Improve and secure the Supplier Capacity Process for

Abstract: To guarantee that the products in the IKEA catalogue are available when requested, IKEA needs to plan and secure capacity. IKEA has developed a process called ONE Supplier Capacity Process to solve supplier capacity issues in a more proactive way. The thesis is focused on suppliers’ in the category Frames and Mirrors with frames in Greater China. Purpose The purposes of the thesis are fourfold: • Map and analyze how IKEA is working with capacity planning today • Implement “to-be”, the common way of working with ONE Supplier Capacity Process • Evaluate and prove savings • Contribute to improvement of the ONE Supplier Capacity Process supported by appropriate theory. Methodology The analysis of the current structure of the Capacity Planning Process at IKEA is based on interviews and the authors’ own observations and experiences at IV IKEA. The data collection from the implementation is based on material from IKEA and conclusions are based on appropriate theory and the authors’ own experience at IKEA. Conclusion The implementation of ONE Supplier Capacity Process has received positive reactions and both suppliers and IKEA employees can already experience benefits from a higher control of capacities and a common way of working together. Further improvements are needed to smoothen the implementation process and create advantages for everyone involved in the project in the future.