A woman with red hair, wearing a blue t-shirt, is standing inside a factory holding a wooden plank.

Good supplier collaborations – a way to develop our range

Making products that offer great value at the lowest possible cost frequently involves inventing new ways of doing things. At critical moments our suppliers have often come to our rescue, with surprising and innovative solutions. In fact, it’s not going too far to say that we wouldn’t still be around if it weren’t for them.

Two women are smiling as they weave a bamboo lamp together. They are weaving it by hand.
IKEA co-operates with about 1600 suppliers for production, transport and other services. About 1000 of those are home furnishing suppliers.

You’ll find IKEA suppliers in all parts of the world. Some of them are high-tech companies while others are social entrepreneurs working with artisans in disadvantaged areas. Most are somewhere in between. We co-operate with about 1600 suppliers for production, transport and other services. About 1000 of these are home furnishing suppliers. The absolute majority are situated in Europe and Asia. We also have our own production unit – IKEA Industry AB, which manufactures sustainable wood-based furniture, and IKEA Components AB, which develops and supplies the company with customer friendly component solutions for better products. They also provide industrial know-how, and the ability to innovate and challenge established set-ups in the raw material and component market, making sure we always deliver the best products.

A donut chart showing where IKEA suppliers are located: China (27%), Poland (19%), Italy (8%), Lithuania (5%), Germany (4%), Sweden (4%), and various other nations (33%).
Global distribution of IKEA suppliers.

Growing together side by side

Our suppliers make up a vital part of our business. Together we make sure that our products are made in a sustainable way, at the right time, in the right volume, with the right quality and at a low cost. Often our suppliers contribute with their knowledge and creativity to help us evaluate which materials, assembly solutions and innovative production techniques can be combined to make the best possible products. Product development sometimes come in the form of co-creation directly at the factory.

Needless to say, this sort of collaboration takes years to build up and the average supplier cooperation is about eleven years. Not only do we have matching business models, but more importantly we share the same mindset and values. After all, we would never be able to succeed with our ambition to have a positive impact on people and the planet if we didn’t have our partners on our side. We will continue innovating for sustainable consumption – together.