Ikea Building Circular Case Study Rewrite

Please rewrite case study in your own words and add 5 different sources in APA (2017-2022) format with Doi format and 1 biblical source… only keep Simchi-Levi, D., Kaminski, P., & Simchi-Levi, E. (2021). Designing and managing the supply chain: concepts, strategies, and cases. Mcgraw-Hill.(Simchi-Levi et al., 2021).
IKEA: Building Circular Operations
Introduction
Ikea is a Swedish furniture company founded in 1943 by Ingvar Kamprad. The initials of founder Ingvar Kamprad, Elmtaryd, the farm on which he grew up, and Agunnaryd, the nearby village, give the company its name. Its vision is to create a better everyday life for many people. Simcha-Levi (2021) reports that the company operates over 400 stores in 49 countries. The Inter IKEA Group has 40 factories that produce 9,500 products with 1,000 suppliers across the world. The IKEA chain produced 26 million tons of CO2 in 2017, equalling 0.1
percent of the world’s total greenhouse gas emissions. Though a small number of greenhouse gases can be attributed to the company, it still actively seeks to reduce emissions.
The Impact of COVID-19 on Carbon Emissions
According to Tollefson (2021), after rising steadily for decades, global carbon dioxide emissions fell by 6.4%, or 2.3 billion tonnes, in 2020, as the COVID-19 pandemic squelched economic and social activities worldwide. Most scientists and researchers do not expect this to last. Many feel that things will return to normal after the pandemic ends, and emissions will rise drastically. The impact of this is the rising global temperatures. The reason for the decline in CO2 emissions during the pandemic was the lack of transportation movements. As Harvey (2021) reports, the transportation sector is the most significant contributor to greenhouse gas emissions in the United States. Reduced travel drove down the carbon emissions, particularly where citizens were spending more time at home due to quarantines and curfews. With the new economic downturn experienced in the United States, greenhouse gas emissions could drop further. If society begins to change its transportation pattern, like
carpooling or riding bicycles, it could further affect the CO2 emissions.
Risk Chain Management Strategies and Sustainability
Simchi-Levi (2021) discusses four goals of supply chain management. The first goal is to collect information on each product from its production to delivery, providing visibility to everyone involved in the process. The second is to provide access to data from a single point of contact. The third goal is to analyze, plan activities, and make trade-offs based on information from the entire chain. The fourth goal is to collaborate with the supply chain partners. Supply chain managers must be aware of the risks associated with their supply chains.
Hoffman et al. (2014) noted that outsourcing, global sourcing, and environmental turbulence, supply chain risks have recently gained the attention of practitioners. Supply chain risk management has become one of the most active fields in supply chain management research, focusing on handling problems such as supplier quality issues, failed deliveries, and supplier
financial defaults. The common thread among these risks is that they stem from a disruption somewhere in the supply chain, obstructing the flow of materials, funds, or information among supply chain entities. Regarding sustainability, Giannakis and Papodopoulos (2014) consider sustainability as the degree to which organizations’ present decisions impact the future situation of the natural
environment, societies, and business viability. Based on this definition, sustainability strategies should consider how future uncertainty and the risks that decisions may impose on the natural and social environments, and the investment costs required to make supply chains more sustainable.
Reducing Food Waste
According to an article by Evans et al. (2014), in 2011, the Food and Agriculture
Organization of the United Nations (FAO) published its initial study findings on the extent and causes of global food waste, estimating that one-third of the food produced for human consumption is lost or wasted globally. This amount equals 1.3 billion tons of food wasted annually. Furthermore, it found that more food waste occurs during its production. This means the waste that occurs in food production processes is the leading cause of waste. Businesses must now look for ways to tackle food waste across the supply chain. It is also worth noting that the FAO links the issue of food waste to questions of food security, food safety, and economic development. Retailers can reduce waste associated with
these related issues by focusing on doing their part to reduce waste. “Large retailers such as Kroger, Walmart, and others, have the power to influence every link in the supply chain because of their connections with farmers, processors, and consumers” (Kor et al., 2017). Another way to shed light on food waste and combat it is by getting involved in the process. Supermarkets can team up with chefs to show consumers how to utilize leftover ingredients and food. Kor et al. (2017) recommended that food retailers organize “waste less” like ., Kroger’s “Zero Hunger, Zero Waste” initiative, which uses crowdsourcing to interact with
consumers and gather ideas for food waste and hunger prevention.

ANSWER

IKEA: Building Circular Operations

IKEA is a Swedish furniture corporation established by Ingvar Kamprad in 1943. The company initials are obtained from the name of the founder Ingvar (I), Kamprad (K), the farm in which the founder grew up, Elmtaryd (E), and the nearby village Agunnaryd (A). The firm’s vision is to build on improving life every day for numerous individuals. Simchi-Levi et al., (2021) state that the company has over 400 stores in more than 49 countries. They have 40 factories used to produce about 9500 products. The company approximately relies on 1,000 suppliers worldwide. In 2017, the company released 26 million tons of CO2, equivalent to 0.1 percent of the entire global greenhouse gas emanations. Despite the amount of greenhouse emissions, the company actively seeks to lower emissions.

IKEA has focused on a circular supply chain where each product is produced and designed with thoughts of how it can be utilized in future (Ivanov, Tsipoulanidis, and Schönberger, 2021). The circular supply chain is an ideal that inspires companies to take reuse discarded materials and remake products for resale. The new setup at IKEA has helped consolidate and clarify its sustainability ambitions across the whole IKEA value chain. Some of the sustainability ambitions at IKEA include helping suppliers rely on the best practices, instilling sustainable sourcing practices within organizations, increasing renewable energy use and water efficiency within operations, and replacing fossil fuels in the transportation modes with alternative energy sources.

The overall ambition of IKEA is to become a circular supply chain where the company can scrap the perception of waste, treat it, and use it as a valuable production resource. Therefore, the company has focused on designing all the products from the initial production stage to be repaired, repurposed, recycled, resold, and reused, thus generating minimal waste. This strategy has included using only recycled or renewable materials to produce its goods.

The Impact of COVID-19 on Carbon Emissions

Before the COVID-19 pandemic, carbon dioxide emissions rose by 1 percent every year for the last decade (Ray et al., 2021). Renewable energy production has been on the rise, but much of the renewable energy has been used alongside fossil fuels rather than replaced. After a steady increase in global carbon emissions for decades, in 2020, the global carbon emissions reduced by 6.4 percent, equivalent to 2.3 billion tonnes (Nguyen et a., 2021). This is because the COVID-19 pandemic has changed the social and economic activities globally. The government policies and restrictions during the pandemic have drastically changed the patterns around energy demand globally.

Most of the global borders were closed, and individuals were confined in their homes which lowered transportation and consumption patterns. Reduced transportation led to reduced carbon emissions since most citizens spent more time in their homes due to curfews and quarantines. However, the change brought about by the pandemic has only caused a temporary reduction in the global CO2 emissions. With the United States’ new economic downturn, greenhouse gas discharges could fall more. If people begin to alter their modes of conveyance, such as bicycle rising or carpooling this could additionally impact CO2 emissions.

Risk Chain Management Strategies and Sustainability

Risk Chain management entails a systematic technique that focuses on managing the company’s performance and its impact on sustainability (Giannakis and Papadopoulos, 2016). This allows the management to embed the company’s management to related priorities in value chains and business models. Simchi-Levi et al. (2021) has explained the four objectives of supply chain management and their effectiveness. The first objective is to gather data on each produce from conception to supply, thereby gaining insight to all engaged parties. The second objective is to offer data admission through a central contact point. The third objective is to assess, strategize, and carry out trade-offs using data from the whole chain. The fourth objective is to work with suppliers. Supply chain leaders must be mindful of their supply lines’ risks.

Global sourcing, outsourcing, distribution risks, and environmental turbulence have gained the thoughtfulness of supply chain management practitioners. Considerably, management of supply chain risk has been one of the greatest vigorous grounds in supply chain research, with a major focus on handling issues like failed deliveries, supply quality problems, and supplier financial evasions. The collective thing about these threats is that they disrupt the supply chain either by blocking the funds flow, raw materials, or data in the supply chain units. Sustainability strategies should consider how risks and uncertainties in the supply chains make them more sustainable.

Reducing Food Waste

Ishangulyyev, Kim, and Lee (2019) studied the causes and extent of universal food waste, which showed that one-third of the manufactured foods for consumption is wasted or lost. This is equivalent to 1.3 billion tons of wasted food every year. Most of the food is wasted during production, which means that the leading cause of waste occurs in the food production processes. Therefore, businesses need to focus on ways to tackle food waste within the supply chain since food wastage is linked to issues of food safety, food security, and economic development. Big retailers like Walmart and Kroger that have the authority to impact the supply chain should shed light on food wastage and effective supply chain management practices. Proverbs 21:20 says that the wise man saves for the future while foolish man spends whatever they get. Therefore, God frowns on wasting and misusing resources that he has given to mankind.

References

Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. In International Journal of Production Economics (Vol. 171, pp. 455–470). Elsevier BV. https://doi.org/10.1016/j.ijpe.2015.06.032

Ishangulyyev, R., Kim, S., & Lee, S. H. (2019). Understanding food loss and waste—why are we losing and wasting food?. Foods, 8(8), 297. https://dx.doi.org/10.3390%2Ffoods8080297

Ivanov, D., Tsipoulanidis, A., & Schönberger, J. (2021). Operations and supply chain strategy. In Global supply chain and operations management (pp. 87-124). Springer, Cham. https://doi.org/10.1007/978-3-030-72331-6_4

Nguyen, X. P., Hoang, A. T., Ölçer, A. I., & Huynh, T. T. (2021). Record decline in global CO2 emissions prompted by COVID-19 pandemic and its implications on future climate change policies. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 1-4. https://doi.org/10.1080/15567036.2021.1879969

Ray, R. L., Singh, V. P., Singh, S. K., Acharya, B. S., & He, Y. (2021). What is the impact of the COVID-19 pandemic on global carbon emissions?. Science of The Total Environment, 151503. https://doi.org/10.1016/j.scitotenv.2021.151503

Simchi-Levi, D., Kaminski, P., & Simchi-Levi, E. (2021). Designing and managing the supply chain: concepts, strategies, and cases. Mcgraw-Hill.