The goal of IKEA store founder Ingar Kamprad was to provide affordable home furnishing products for many people, not just the few. Now legendary for its purchasing strategies, IKEA changed the way organizations thought about and executed procurement departments throughout the world.
This book examines how category management works in practice, using insights from IKEA. Magnus Carlsson, who worked in strategic sourcing for twenty-five years, shares the wisdom he's gained from devising and executing IKEA's purchasing strategies. He provides the guiding principles behind category based sourcing and demonstrates how this can effectively be implemented. Through the use of interviews, case studies, and examples, Strategic Sourcing and Category Management answers the questions: --When is category management a profitable method and why? --How do category teams create real results? --How can category management be organized and implemented effectively?
Many books promise to show how to create value in a supply chain, yet they mostly feel to be lacking when push comes to shove. This book is different; it has a focussed look at reality, with actual experiences from IKEA. If there’s one company that seems to have optimised its supply chain very well, it is IKEA. Learn how to get a grip on your strategic sourcing and category management, amongst many other things.
The book looks at ways of improving the entire procurement process and creating a mutually beneficial environment for both purchaser and supplier alike. Of course, the purchaser will always want a bit better deal, yet there are ways in improving efficiencies and structures that offer benefit to both parties. It is a lot more than just cutting waste.
The author manages to cram a lot into a relatively small book, the contents of which are engaging, informative and incredibly more-ish. Whilst the book is aimed at the larger organisation, something that might be quite established and mature (with all the problems that can come with it), there is no reason why much of this book’s knowledge cannot be utilised or transformed into the operations of a smaller company. Not everything may be relevant, at the moment, yet there are still sufficient takeaway points to provide value.
It is a demanding book due to the sheer quantity of information on offer, sharing the knowledge of an industry professional that has been at the sharp end with a clear global leader who has transformed its own operations over time. It is a highly worthwhile read.
This is a book for those who should be doing things, although the academic need not be left out in the cold: there is an extensive range of notes and bibliographic references for deeper, additional reading. Although the reader may be kept fairly engaged and active consuming and contemplating the advice dispensed within the book as it is!