ikea wooden merchandise supply chain …© inter ikea systems b. v. 2000 ikea wooden merchandise...
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© Inter IKEA Systems B. V.2000
IKEA WOODEN MERCHANDISESUPPLY CHAIN
Sofie BeckhamForestry Coordinator, IKEA GroupPwC Global Forest and Paper Industry Conference, May 11, 2006
© Inter IKEA Systems B. V.2000
OUR BUSINESS IDEA… is to offer a wide range of well designed,functional products at prices so lowthat as many people as possiblewill be able to afford them
© Inter IKEA Systems B. V.2000
HOW WE CREATE LOW PRICESClose co-operation:• Suppliers• Product developers• Designers• Sales staff in stores• Customers
© Inter IKEA Systems B. V.2000
PURCHASING1,300 suppliers in 53 countries
Swedwood Group: 35 industrial units in 9 countries
© Inter IKEA Systems B. V.2000
PURCHASING
Top five purchase countriesChina 18%Poland 12%Sweden 9%Italy 7%Germany 6%
North America 3%
Asia 30%
Europe 67%
© Inter IKEA Systems B. V.2000
Social & EnvironmentalRESPONSIBILITY
Low price, but not at any price.
© Inter IKEA Systems B. V.2000
6.4 million m36.4 million m3roundwoodroundwood
WHYWHY should IKEA care aboutforests?
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1
Entrylevel
2
Minimum demands
3
4Wood
4
Level 4 standard
IKEA ForestryStaircase Model
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TransparencyTransparency, , TraceabilityTraceability, , LegalityLegality
© Inter IKEA Systems B. V.2000
What are our global goals?
•100% supplier compliance with IKEAminimum requirements (2009)
•3.6 million m3 certified on Level 4 ofour staircase model, FSC (2009)
© Inter IKEA Systems B. V.2000
Creating the right conditions forthe supply chain…LOCAL focus
• Working to affect change in ourkey sourcing countries
• Building capacity to support ourlong term objectives
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Forest Projects: Building Alliances
• Strategic cooperations
• Projects linked to business,develop conditions for doingbusiness
© Inter IKEA Systems B. V.2000
IKEA Forest Projects
• Illegal logging
• FSC capacity building
• Responsible forestmanagement practices
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WWF and IKEA Cooperation-Russia
• Education and training
• Developing tools – maps
• Supporting uptake of sustainable forestpractice concepts
• Practical approaches to illegal logging
© Inter IKEA Systems B. V.2000
GlobalForestWatch
Intact NaturalForests ofKareliaRepublic andMurmanskRegion
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© Inter IKEA Systems B. V.2000
→ Transparent supply chains
→ Illegal logging
→ Changing forestland ownership
→ Corruption in regulatory mechanisms
→ Need for simple and robust tools!
Many challenges...