipments (in terms of the number of shipments and respectively the quantity of goods) the current supply and performance capacity can be indirectly analyzed.

Generally you can differentiate the competition of Ikea by the purchase and sales perspective.

• Start the competitive analysis on the purchase side.
• Start the competitive analysis on the sales side.

Competitors of Ikea on the purchase side (procurement of raw materials and components for production or distribution) are exposed on ABRAMs wiki under Competitive Intelligence, purchased products, classified by HS-Codes or by top product terms.

Competitors on the sales side of Ikea (selling raw materials or components for production or distribution) are exposed on ABRAMS wiki under Competitive Intelligence, sold products classified by HS-Codes (e.g. 940340, 940350) or by top product terms.