IKEA

IKEA Quality management system



Table of Contents

Introduction3

Research objectives and methodology3

Sustainability in supply chains - literature review5

Corporate social responsibility - literature review7

QMS in global supply chains9

QMS practices at IKEA10

Introducing a code of conduct13

Educating and encouraging the actors involved15

Conclusions and managerial implications18

References20

IKEA Quality management system

Introduction

Supply chain management is an area of increasing strategic importance due to global competition, outsourcing of non-core activities to developing countries, short product life cycle, and time compression in all aspects of the supply chain (Skjøtt-Larsen et al., 2007). Management attention has moved from competition between firms to competition between supply chains (Christopher, 2005). The capability to establish close and long-term relationships with suppliers and other strategic partners has become a crucial factor in creating competitive advantage.

An increasing number of companies, especially large multinational corporations, have implemented environmental annual reports, sustainability strategies, and voluntary codes of conduct. However, despite many multinational corporations' efforts to implement social and environmental issues in their supply chains, a gap exists between the desirability of supply chain sustainability in theory and the implementation of sustainability in supply chains in practice (Bowen et al., 2001). The problem seems to be that only a limited number of multinational corporations “walk the talk” of CSR.

Research objectives and methodology

In order to understand how QMS practices are implemented in a specific firm, a case study approach has been adopted. According to Eisenhardt and Graebner (2007), case research is a theory-building approach that is deeply embedded in rich empirical descriptions of particular instances of a phenomenon based on a variety of data sources. Case study approach typically answers research questions that address “how” and “why” in unexplored research areas. The results from case studies cannot be subject to statistical generalisation or theory-testing, but case studies can be used to generate theoretical constructs, propositions and/or midrange theories (Eisenhardt, 1989; Yin, 2003).

The specific case, the Swedish home furnishing retail chain IKEA has been chosen on the basis of the following criteria:

* it has several years of experience of working systematically with QMS

* it holds a dominant position in its supply chains, enabling it to influence its suppliers;

* it specialises in the production of consumer goods; and

* it is a brand-owner.

With regard to the first criterion, IKEA is generally recognised as one of the most proactive companies in this specific field in Scandinavia. Regarding criterion two, empirical evidence shows that CSR practices in supply chains are most widespread among large companies. The rationale behind the two latter criteria is that consumer goods tend to be characterised by “value chains in which control of the chain resides with brand name producers such as Levi Strauss and Nike, or large retailers such as Wal-Mart and Tesco” (Jenkins, 2001, p. 7). As brand-owners of consumer goods, they are especially vulnerable to negative publicity about social or environmental conditions in their supply chain.

IKEA may be seen as a front-runner company within the field of CSR in global supply chains in a Scandinavian context. At the same time, it is a family-owned company ...