EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS

ABSTRACT The strategy of IKEA Cyprus, as in the rest of the world, is to have the Cost Leadership in the industry. This year they had the opportunity to change their sourcing strategy in order to reduce their logistics cost even more. The change was focused in two sourcing methods a) Direct sourcin...

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Main Author: DIMITRIADIS, LAMBROS
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Online Access:https://eprints.nottingham.ac.uk/21991/
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author DIMITRIADIS, LAMBROS
author_facet DIMITRIADIS, LAMBROS
author_sort DIMITRIADIS, LAMBROS
building Nottingham Research Data Repository
collection Online Access
description ABSTRACT The strategy of IKEA Cyprus, as in the rest of the world, is to have the Cost Leadership in the industry. This year they had the opportunity to change their sourcing strategy in order to reduce their logistics cost even more. The change was focused in two sourcing methods a) Direct sourcing from Suppliers or their consolidation centers in their country b) Through a consolidation center in Athens that did all the sourcing activities from suppliers and could supply all of IKEA�¢����s SKUs at a higher price and a fixed 2 weeks lead time. The basic question that we had to answer was �¢����Which SKU�¢����s must come through direct sourcing and which SKU�¢����s must come through Athens.�¢���� The dissertation objective is to analyze the current supply set up of the IKEA store in Cyprus and the efficiency of the two sourcing methods and how they can be improved. Analyze the characteristics of IKEA�¢����s SKUs in matters of operational requirements, demand pattern and profitability. Also try to find how and what changes in the distribution processes will help to reduce the overall distribution cost while maintaining the stores service level. The dissertation output would be a costing decision tool that can be used every year to evaluate the distribution set up of the Cyprus store and help in the decision making.
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spelling nottingham-219912022-03-21T16:05:05Z https://eprints.nottingham.ac.uk/21991/ EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS DIMITRIADIS, LAMBROS ABSTRACT The strategy of IKEA Cyprus, as in the rest of the world, is to have the Cost Leadership in the industry. This year they had the opportunity to change their sourcing strategy in order to reduce their logistics cost even more. The change was focused in two sourcing methods a) Direct sourcing from Suppliers or their consolidation centers in their country b) Through a consolidation center in Athens that did all the sourcing activities from suppliers and could supply all of IKEA�¢����s SKUs at a higher price and a fixed 2 weeks lead time. The basic question that we had to answer was �¢����Which SKU�¢����s must come through direct sourcing and which SKU�¢����s must come through Athens.�¢���� The dissertation objective is to analyze the current supply set up of the IKEA store in Cyprus and the efficiency of the two sourcing methods and how they can be improved. Analyze the characteristics of IKEA�¢����s SKUs in matters of operational requirements, demand pattern and profitability. Also try to find how and what changes in the distribution processes will help to reduce the overall distribution cost while maintaining the stores service level. The dissertation output would be a costing decision tool that can be used every year to evaluate the distribution set up of the Cyprus store and help in the decision making. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21991/1/08MSClixld4.pdf DIMITRIADIS, LAMBROS (2008) EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle DIMITRIADIS, LAMBROS
EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS
title EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS
title_full EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS
title_fullStr EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS
title_full_unstemmed EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS
title_short EVALUATING THE EFFICIENCY OF GLOBAL SOURCING METHODS AT IKEA CYPRUS
title_sort evaluating the efficiency of global sourcing methods at ikea cyprus
url https://eprints.nottingham.ac.uk/21991/