2.ES system of IKEA
3.Case study
4.Conclusion
It is used the computational, data storage, and data transmission power of modern information technology to support business processes, information flows, reporting, and data analytics within and between complex organizations.
Part 2, I’ll talk about es system of IKEA.
So, what is ikea?
Some korean students may not have heard about ikea.
Ikea is a swedish A Swedish furniture company founded in 1943 by Ingvar Kamprad
It entered into US market in 1985, philadephia.
The core value of ikea is “to offer a wide range of home furnishings with good design and function at prices that as many people as possible will be able to afford.”
At the moment, it is one of the biggest furniture company and there are 300 shopS in the World, Brand Value : 6.5 billion Euro (2008) and 410 million people purchase in IKEA
Scm in ikea.
First of all, IKEA’s supply chain objective is finding cheaper labors and materials. As the result, ikea has been increasing the amount of purchasing from developing countries. For 10 years, it increased 16% and it was useful to decrease production cost.
2. Characteristic
3. As detail, ikea is using labor cost difference between countries.
Simply, they purchase from developing countries in a cheap price and sell their product to developed countries expensively.
They are using cheap labors from various countries, if u see the chart, we can find that the average salary of developing countries is only 1.75 euro. So, ikea make them produce items, and sell it to quite rich countries. Actually, 95% sales are occurred in europe and NA and quarter of suppliers are from eastern europe.

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