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IKEA PSM REPORT

Experiment Findings · December 2020

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P
URCHASING AND SUPPLY MANAGEMENT (2020-2021)
ROJECT – IKEA

PROFESSOR- CHRISTINE MARY HARLAND

918679 – MOSTAFA ABBAS MAHFOUZ TAHA

941935 – HERI TRI GUNAWAN SUTOPO
943322 – NAGENDRA PRASATH RAMADURAI
943505 – VENKATA RAMANA KALIVELA

Page 1 of 17
 PREFACE
This report aims at presenting an analysis of Ikea's Procurement and
strategic relationship with a supplier to emphasize innovation in
corporate strategy and performed by using primary and secondary data
and formulating proper assumptions. Before approaching the preliminary
analysis, tis this report presents an overview of IKEA and its respective
Corporate & Purchasing strategy then its Business Model. Next it tells about
how IKEA is dealing with the Circular Economy and analysis of spend-
portfolio of the company to adapt the purchasing strategy for different
categories. Then it deals with supply-based rationalization and supplier
relationships and their problems. Finally, at last it contains our proposal &
conclusions associated with the previous analysis and the significant
impact that the explained solutions might have on the company.

PURCHASING AND SUPPLY MANAGEMENT (2020-21)

PROF. CHRISTINE MARY HARLAND

MOSTAFA ABBAS MAHFOUZ TAHA 10614293

HERI TRI GUNAWAN SUTOPO 10705799
NAGENDRA PRASATH RAMADURAI 10612278
VENKATA RAMANA KALIVELA 10719601

Page 2 of 17
 INDEX
1 IKEA OVERVIEW 4

2 CORPORATE STRATEGY 5

3 PROCUREMENT STRATEGY 5

4 BUSINESS MODEL 6

5 CIRCULAR ECONOMY 6

6 SUPPLIER PORTFOLIO 8

7 SUPPLIER RATIONALIZATION 9

8 SUPPLIER RELATIONSHIP 11

9 OUR PROPOSAL 13

10 CONCLUSION 14

REFERENCES 15

APPENDICES 16

Page 3 of 17
1.IKEA OVERVIEW
IKEA is the world's largest furniture retailer since 2008 which is a multinational group of Swedish
companies headquartered in Delft, Netherlands. their mission is to “create a better everyday life for
many people” and it adopts a “People & Planet Positive strategy to
work towards this vision”. IKEA has 374 stores in 30 countries and
selling more than 12000 products with the help of 1600 suppliers and
Most of IKEA's shops are owned by INGKA Foundation, which is
responsible for supervising, monitoring, and advising the work of the
management board and the management board is the ultimate
decision-making body and is responsible for the formal conduct and
strategic, structural, and finance approvals as well as critical risks.
regarding financial performance the Revenue increased by 5.3% (€39.1
billion (2019)) compared to 2018 whereas the regional retail sales in
2019, Europe occupies 71%, and. Over the past 5 years, the corporate
income tax amounted to approximately 6.9 billion euros. which shows
they are strongly committed to managing operations in a way to MAKE
POSITIVE CONTRIBUTION TO SOCIETY The main reason for their growth
is their main priorities.

Page 4 of 17
 2.CORPORATE STRATEGY.
COST LEADERSHIP PRODUCT DIVERSIFICATION
it focuses on minimizing its production costs to it has been ensured by focusing on innovation and
achieve the Economies of scale which are –high annually introducing a large range of new products
volumes, low costs, and low prices. (Inter IKEA Systems B. V., 2016b). Also, the company
● Lowering costs borne on procuring raw has entered the food industry which in turn has
materials (Inter IKEA Systems B. V., 2016b). enabled it to expand
● Stakeholder integration and commitment its operations, increase
towards quality – by adhering to the IWAY its product and service
(IKEA Way of Purchasing Home Furnishing offerings, and add new
Products). avenues to develop
financially.
● their focus is laid on Minimizing wastage.
● Decreasing operational errors by
The other IKEA’S CUSTOMER-CENTRIC strategy
increasing employee efficiency.
entails feedback from customers
the operational efficiency enables to implement of continuously and also helps to
the policy of reducing prices annually. identify strengths and deficiencies.

Most of the designs of IKEA products are made in

Sweden, manufacturing has been outsourced to
China and other Asian countries.
With the STANDARDIZATION
Strategy, they are producing and
distributing the same standard
products around the world.

3.PROCUREMENT STRATEGY
the main strategies used by the company are Cost Leadership & Product Diversification.

A TOTAL COST APPROACH SHARED EXPERIENCES for Better

Large Volume purchasing helps IKEA exploit the
competitive advantages of Economies of scale and helps
to acquire a high bargaining power. This also makes it
possible to invest in more efficient industrial production
set-ups and to drive the industrialization of new
industries, which leads to better quality and lower cost.
By using standard solutions, components and platforms,
IKEA develops its offering at a faster speed as well as a
lower cost.
Performance
A diverse and concentrated supplier base is
required to meet the needs of businesses and
customers. It has a smaller number of suppliers
and an integrated way of working, which
contributes to the development of products,
standard solutions, components, and platforms.
IKEA calls it Strategic fit.

Page 5 of 17
A LEAN AND EFFICIENT VALUE CHAIN
IKEA develops strategies for categories and action plans with suppliers using the
Purchasing Development and Supplier Development processes. The principle is that
IKEA acts as One IKEA Purchasing for the core processes, with all functions and people
contributing directly towards the business objectives. It has a simple and efficient
organization, with a shorter distance between customers and suppliers, and fewer
people involved.

4.BUSINESS MODEL
The above mentioned are the 2 main different strategies used by IKEA. now
the question is: how do they manage that??

“A good business model” would reveal it. with the help of this, The IKEA
create a relevant offer at a genuinely low price is by shortening the distance
between the need of our customers and the possibilities at our suppliers.

Prices and Volumes

Low costs in all operations are prerequisites for the lowest prices. It gives
big volumes in sales and long-term profits for IKEA and suppliers.

5.CIRCULAR ECONOMY
The furniture industry is characterized by the linear
business model with the take, make and dispose of
perspective. IKEA has addressed this issue by aiming to
transform their current linear business into a circular
business by 2030
Analysis of risk
● The world is facing an era of resource scarcity and
worsened climate externalities
● The application of a linear model leads to landfills and
emissions that hurt our planet and people.
● financial risks of linear business models as the scarcity
of raw material (wood) causes prices to rise
● By facilitating the circulation of products and
materials in different loops, the product life cycle can
be extended, resulting in a reduced need for raw
material and decreased waste generation

Page 6 of 17
The aim is to keep products circulating in the inner loops for as long as possible, thereby keeping the
value of products high while minimizing the need for new inputs.

IKEA’s Solution towards a CIRCULAR ECONOMY BUSINESS MODEL

to become a truly circular business by 2030, IKEA has the initiative to support the idea. There are 3 ongoing
activities: Buyback and tack back service, After sales part, and users’ model. This initiative will contribute
to reuse, prolongation of product life, and customer convenience.
1. BUYBACK AND TAKE BACK SERVICE
Buy-back and take-back initiatives were introduced by IKEA to preserve the value of end of use (EOU)
and end of life (EOL) products that were previously disposed of. Furniture buy-backs and resells provide
an affordable option for many people and are also a move in the direction of becoming a circular business.
2. AFTER-SALES PART
IKEA offers after-sales parts to helps people to maintain, care for, update and repair their belongings
to prolong product lives. By doing this, IKEA helping people to live more sustainably which is part of
developing Ikea to become a circular business in 2030.

3. OFFERING USE ORIENTED- PRODUCT SERVICE SYSTEM

Users models is an initiative program in which IKEA offers products to customers for use instead of
buying in a given period based on the contract. The maintenance of the product will be done by IKEA
during the use-period. Customers will be given the choice to renew the contract, take ownership, or return
the product to IKEA when the end of a contract is reached. When customers prolong the contracts and
take ownership of the product, products remain at the customer. Otherwise, Products returned to IKEA
would need to be collected for further inspected and separated depending on the condition and
destination A returned product will be redistributed either through a new user period or sold as a second-
hand product. To redistribute returned products, some sort of reprocessing is often required before.

Page 7 of 17
6.SUPPLIER PORTFOLIO
IKEA's purchasing organization goal is to optimize the total value chain, contributing to the goal of
providing better products at lower prices. The purchasing classified into seven categories based on
material and supplier. Suppliers are selected based on their competitiveness, including price, capacity,
innovation capabilities, and sustainable performance. IKEA Global sourcing work is centrally planned and
organized by category area

The majority of operating expenses comprise the cost of raw materials and consumables relating to the
manufacturing and procurement of finished goods. Approximately 12% of finished goods are
manufactured by Core Business Industry, the remaining part 88% are purchased from external suppliers
by Core Business Range & Supply. With approximately 1,600 suppliers, and about 1,000 of those are home
furnishing suppliers. The remaining suppliers operate in various industries including components, food,
transport, and other services. Direct transport, storage, and handling cost are included in Cost of raw
materials and consumables IKEA spend a lot of money on buying material Wood, metal and plastic for
core business industry

KRALJIC MATRIX

We consider Core Business Range and supply

IKEA which sells products to retailers from
approximately 12% of IKEA industry and 88%
product sourcing from suppliers. IKEA Supply
procures IKEA products and then supplies
these products to IKEA retailers around the
world. According to the annual report, 2019
Retail sales reach 23.1 billion in revenue.
Through data on Retail sale’s home, we
decide to analyze the Kraljic matrix based on
the Purchasing department spend money on
sourcing finished goods from the supplier.
We classify the purchases into four
categories which its profit impact and
supplier risk create.

Page 8 of 17
Other products such as lighting, textile, electronics are
classified as strategic products due to the highest
percentage of product sales. Its effect on profitability and
operations also can be obtained from a limited number of
qualified sources, because of that it’s necessary to develop
long-term supply relationships.
The leverage product consists of the living room, bed &
bathroom, and kitchen & dining which are the core business
of IKEA. Leverage purchases include strategically important
expenditures in a large marketplace with many alternative
suppliers. This diversity allows exploitation of full
purchasing power, vendor selection, product substitution,
targeted pricing negotiations.
Children’s IKEA is categorized as bottleneck products. It has low strategic importance and is only available
from a small number of sources. The tactics that are relevant in this case focus on volume insurance,
control of vendors, the security of inventories, and search alternatives.
Finally, the last category is a non-critical product. Food is a non-critical item since purchases are of low
strategic importance and ordered frequently from many alternative sources.

7.SUPPLIER RATIONALIZATION
IWAY: The IKEA Way on Purchasing Products, Materials, and Services
(IWAY) is the IKEA Supplier Code of Conduct. It comprises the IKEA
minimum requirements relating to the Environment and Social & Working
Conditions (including Child Labour).

THE FUNDAMENTALS: IWAY is based on the eight-core conventions

defined in the Fundamental Principles of Rights at Work, ILO declaration June 1998, and the Ten Principles
of the UN Global Compact 2000.

LEGAL COMPLIANCE AND IKEA REQUIREMENTS: The IKEA Supplier shall always comply with the most
demanding requirements whether they are relevant applicable laws or IKEA IWAY specific requirements.

CONFIDENTIALITY: The successful implementation of IWAY depends on co-operation, mutual trust, and
respect between the Supplier and IKEA. All observations, discussions, and written information received
from the Supplier are to be treated confidentially by IKEA, its employees, and any third-party organizations
appointed by IKEA.

BUSINESS ETHICS: The values of trust, integrity, and honesty are at the foundation of IWAY and are keys
to its sustainable implementation. It is on this basis that we begin the relationships and through continued
respect of these values that it will grow. All IKEA co-Workers and external business partners must
understand IKEA's position on corruption and its prevention. This has been established in IKEA’s approach
to anti-corruption. This has been communicated to all business partners via vendor letters, which are
signed by all Suppliers.

Page 9 of 17
THE IWAY FORESTRY STANDARD: The IWAY Forestry Standard, part of the IKEA supplier
code of conduct, sets out the minimum criteria for all wood and board supplied to IKEA
which says the part of wood received by suppliers should follow the legal rules and
regulations by regional governments.
IWAY STANDARD TRANSPORT SECTION
This document describes IKEA Transport requirements for all services.
OCEAN TRANSPORT: For owned and chartered vessels, the Clean Cargo Performance Metrics tool and
Clean Cargo Environmental Performance Survey, are filled in, updated, and submitted to IKEA annually.
LAND TRANSPORT AND CONSOLIDATION POINTS: The Supplier submits an Environmental Performance
Survey (EPS) to IKEA before starting a business. EPS is updated and submitted to IKEA annually. Minimum
points in applicable parts need to be reached.
If the Supplier is a member of an IKEA recommended program e.g., US EPA Smart way, it is not required
to submit an annual EPS.
VEHICLE EMISSIONS REQUIREMENT
Only trucks that fulfill the national engine emissions standards of 10 years old or less may be used. In
countries where no emissions standards for engines exist, trucks must be a maximum of 10 years old
For trucks of a gross vehicle weight up to or equal to 3500 kg, only trucks that fulfill national engine
emissions standards of 5 years old or less may be used.
In countries where no emissions standards for trucks of a gross vehicle weight up to or equal to 3500 kg
trucks, must be a maximum of 5 years old.
The supplier must upon request by IKEA submit lists of the trucks that may be used in the performance of
services under this Agreement, either with the equivalent national engine emissions standards or if a
national standard does not exist, the truck age.
All These IWAY requirements apply to all Main suppliers, sub-suppliers, critical suppliers too.
PROCESS FOR A NEW SUPPLIER:
After published of a new product the supplier contacts IKEA to become part of it then Ikea communicates
IWAY requirements then risk rating is given to the supplier based on where they operate and what type
of business and answers provide for the initial questionnaire. If the risks are higher, then there may be a
chance for surprise visits. after that commit the supplier to meet IWAY requirements and share the
commitment internally so that all internal teams know the business with the supplier. then every year
there is a risk review for all the active suppliers by a separate team of IKEA and they can evaluate risk by
top-bottom and bottom-up approaches and there are separate teams to monitor suppliers whether

Page 10 of 17
maintaining IWAY requirements and at last every year they will evaluate the performance of active
suppliers.
With the help of IWAY, IKEA reduced the number of suppliers from 2500 to 1074 for long-term
relationships.

IN-FUTURE: In Europe, environmental, social and governance (ESG) factors are increasing in
significance which says sustainable supply chain is a pre-requisite to support their brand and also for
compliance with heightened regulatory scrutiny.

This means that for procurement teams in Europe, there is a stronger focus on best cost, rather than
low-cost, bearing environmental and social governance factors in mind so they have an auditable track
of vendor policies and behaviors.

This is a lot to take on, particularly with strategic areas of procurement coming to the fore, such as
supplier enabled innovation. Based on this in the future, we assume that ESG factors and sustainable
innovations will play an important role in supplier rationalization.

8.SUPPLIER RELATIONSHIP
Supplier Relationship is an important factor that helps companies to increase efficiency and
profitability. It also helps the supplier to increase their knowledge and exposure to the industry. IKEA
chooses suppliers is not only for quality and right price but also to make sure that our environmental
standards are met, and that everyone involved is treated fairly. The 4 main features of the IKEA Supplier
Relationship are given below.

IWAY: IWAY binds a business contract between IKEA and its suppliers. For production, there are
requirements that suppliers must implement the IKEA Supplier Quality Standard (ISQS) and fulfill IKEA’s
code of conduct IWAY. This aims at ensuring good quality as well as creating the necessary conditions for
reducing environmental and health risks.

Page 11 of 17
LONG TERM RELATIONSHIP: IKEA aims at developing close and long-term relationships with suppliers that
are willing to share IKEA’s values and to grow together with IKEA. over the last decade, IKEA’s sourcing
strategy has been to use suppliers that can deliver large shares of their turnover to IKEA. For example, the
average length of cooperation between IKEA and home furnishing suppliers is currently 11 years.

DEVELOPMENTAL GOVERNANCE STRUCTURE: Supplier upgrading is a deliberate part of IKEA’s global

sourcing strategy”. Accordingly, various kinds of support are fundamental to IKEA’s relationship with
suppliers. It includes focusing on technological aspects or assistance with quality assurance. Also helps
expand production capabilities.

SUSTAINABLE DEVELOPMENT: Part of IKEA’s ambition is to find and develop suppliers that can build up
capabilities to take responsibility for production from an initial phase to large-scale production. They
prefer their suppliers and sub-suppliers to be sustainable and responsible.

STRATEGIC RELATIONSHIP POSITIONING MODEL (SRPM):

A big part of IKEA sales consists of core products

with stable annual sales that reduce uncertainty in buying
materials from Suppliers. Also, IKEA depends on and
collaborates with numerous suppliers that produce similar
products so that they can work together and reduce
uncertainty. Over the last decade, IKEA’s sourcing strategy
has been to use suppliers that can deliver large shares of
their turnover to IKEA, typically IKEA wants suppliers to sell
a considerable share (60-70%) of their total production to
IKEA. With the help of the Strategic Relationship
Positioning Model IKEA is identified to be in Strategic
collaboration.

ACTOR, RESOURCE, AND ACTIVITIES FRAMEWORK:

ACTIVITY LEVEL

Value alignment: IKEA has established “The IKEA Way on Purchasing Home Furnishing Products” (IWAY)
that pushes its supplier network to support a market-driving orientation. It derives from IKEA's business
idea of producing exciting, low price products in a socially responsible and environmentally friendly way.
At IKEA, its implementation is developmental and unique.

Capability advancement: One of the benefits of Supplier Relationship is the development of critical
capabilities. IKEA is successful in initiating relevant capability advancement of the supplier. To ensure
supplier’s advancement IKEA is very particular about providing training and support to enable their
suppliers and service providers to meet new requirements and compliance and to continuously embed
IWAY into everyday business processes.

Page 12 of 17
RESOURCE LEVEL

Supplier adaptations: IKEA gains the suppliers' support and their willingness to adapt through asset
deployments that strengthen their businesses and competitiveness. The suppliers are benefited from
IKEA's support in product technologies, materials, knowledge on the production process, quality issues,
loans, and lease of equipment. Transformations are also suggested by the supplier network.

Effective Internal Market: IKEA established a set of trusted partners within different product areas. This
can be used as an internal market as the firm develops new product ideas.

Local knowledge: IKEA managers listen to supplier ideas and suggestions, which creates a strong
impression on the part of supplier managers, resulting in a more positive and even pro-active attitude
towards the relationships with IKEA.

ACTOR LEVEL

Personal Long-term bonds: The Supplier relationships with IKEA were often a joint responsibility of the
factory managers and technicians. However, other actors also had ties with IKEA. Although workers were
not directly involved in interactions with IKEA managers, they were aware of the importance of IKEA as
the factory's customer as well as of the requirements.

9.OUR PROPOSAL
A1 PLATFORM
BY reading a lot of journals, articles we came up with a
proposal which helps IKEA to solve its problems with
suppliers and also helps to develop the relationship
between suppliers and IKEA is to create a new customized
Platform named A1 which is (All in One). It has many
different features like

1.INNOVATION: This feature brings customer and supplier innovations together like the
customer can create their designs and asked IKEA for production (or) the suppliers can
create their designs with their local knowledge regarding local needs which helpful for
IKEA to become a success in the respective local market and also with this there should be
some competition regarding innovation among suppliers which helps to Understand the
interest of suppliers and their capabilities in innovation & also here Aligning the suppliers
to the strategy of companies and customer requirements.

2.TRAINING: Which is Virtual Educating and motivating the suppliers about advanced
technologies, sustainability & implementing best practices. with this, we are helping the
suppliers to develop themselves in other markets and also the recorded videos of training
will be helpful for suppliers in terms of any doubts they are having and mainly this feature will be useful
in emergency pandemic situations.

Page 13 of 17
3.NEWS AND ARTICLES: The team Constantly updates on technologies, sustainable
innovations, economic situations & laws and regulations of various regions. With this, the
suppliers are up to date in terms of technologies in various markets

4.PROBLEMS AND SOLUTIONS: With this feature the Suppliers Posting issues, seeking
help from other suppliers or IKEA which encourages interaction. Here the time for solving
issues will be very less because here IKEA is not the only one to provide a solution.

5.LEADERBOARD: There will be Supplier rankings based on invocation, costs,

sustainability, participation…etc. to encourage them the presentation categorized annual
awards and other benefits to suppliers from IKEA.

6.FEEDBACK: a) Based on the performances of suppliers IKEA will provide suggestions for
improvement to suppliers.

b) Feedback from suppliers to IKEA.

7.SUPPORT: there should be always 24x7 support in terms of portal and payments.

10.CONCLUSION
An effective relationship with suppliers will help to navigate disagreements and problems and
also, it's easier to negotiate to strike a stronger deal by becoming a favorite client. Having a
strategic SRM program in place can help eliminate supply chain risk, improve supplier services,
and support also organization revenue growth so to be concluded with the help of proposal IKEA
can maintain close relationships with the suppliers and also help them to develop in design and
production of relevant products that market demands.

Page 14 of 17
REFERENCE
Ingka Holding B.V. (2019). Ingka Group Annual Summary & Sustainability Report FY19. Retrieved from
Leiden: Ingka Holding B.V.( https://www.ingka.com/news/ingka-group-releases-its-annual-summary-
sustainability-report-fy19/)

Inter IKEA Group. (2019). Inter IKEA Group Financial Summary 2019. Retrieved from Älmhult: Inter IKEA
Systems B.V.( https://www.inter.ikea.com/en/performance/download-financial-reports)

Ingka Holding B.V. (2020a). Our business areas. Retrieved from https://www.ingka.com/what-we-do/

Ingka Holding B.V. (2020b). Ingka investments. Retrieved from https://www.ingka.com/what-we-

do/ingka-investments/

https://www.ikea.com/es/en/customer-service/suppliers-pub5b81b881

https://www.diva-portal.org/smash/get/diva2:656883/FULLTEXT01.pdf

https://www.ikea.com/gb/en/this-is-ikea/about-us/our-suppliers-a-key-to-building-a-better-business-
pub3b639e02

https://www.tradegecko.com/blog/supply-chain-management/ikeas-inventory-management-strategy-
ikea

https://www.sciencedirect.com/science/article/abs/pii/S0148296319301808

https://paramountworkplace.com/5-tips-to-improve-supplier-relationships/

https://www.dragonsourcing.com/how-organizations-can-improve-supplier-relationship-management-
srm/
https://www.cips.org/supply-management/opinion/2015/may/four-top-tips-to-improve-supplier-
relationships/

https://supplychain-academy.net/strategies-improve-supplier-relationship-management/
https://www.grosvenor.com.au/resources/10-tips-to-improve-supplier-relationships/
https://www.turbinehq.com/blog/8-ways-improve-your-relationship-with-suppliers
https://www.strategicsourceror.com/2020/08/how-to-improve-relationships-with.html
https://leanlinking.com/5-ways-to-improve-your-supplier-relationship-management-process-2/
https://spendmatters.com/2017/04/19/2-strategic-ways-improve-supplier-relationship-management/
https://www.dragon1.com/solutions/business-modeling

6 Lessons every Procurement Team can learn from IKEA’s IWAY | by Kodiak Rating Community |
Medium

Page 15 of 17
 APPENDICES
IKEA has 374 stores in 30 countries and selling more than 12000 products with the help of 1600
suppliers.
CUSTOMER
IKEA DISTRIBUTION DISTRIBUTION INGKA
REGION STORES STORES CENTRES CENTRES
NORTH
AMERICA 64 14 8 0
EUROPE 246 24 15 28
RUSSIA 14 1 1 14
ASIA 40 9 5 3
AUSTRALIA 10 3 1 0
Most of IKEA's shops are owned by INGKA, a holding company controlled by the Stichting INGKA
Foundation.

The supervisory board of INGKA Holding B.V. is responsible for supervising, monitoring, and advising the
work of the management board.

The management board is the ultimate decision-making body and is responsible for the formal conduct
and strategic, structural, and finance approvals as well as critical risks.

IKEA REGIONAL RETAIL SALES Top IKEA retail selling

2019 countries
2019
asia
11%
america
18% 15.00%
13.00%
europe
71% 8.00% 7.00% 6.00%

germany usa france uk china

Page 16 of 17
 Coming to financial performances the Revenue increased by 5.3% to €39.1 billion (2019) compared to
2018.IKEA regional retail sales in 2019, Europe occupies 71%, and countrywide Germany occupies 15%
and stands in first place comparatively

Coming to taxes they are strongly committed to managing

operations in a responsible way to make a positive
contribution to society and taxes are paying as per the laws
and regulations. The taxes paying are important to wider
economic growth and social impact. over the past 5 years,
the corporate income tax amounted to approximately 6.9
billion euros. WHICH SHOWS THEY ARE STRONGLY
COMMITED TO MANAGE OPERATIONS IN A WAY TO MAKE
POSITIVE CONTRIBUTION TO SOCIETY.

RISK MANAEMENT PROCESS:

every year there is a risk review for all the active suppliers by a separate team of IKEA and they can
evaluate risk by top-bottom and bottom-up approaches.

Page 17 of 17

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