Strategic Sourcing and Category Management: Lessons Learned at IKEA

IKEA uses strategic sourcing and category management to create advantages through direct and indirect sourcing, with 25 years of experience from IKEA's purchasing strategy. Magnus Carlsson shares insights on when category management is profitable, how teams create value, and the main approaches in different categories.

Format: Paperback / softback
Length: 296 pages
Publication date: 03 May 2019
Publisher: Kogan Page Ltd

Strategic Sourcing and Category Management delves into the intriguing strategies employed by IKEA and other cost-leading companies to achieve remarkable advantages through direct and indirect sourcing. With a wealth of 25 years of experience at IKEA, where he held the crucial role of developing and implementing the company's purchasing strategy, author Magnus Carlsson offers invaluable insights into the realm of category management. In this revised edition, Magnus has introduced fresh themes, including examples and references from renowned companies such as Maersk, Carlsberg, P&G, and Aldi, showcasing the widespread application of cost leadership principles that extend far beyond the realm of home furnishings.

While IKEA's cost leadership principles are evident in its sourcing of categories such as food, components, materials, transportation, and indirect materials, with a total purchasing spend of approximately €7 billion, the book's true value lies in its ability to illustrate how teams can create exceptional value by adopting a different mindset and posing thought-provoking questions. By transcending the confines of mere tools and processes, readers gain a deeper understanding of the underlying principles that drive success in the competitive business landscape.

Through his comprehensive and insightful analysis, Magnus Carlsson empowers readers with the knowledge and tools necessary to implement effective category management strategies in their own organizations. Whether you are a procurement professional, business leader, or aspiring entrepreneur, this book provides a valuable roadmap for navigating the complexities of supply chain management and achieving sustainable competitive advantage.

Weight: 456g
Dimension: 156 x 233 x 17 (mm)
ISBN-13: 9780749486211
Edition number: 2 Revised edition