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Case study
IKEA vets suppliers’ green credentials
IKEA printed 217 million copies of its catalogue in 2014. Not only is this the world’s largest print run, but it is also the largest production ever to be printed on 100 percent Forest Stewardship Council (FSC) certified paper.
As part of its commitment to sustainable living, Inter IKEA Systems wanted to understand the sustainability performance of its paper and print suppliers for the catalogue. Central to this was collecting information on energy, water, emissions and waste that would then be used to evaluate suppliers alongside price and quality.
Deloitte helped Inter IKEA Systems create a tool to collect and process this information. The tool calculates standard metrics in each category and enables IKEA to compare supplier performance. Our work included site visits and desk reviews of the data submitted by suppliers to improve data quality, and we also led webinars for suppliers to improve their understanding of the tool and to get feedback on its user-friendliness.
We also helped Inter IKEA Systems develop a process to engage suppliers and encourage them to improve their sustainability performance. After evaluating data, suppliers that are not performing well for a particular metric are asked to create a Corrective Action Plan stating what actions they will take to improve their performance in the area. Inter IKEA Systems then monitors the supplier’s progress.
As a result, data quality and completeness has improved significantly and Inter IKEA Systems has a clearer view of the sustainability performance of its suppliers. Inter IKEA Systems now also has a structure and process to truly engage suppliers and work with them to improve their performance. Supplier performance and improvement activities now appear in a dashboard that Inter IKEA Systems purchasers use in their procurement decisions.
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