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Being the central coordinator of the entire IKEA universe.
It take charge of managing and development IKEA products. Additionally, it also looks after its procurement and logistic side.
IKEA Trading Center
ITC serve as a glue between suppliers and the IKEA network at the local level.
They pursue purchasing options for their local geographic area. In addition, ITC also locate potential local suppliers that could serve the national brand

IKEA Distribution Center

Responsible for daily logistic coordination with suppliers
and logistics partners.
Earns its money from the franchise agreements it has with each IKEA store. In this case, every franchisees pay 3% of sales to Inter IKEA
Inter IKEA System

Product designers provide hands-on design advice in terms of the product design, working with suppliers to design core products once materials and price have been set.
Secondly, store designers are brought in at the store level to design store layouts.

Product & Store Designer
Help suppliers in providing raw materials or finished products such as packaging or coatings.
Generally, sub-suppliers are small and thus more easily influenced by IKEA due to their lack of positional power.
Sub-Suppliers

IKEA depends over 2,000 direct suppliers in 50 countries who performs a range of task ranging from furniture to accessories manufacturing.
Suppliers

IKEA establishes relationships with external logistics partners in its supply chain.
These partners helps in tying together IKEA’s vast distribution network and keeping the costs low. Example of logistic partners includes Maersk, TNT.
Logistic Partners

Globally, there are more than 300 IKEA stores that provides direct access point to customers. Apart from serving as “showroom”, small amount of product inventory are also kept in these stores.
IKEA Franchisee Stores
IKEA customers are independent, savvy, and practical-minded. Often, theywant stylish furnitures at affordable prices.
Customer

