Title Strategic Sourcing and Category Management, 2/e
Subtitle Lessons Learned at IKEA
Author Magnus Carlsson
ISBN 9780749486211
List price GBP 39.99
Price outside India Available on Request
Original price
Binding Paperback
No of pages 296
Book size 152 x 228 mm
Publishing year 2019
Original publisher Kogan Page Limited
Published in India by .
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
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“This book is an excellent description of how to design processes and create value in a
supply chain.”

Arja Taaveniku, Chief Officer & Supply Chain Officer at Kingfisher


“Magnus Carlsson has written a book that is largely sensational. I have not seen any equal presentation of how an organization can operate efficient sourcing. The book’s target audience is broad. It’s about to run an efficient sourcing operation with relevance far beyond Ikea. I think anyone who in any way comes into contact with purchasing, executives in charge of streamlining their organization, purchasing managers, purchasers, and even students will benefit greatly from the book’s content.”

Björn Axelsson, Professor, Stockholm School of Economics


“I like the book-no, I love it! Good structure and incredibly deep but written in a simple way with very relevant examples of the described theory. For me, this book offers a new level-still in a simple way that makes me want to learn more and in a way that makes me anxious to try out my new theoretical knowledge.”

Peter Huber, Group Process Manager, IKANO


“IKEA’s strategic sourcing methods might not work for every company, but they certainly have a broad reach that goes far beyond the furniture retail niche. This book can help you discover if a category management program is a profitable choice for your organization. And if it is, you’ll gain valuable advice and examples of setup and implementation from a real-world practitioner...Connecting theory with practice, the book draws upon existing practices and new tools to explain category-based sourcing, and how to effectively implement it.”

Inbound Logistics


“A procurement book that is both philosophically interesting but also as practical and grounded as any I have ever read; it is a hands-on guide...This is another highly recommend book from Kogan Page, and essential reading for anyone who is serious about procurement.”

Peter Smith, Spend Matters


How is it possible to sell a kitchen at 30 per cent below market price? Why are hot dogs cheaper in IKEA than in the supermarket? How can IKEA sell the Lack table at half the price it was when it was launched 35 years ago and how can it be achieved with a substantial profit?
Strategic Sourcing and Category Management examines how IKEA-and other cost leading companies-use category management to create advantages with direct and indirect sourcing. With 25 years’ experience from IKEA, where he had the responsibility to develop and execute the company’s purchasing strategy, author Magnus Carlsson shares his insights on important topics: when category management is profitable and why; how teams repeatedly create value and results; what the main approaches are in different categories; how a company implements category management; the difference between success and failure.

In this new edition of Strategic Sourcing and Category Management, Magnus Carlsson has added new themes including examples and references from companies such as Maersk, Carlsberg, P&G and Aldi, illustrating the application of cost leadership that spans far beyond IKEA. Even in IKEA, the cost leadership lessons are not limited to home furnishings as the company is sourcing categories such as food, components, materials, transports and indirect materials, with a total purchasing spend of approx. €7 billion. However, maybe even more importantly, the book illustrates how teams create value by thinking differently and asking the right questions, allowing an understanding that goes beyond mere tools and processes.


List of figures

Forewords to second edition

Foreword to first edition by Björn Axelsson

About the author



Chapter 1: Lessons learned at Ikea • Where does Ikea come from? • Where is Ikea’s purchasing going next? • What results has Ikea produced? • How is the organization led? • Some of Ikea’s challenges • What can other companies learn from Ikea?

Chapter 2: What is category management? • Strategic levers in category sourcing • Summary and reflections

Chapter 3: Leading category sourcing • Is the best process no process? • A category sourcing process • Reflections

Chapter 4: The hunt is on • Project directive • Bundling products • Goals and demands • Reflections

Chapter 5: Where is the money? • Spend analysis • Supplier evaluation • Market survey • Project plan • Summary and reflections

Chapter 6: Creating value • Creating value in the supply chain • Creating value with the supplier base • Creating value with the products • Making risks manageable • Developing the strategy • Reflections

Chapter 7: The moment of truth • The tendering process • Contract • Implementation • Reflections

Chapter 8: Control performance and create more value • Performance management • Creating value in product development • Create value with suppliers • Questions and reflections

Chapter 9: Different categories and other perspectives • Sourcing semi-manufactured materials • Sourcing components • Sourcing branded products • Indirect sourcing – standard products • Indirect sourcing – transport (in Europe) • Indirect sourcing – professional services • Questions and reflections

Chapter 10: From theory to practice • 1. Establish a sense of urgency • 2. Create a guiding coalition • 3–4. Develop and communicate a vision and a strategy • 5. Empower employees for broad-based action • 6. Generate short-term wins • 7. Consolidate gains and produce more change • 8. Anchoring new approaches in the culture • Yet another change • Summary

Chapter 11: Success or failure?

Appendix Tools and models


References and further reading


About the Author:

Magnus Carlsson has 30 years of experience in strategic sourcing, of which 25 were at Ikea. He was the Strategic Manager of the supply chain organization with responsibility for developing and managing the implementation of Ikea, purchasing strategy, a task that included, among other things, designing and implementing the category sourcing organization. He has also been the purchasing manager for several international purchasing offices and was responsible for Ikea, global textile, mewl and veneer furniture sourcing as well as for central sourcing of components and raw materials. He also led the development of Ikea, concept for supplier development and for Ikea, business plan process.

In addition, Magnus Carlsson has ten years of experience with pedagogy and education within the Swedish defence forces. He has designed and implemented a large number of sourcing programmes for category and purchasing managers both at Ikea and at other companies. For the past four years he has worked for companies in different industries, in particular as strategic sourcing specialist for Kingfisher plc, Europe’s second largest DIY retailer with 1,300 stores in ten commies. Kingfisher is known locally under the B&Q, Screwfix, Castorama, Brico Depot and Ko?ta? brands.

Target Audience:

Useful for CEOs, purchasing executives, purchasing managers, purchasers, and students. The book’s target readers are those who:

• have an interest in how Ikea and other cost-leading companies create advantages with the sourcing of direct and indirect products and services;

• want a practical guide on how purchasing teams can create value in category sourcing;

• are interested in how category sourcing–beyond the initial consolidation of the supplier base–can be implemented and managed.

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