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==Manufacturing, logistics, and labour== Although IKEA originated in Sweden, their household products and furniture products are manufactured in many different countries, in order to achieve cost efficiency. For most of its products, the final assembly is performed by the end-user (consumer). Swedwood, an IKEA subsidiary, produces all of the company's wood-based products, with the largest Swedwood factory located in Southern Poland. According to the subsidiary, over 16,000 employees across 50 sites in 10 countries manufacture the 100{{nbsp}}million pieces of furniture that IKEA sells annually. IKEA furniture uses the hardwood alternative [[particle board]]. [[Hultsfred]], a factory in southern Sweden, is the company's sole supplier. Distribution centre efficiency and flexibility have been one of IKEA's ongoing priorities and thus it has implemented automated, robotic warehouse systems and [[warehouse management system]]s (WMS). Such systems facilitate a merger of the traditional retail and mail order sales channels into an [[Omnichannel order fulfillment|omni-channel fulfillment model]].<ref>{{cite web |title= State-of-the-art distribution center for IKEA |url= https://www.ssi-schaefer.com/en-at/company/news/state-of-the-art-distribution-center-for-ikea-462802 |website= ssi-schaefer.com |date= 15 June 2018 |access-date= 14 February 2021 |archive-date= 16 April 2021 |archive-url= https://web.archive.org/web/20210416112400/https://www.ssi-schaefer.com/en-at/company/news/state-of-the-art-distribution-center-for-ikea-462802 |url-status= dead }}</ref> In 2020, Ikea was noted by ''Supply Chain'' magazine as having one of the most automated warehouse systems in the world.<ref>{{cite web |title= The Top 10 Automated Warehouses |url= https://www.supplychaindigital.com/warehousing/top-10-automated-warehouses |website= Supplychaindigital.com |last= Pierce |first= Freddie |date= 7 March 2020 |access-date= 14 February 2021 |archive-date= 25 January 2021 |archive-url= https://web.archive.org/web/20210125181126/https://www.supplychaindigital.com/warehousing/top-10-automated-warehouses |url-status= live }}</ref> In the 1980s under the rule of the Romanian dictator [[Nicolae Ceaușescu]], Romania's secret police, the [[Securitate]], received six-figure payments from IKEA.<ref>{{Cite news |last=Rosca |first=Matei |date=2014-07-04 |title=Ikea funds went to Romanian secret police in communist era|work=The Guardian |url=https://www.theguardian.com/world/2014/jul/04/ikea-funds-romania-secret-police-communist-era |access-date=2023-02-14 |issn=0261-3077 |archive-date=20 October 2017 |archive-url=https://web.archive.org/web/20171020060152/https://www.theguardian.com/world/2014/jul/04/ikea-funds-romania-secret-police-communist-era |url-status=live }}</ref><ref>{{Cite web |date=2014-07-07 |title=Ikea paid millions to Romania's communist secret police in 1980s |url=https://www.scmp.com/news/world/article/1548113/ikea-paid-millions-romanias-communist-secret-police-1980s |access-date=2023-02-14 |website=South China Morning Post|archive-date=14 February 2023 |archive-url=https://web.archive.org/web/20230214053346/https://www.scmp.com/news/world/article/1548113/ikea-paid-millions-romanias-communist-secret-police-1980s |url-status=live }}</ref> According to declassified files at the National College for Studying the Securitate Archives, IKEA agreed to overcharge for products made in [[Romania]] and some of the overpayment funds were deposited into an account controlled by the Securitate.<ref>{{Cite web |title=Programmable Search Engine |url=https://cse.google.com/cse?cx=011669139259916526426:ikoewsmuaba&ie=windows-1250&q=ikea&sa=C%C4%83utare&siteurl=www.cnsas.ro/&ref=&ss=303j38345j4#gsc.tab=0&gsc.q=ikea&gsc.page=1 |access-date=2023-02-14 |archive-date=14 February 2023 |archive-url=https://web.archive.org/web/20230214053338/https://cse.google.com/cse?cx=011669139259916526426:ikoewsmuaba&ie=windows-1250&q=ikea&sa=C%C4%83utare&siteurl=www.cnsas.ro/&ref=&ss=303j38345j4#gsc.tab=0&gsc.q=ikea&gsc.page=1 |url-status=live }}</ref> === 2021 supply chain problems === Due to the COVID-19 pandemic, IKEA has been facing major supply chain issues since 2021, which could extend into 2022. Jon Abrahamsson, the chief executive of Inter IKEA has stated that the main issue is shipping products from China, as a "quarter" of IKEA products are made there.<ref>{{cite web|url=https://globalnews.ca/news/8265916/ikea-supply-chain-shortages-2022/|title=IKEA expects supply chain disruptions into 2022 as it fights 'perfect storm'|date=14 October 2021|access-date=6 February 2022|last=Ringstrom|first=Anna|archive-date=6 February 2022|archive-url=https://web.archive.org/web/20220206164829/https://globalnews.ca/news/8265916/ikea-supply-chain-shortages-2022/|url-status=live}}</ref> A variety of reasons led to supply shortages, including consumption shocks. In addition, factories were unable to produce raw materials and workers even after they began receiving orders.<ref>{{Cite journal |last1=Panwar |first1=Rajat |last2=Pinkse |first2=Jonatan |last3=De Marchi |first3=Valentina |date=February 2022 |title=The Future of Global Supply Chains in a Post-COVID-19 World |journal=California Management Review|volume=64 |issue=2 |pages=5–23 |doi=10.1177/00081256211073355 |s2cid=246777087 |issn=0008-1256 |doi-access=free |hdl=11577/3419577 |hdl-access=free }}</ref><ref name="BBC News">{{Cite news |date=15 October 2021 |title=Ikea warns stock shortages to last into next year |url=https://www.bbc.com/news/business-58912045 |url-status=live |archive-url=https://web.archive.org/web/20220614072121/https://www.bbc.com/news/business-58912045 |archive-date=14 June 2022 |access-date=14 June 2022 |work=BBC News}}</ref> ===Labour practices=== During the 1980s, IKEA kept its costs down by using production facilities in [[East Germany]]. A portion of the workforce at those factories consisted of [[political prisoner]]s. This fact, revealed in a report by [[Ernst & Young]] commissioned by the company, resulted from the intermingling of criminals and political dissidents in the state-owned production facilities IKEA contracted with, a practice which was generally known in West Germany. IKEA was one of a number of companies, including West German firms, which benefited from this practice. The investigation resulted from attempts by former political prisoners to obtain compensation. In November 2012, IKEA admitted being aware at the time of the possibility of use of [[unfree labour|forced labour]] and failing to exercise sufficient control to identify and avoid it. A summary of the Ernst & Young report was released on 16 November 2012.<ref name=NYT111612>{{cite news|title=Ikea Admits Forced Labor Was Used in 1980s|url=https://www.nytimes.com/2012/11/17/business/global/ikea-to-report-on-allegations-of-using-forced-labor-during-cold-war.html |archive-url=https://ghostarchive.org/archive/20220103/https://www.nytimes.com/2012/11/17/business/global/ikea-to-report-on-allegations-of-using-forced-labor-during-cold-war.html |archive-date=3 January 2022 |url-access=subscription |url-status=live|access-date=17 November 2012|newspaper=The New York Times|date=16 November 2012|author=Nicholas Kulish|author2=Julia Werdigier}}{{cbignore}}</ref> In 2018, Ikea was accused of [[union busting]] when employees sought to organize, using such tactics as [[captive audience meeting]]s.<ref>{{cite web |url=https://www.businessinsider.com/ikea-accused-of-anti-union-tactics-2018-10 |first=Áine |last=Cain |date=3 October 2018 |access-date=8 July 2022 |title=Unions are accusing IKEA of cracking down on Massachusetts workers in a series of 'captive-audience' meetings featuring fear-mongering PowerPoints |website=[[Business Insider]] |archive-date=8 July 2022 |archive-url=https://web.archive.org/web/20220708140505/https://www.businessinsider.com/ikea-accused-of-anti-union-tactics-2018-10 |url-status=live }}</ref><ref>{{cite news |url=https://www.reuters.com/article/us-ikea-unions-idUSKCN1M721G |first=Anna |last=Ringstrom |title=Unions accuse IKEA of undermining workers' rights in three markets |work=[[Reuters]] |access-date=8 July 2022 |date=27 September 2018 |archive-date=8 July 2022 |archive-url=https://web.archive.org/web/20220708140504/https://www.reuters.com/article/us-ikea-unions-idUSKCN1M721G |url-status=live }}</ref> IKEA was named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by ''Working Mothers'' magazine.<ref>{{cite web|date=21 September 2004|title=IKEA Named to Working Mother Magazine's '100 Best Companies for Working Mothers' for Second Consecutive Year|url=https://www.businesswire.com/news/home/20040921005210/en/IKEA-Named-Working-Mother-Magazines-100-Companies|access-date=11 June 2020|website=businesswire.com|archive-date=15 August 2020|archive-url=https://web.archive.org/web/20200815030512/https://www.businesswire.com/news/home/20040921005210/en/IKEA-Named-Working-Mother-Magazines-100-Companies|url-status=live}}</ref> It ranked 80 in [[Fortune (magazine)|Fortune's]] 200 Best Companies to Work For in 2006 and in October 2008, IKEA Canada LP was named one of "[[Canada's Top 100 Employers]]" by Mediacorp Canada Inc.<ref>{{cite web|url=http://www.eluta.ca/top-employer-ikea-canada|title=Reasons for Selection, 2009 Canada's Top 100 Employers Competition|access-date=14 January 2009|archive-date=22 January 2013|archive-url=https://web.archive.org/web/20130122010834/http://www.eluta.ca/top-employer-ikea-canada|url-status=live}}</ref>
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