CHAPTER 7Building a Supply Chain to Deliver Low Prices

If the product range is where the point of difference regarding the offer is established, the supply chain is where much of the price competitiveness and profitability are created. The key to being successful in this area is the ability to control the entire supply chain from production to the retail outlets.

Importance of the Buying Organization

Together with the stores, the buying organization has always been the part of Ikea that holds the highest status. This can be explained partly by the impact the buying organization has had on the price competitiveness of the company and partly by the Ikea culture where “being close to reality,” “being in the frontline,” and learning from the shop ...

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