Strategic Sourcing and Category Management - 2nd Edition by Magnus Carlsson

About the Book

Drive efficient sourcing within your organization through applying the highly successful concepts and methods used in IKEA.

Book Synopsis

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 there, 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 approximately 7 billion. But 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.

Review Quotes

"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

"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

"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

"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

About the Author

Magnus Carlsson has 25 years' experience as a strategic sourcing expert at IKEA. He also has 10 years' experience with leadership and training within the Swedish defence forces and is an advisor in strategic sourcing for Kingfisher.