Inter IKEA systems B.V. 2012 ДОБРЕ ДОШЛИ VÄLKOMMEN WELCOME 04.02.2016, Sofia, Bulgaria
Inter IKEA Systems B.V. 2015 What will we share today? Purchasing Operations area South East Europe Taskforce Bulgaria project Doing Business with IKEA Start up a supplier general information IWAY standard and Code of Conduct Quality in focus in everything we do Forestry and Better Cotton Supplier classification
Inter IKEA Systems B.V. 2015 Moldova Romania Serbia Bosnia Bulgaria Macedonia Greece Turkey Turkmenistan Egypt 120 home furnishing suppliers in more than 11 countries 162 people working in Purchasing 3 offices 36 average age aprox 10% from total IKEA Purchasing What means Purchasing SEE?
Purchasing SEE in IKEA Purchasing Out of 7 CAs 5 are present in SEE Out of 34 Categories 15 have business teams located in SEE ~ 44 people working in Purchasing SEE ~ 80 people working in business teams
Some products made in SEE Inter IKEA Systems B.V. 2015
Taskforce Bulgaria
H i s t o r y IKEA is sourcing products in Bulgaria from the 70s Business started with wood articles, mainly pine Historically Bulgaria was strong in Wood, Metal, Glass, Ceramic Inter IKEA Systems B.V. 2015
IKEA has a growth agenda & defined a long term strategy to double the business until 2020 IKEA would like to expand also the supplier base and continue to develop together with the existing ones, products with good quality, low price, sustainable and available Inter IKEA Systems B.V. 2015
Bulgaria- Balkan FY15 Inter IKEA Systems B.V. 2015 January 2015 we got a task to exploit further the business possibilities in Bulgaria Main goals: Develop and continue the growth with the existing suppliers Industry mapping in Bulgaria Select the right new partners/suppliers for IKEA From 3 rd of May - 9 th of May 2015 Ingvar Kamprad together with IKEA purchasing people and designers met existing IKEA suppliers and potential new ones End of an inspiring week full of energy, good discussions, nice moments and a lot of learning
Some pictures from the visit Bulgaria- Balkan FY15 Inter IKEA Systems B.V. 2015
Some pictures from the visit Bulgaria- Balkan FY15 Inter IKEA Systems B.V. 2014
Some projects on going Inter IKEA Systems B.V. 2015
Some projects on going Inter IKEA Systems B.V. 2015
Overall summary from the project Inter IKEA Systems B.V. 2014 Updates Bulgaria Task force wk 19 9 Potential new suppliers in pipeline 2 solid wood 1 layer glued 1 combined materials metal, plastic, wood, solid wood 1 Flat line 1 Wool carpets and blankets 1 Mattress and bed base 2 Aluminum 51 New articles started or under development from May 2015 until now. Expected Turnover 18-20 MEUR
Next steps Develop and Continue the growth with the existing partners Industry mapping in Bulgaria Select the right new partners/ suppliers for IKEA Continue and finish the projects already started Inter IKEA Systems B.V. 2015
Inter IKEA Systems B.V. 2015 DOING BUSINESS WITH IKEA
A little about us Where we come from Inter IKEA Systems B.V. 2015 The IKEA Concept was born in southern Sweden, in the barren landscape of Småland. Our values of e.g. togetherness, humbleness and thriftiness grew out from this background. IKEA values: Ten key expressions summarizing the IKEA culture Leadership by example Simplicity Striving to meet reality Constantly being on the way Cost-consciousness Constant desire for renewal Humbleness and willpower Daring to be different Togetherness and enthusiasm Accept and delegate responsibility IKEA Supply AG 2012
A little about us 1. IKEA BUSINESS MODEL Bringing suppliers and customers closer The need of our customers Inter IKEA Systems B.V. 2015 The possibilities at our suppliers IKEA Supply AG 2012
Creating the low price in practice Creating the low price in practice Inter IKEA Systems B.V. 2015 by work in the reality of our customers and suppliers at the same time. Focus on customers Focus on suppliers IKEA Supply AG 2012
Customers Inter IKEA Systems B.V. 2015 Suppliers IKEA Our suppliers and customers are our best friends. The IKEA Concept is there to shorten the distance between them. IKEA founder, Ingvar Kamprad
What can you as a supplier expect of IKEA? Become global industry leader through low costs and big volumes Inter IKEA Systems B.V. 2015 Profit and growth from volume and by growing IKEA together. Become global industry leader Our constant desire to reach more IKEA customers with better products at lower prices drives development, and the growing volumes becomes our enabler to develop. Knowledge transfer IKEA provides knowledge about the customers, life at home and the product. We can also offer industry reference, ideas and knowledge on how to improve production. IKEA Supply AG 2012
A little about us Everyday performance Inter IKEA Systems B.V. 2015 Everyday product quality: well-designed, functional, customer-friendly, durable and safe to use High social & environmental responsibility, a foundation for our business Products always available, a prerequisite for sales We reduce cost to ensure affordable products for the many people We develop these qualities in synergy.
What can you as a supplier expect of IKEA? In partnership, suppliers can expect IKEA: to buy big volumes to be reliable, purchasing commitment to offer long-term business cooperation and orders to pay on time (30 days) to adapt our products to production to contribute to efficient production to care for the environment to support material- and energy saving techniques to take a clear standpoint on working conditions to respect different cultures to have clear and mutually agreed commercial terms growth Inter IKEA Systems B.V. 2015 IKEA Supply AG 2012
What does IKEA expect of you as a supplier? Partners for growth Inter IKEA Systems B.V. 2015 Shared business model and values Low costs & big volumes Everyday performance Everyday development High Quality Standard High Social & Env. Standard High Availability High efficiency, production competence and product competence Ability to grow Growth IKEA Supply AG 2012
Our range. Our identity. 26 IKEA Supply AG 2012
Our range. Our identity. Inter IKEA Systems B.V. 2015 - IWAY standard and Code of Conduct - Quality Compliance Standard (GO/NOGO) - Forestry - Supplier Classification IKEA Supply AG 2012
What does IKEA expect of you as a supplier? Sustainability Inter IKEA Systems B.V. 2015 28 IKEA Supply AG 2012
The IKEA IWAYstandard Minimum Requirements for Environment, Social & Working Conditions when Purchasing Products, Materials and Services. In the best interest of. the child the worker the environment 2011-10-21 Version 1.2
Inter IKEA Systems B.V. 2015
2011-10-21 Version 1.2 IWAY Implementation
Forestry We have strong and clear forestry requirements and make sure that 100% of the wood we use meets these standards. We support the Forest Stewardship Council (FSC), and we have helped to certify over 35 million hectares of forest, which is about the size of Italy. Our goal is to have all wood come from sustainable sources (FSC or recycled) by 2020.
Forestry For our region 100% FSC is a must from 1 Sep 2016 2011-10-21 Version 1.2
Better Cotton Our cotton is grown in line with the standards of the Better Cotton Initiative, benefiting farmers and the environment. So far, we ve worked with over 110,000 farmers to reduce the amount of chemicals required, helping reduce pollution and strengthening local economies. 2011-10-21 Version 1.2
Inter IKEA Systems B.V. 2014 Quality Compliance Standard Package (GO/NOGO)
Throw-away products are not IKEA. Whatever the Customer purchases shall give long-term enjoyment. Inter IKEA Systems B.V. 2014 Ingvar Kamprad The Testament of a Furniture Dealer
The IKEA products shall always Inter IKEA Systems B.V. 2014 be in compliance with all relevant legal requirements and market regulations; be safe to use and not present any foreseeable health and safety risks; have clearly defined, implemented and verified product requirements; be durable, functional, customer friendly, well designed and produced in a sustainable way, resulting in well finished products. The low price is only meaningful when the above characteristics meet and exceed customer needs and expectations.
The Quality Compliance Standard (GO/NOGO) Inter IKEA Systems B.V. 2014 It s a Compliance Standard It s legal agreement Must be always fulfilled Requirements audited every 2 years 5 sharp requirements: Product documentation, Connect system, Special processes process control, Final inspection, Identification and separation of non-conforming goods
Supplier Classification 39
Supplier Classification Inter IKEA Systems B.V. 2014 IKEA Prioritized Supplier (P) IKEA Potential prioritized Supplier (T) IKEA Critical Supplier (C) IKEA Supplier (S) IKEA Product development/ Innovation Supplier (I)
Customer in focus in everything we do! IKEA suppliers our partners for growth
Thank you! Inter IKEA Systems B.V. 2015
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