IKEA Turns to On-demand Supply Chain Solutions

Swedish retail giant inks agreement with IBX for Web-based e-procurement and e-sourcing apps

Swedish retail giant inks agreement with IBX for Web-based e-procurement and e-sourcing apps

Stockholm — December 8, 2005 — Swedish home furnishings retailer IKEA has inked an agreement with IBX to use the Scandinavian solution provider's on-demand application for sourcing and procurement as part of an effort to lower indirect goods and services costs.

The global retail giant, which had 2005 fiscal year sales of $17.4 billion, employs 90,000 people in 44 countries. The IKEA Group owns or franchises a total of 220 stores in 24 countries in Europe, North America, Asia and Australia.

The agreement with IBX calls for an extensive program that will see the provider's Web-based e-sourcing and e-procurement solutions introduced throughout the entire IKEA group.

As part of the agreement, IBX will provide an on-demand solution for IKEA including IBX eSourcing and IBX eProcurement, access to the IBX supplier network, as well as sourcing and global implementation services. The whole project is intended to support IKEA in generating savings in its purchasing of indirect material and services globally.

Pontus Björnsson, country manager for IBX Sweden, said that IBX would be working to help IKEA to substantially reduce the cost of purchasing goods and services. "The agreement is particularly important to IBX since it confirms the trend that large corporations are increasingly choosing on-demand solutions for their sourcing and procurement," Björnsson added.

IBX's on-demand solutions for sourcing and procurement are applications provided as services based on technology from various software providers. IBX eProcurement is based on MySAP SRM/EBP from SAP, and IBX eSourcing is based on Emptoris.

Other customers using IBX's solutions include Lufthansa, Ericsson, Deutsche Post World Net and Volvo Group.


Additional Articles of Interest

— For insights into how the top procurement organizations align with their company's broader business to make themselves invaluable, read "Getting to World-class by Getting a Seat at the Table," the Executive Memo column the October/November 2005 issue of Supply and Demand Chain Executive.

— When propane company Blue Rhino says it's serious about automating inventory procurement and ordering processes, that's not just a lot of hot air. Read "Taking Business Process Automation by the Horns," a Best Practices article in the October/November 2005 issue of Supply and Demand Chain Executive.

— A logistics team is called upon to craft supply chain processes that update logistics and inventory management at the growing retail chain Michaels Stores Inc. Read more in "The Art of Supply Chain Optimization," a Best Practices article in the October/November 2005 issue of Supply and Demand Chain Executive.


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