Ikea has announced its plan to spend €90 million by 2025 to implement its logistics transformation. This initiative will include a number of actions, such as opening new logistics centres, strengthening logistics capacity, using shops as regional logistics centres and re-evaluating supplier agreements.
Kristien Nuyts, Ikea's director of fulfilment and member of the management committee in Spain, made this announcement, highlighting the continued strong growth of the business in both the online and offline channels, and the opening of new points of contact. In this sense, he stated that the company's logistical strength must adapt to this growth, which implies the implementation of important plans to improve Ikea's presence and operations in Spain.
New Ikea logistics centres, strengthening of its capacity and agreements with suppliers
Specifically, the company has highlighted four priority areas that include the opening of additional logistics centres. These include those previously announced in Illescas (Toledo) and Antequera (Málaga), where 60 million euros will be invested, as well as another in San Sebastián de los Reyes (Madrid), with an investment of 20 million euros.
Priority will also be given to strengthening the logistics capacity of the company's own shops, as has been done in 13 of its large shops through "fulfilment" projects. In addition, it has been decided to convert some shops into regional logistics centres, as has been successfully achieved in Jerez, which supplies the whole of Andalusia; Zaragoza, which also covers Navarre and La Rioja; Valencia, in charge of Murcia; and Valladolid, which serves the northern market. The investment in the latter case amounts to 10 million euros.
Finally, its plans include the review and redefinition of agreements with suppliers. An example of this is the recent alliance established with DHL for the management of the logistics centre in Illescas, which has been operational since March. DHL will be specifically in charge of the online operation of smaller volume orders (parcels) throughout the national territory.
Objectives of Ikea's logistics transformation
The main objectives are to improve delivery times, increase speed and reduce costs, while getting closer to the consumer and becoming more accessible, as well as making a positive impact on people and the environment by reducing emissions.
Nuyts adds that his continued focus is on finding better ways of operating, which will reduce costs and delivery times. "According to our calculations, with this transformation we will be able to deliver to 80% of the population in Spain in a maximum of 48 hours. Our new, closer and more accessible points of contact are also key, which is why we are investing in them. We have grown to around 80 points where we now deliver bulky orders and more than 2,000 for the delivery of parcel orders and we will continue to do so. We have big plans for Spain.
Furthermore, in line with its ambitious expansion plan, Ikea plans to open 40 new points of contact this year. This will include the opening of twelve outlets in various formats and 32 delivery points for orders. This expansion roadmap will continue to grow in the next financial year, with the expectation of doubling these numbers by opening eleven new outlets and 26 additional delivery points.
Ikea currently has up to five different contact point formats and more than a hundred locations in total. In addition, it has an extensive network of more than 2,300 collection points, both its own and those operated by third parties.
