IKEA’s Supply Chain: Growth on Sustainability

This study aims to provide insights on the influence of sustainability on business performance, focusing on IKEA’s commitment and its robust value chain. The importance of sustainability is at an all-time high as many people are more aware and are now consumer conscious. With this awareness comes its impact on the corporate world as organizations must strive and integrate into their business models sustainability practices. The depletion of our natural resources and the demand of consumers are moving in opposite directions. With our reliance on these resources and our non-stop production and consumption, businesses are in great stakes to preserve and brainstorm on how to adapt to their value chains’ sustainable profitability. IKEA being a consistent top retail brand is studied to provide insight into how this successful conglomerate can integrate sustainable strategies into the core of its business while still performing strong. An overview approach is used to identify the strategies of the company that led them to consistent growth and competitive advantage. A linear supply chain is complex enough, introducing a reverse supply chain with the end goal of becoming a circular supply chain adds various steps and factors into the picture. This study explores the different stages in IKEA’s production process that is consistently aligned with their people and planet strategy and the benefits of this implementation within their value chain.

This paper also aims to shed light on other businesses in hopes of encouraging green business. By providing information, proof can be provided that shows it is possible to systematize sustainable practices and success and that in doing so, it is a win-win strategy that tackles profit, planet, and people issues.