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Unformatted text preview: le 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. IKEA 28962_Ikea 81 28962_Ikea 9/6/08 10:41 Page 2 Sectors of industry and sustainable supply chains
Consumers: purchasers and
users of the products. When consumers go to a retailer like IKEA, they will be looking at the different ranges of
products and how they are presented. They may also look for quality customer service.
However, consumers may not be aware that before products reach them, they must move
from being raw materials through a variety of stages to become finished products suitable for
sale. This is known as the supply chain.
The supply chain involves a flow of production and processes through each of the three
industrial sectors: Retailer: organisation involved in
providing activities related to
selling goods or providing services
for the final consumer.
Customer service: range of
activities provided by a retailer
designed to meet the needs of
Supply chain: the flow of goods,
materials and services from raw
materials through to a final
Recycled: the recovery of
materials from an old product
which are used to make a new
Renewable: materials that can
be replaced or replenished. IKEA takes its responsibilities seriously and organises its operations in order to have a positive
effect upon the environment.
• It aims that all the products and materials it takes from the primary sector do not harm the
• Its products are manufactured in a responsible way.
The following sections look in detail how IKEA has achieved its aim to be a responsible
business in each of the three sectors of the supply chain. The primary sector
The primary sector involves the development of the raw materials. IKEA is not a primary sector
organisation but it needs raw materials to develop its products. It therefore works closely with
primary sector suppliers to ensure a sustainable impact on the people and the environment in...
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This note was uploaded on 09/29/2011 for the course MGT 3501 taught by Professor Chang during the Fall '10 term at Georgia Institute of Technology.
- Fall '10