Location of the future supplier base in a dynamic environment : - Case study within IKEA of Sweden

Abstract: Background: The markets conditions are changing and recent research show that the era of offshoring manufacturing and jobs to foreign countries now is coming to an end. Nearshoring gives the possibility to overcome the challenges that offshoring causes. Furthermore, both the internal parameters and key driving forces in the environment is important to consider in the decision of where to locate the future supplier base. Purpose: The purpose for this thesis is to identify how the future supplier base for the glass lighting segment should be located, taken into consideration the internal parameters availability, sustainability, product quality and cost, and the key driving forces in the environment. Methodology: In this thesis a case study approach is used, with a positivistic perspective and an abductive approach. To identify the key driving forces, the methodology of a scenario analysis is used. Conclusions: Considering the internal parameters and the key driving forces in the environment a use of three nearshoring hubs, closely located to the sales markets, Asia, Europe and North America, is supported for the future supplier base for the glass lighting segment.