Rhenus opens customer distribution centre for IKEA in north India

The German logistics service provider, Rhenus Group, has inaugurated a new Customer Distribution Centre (CDC) for IKEA in Farukhnagar, near Gurugram, India. Unlike other IKEA warehouses, this 180,000 square feet CDC is the first fully outsourced CDC for IKEA in the country.

IKEA’s Gurugram facility is expected to enhance storage and fulfilment capabilities for over 7,000 IKEA products, with a focus on seamless last-mile delivery to the Delhi National Capital Region (NCR) and, in the future, other northern markets. Founded in 1943 by Ingvar Kamprad, this Swedish company manufactures and delivers affordable, ready-to-assemble furniture, home accessories and kitchen appliances.

With a storage capacity of 129,166 square feet, the CDC is a key component of IKEA’s expansion plans in India. The facility integrates with the Rhenus Warehouse Management System (WMS), a logistics solution designed to streamline operations through Electronic Data Interchange (EDI) and address the complexities of last-mile logistics.

The warehouse is equipped with modern infrastructure, including advanced storage and material handling systems. The CDC facility also prioritises energy-efficient solutions, such as paper pallets, rainwater harvesting systems, LED lighting with motion sensors, transparent sheets for daylight use, and paperless picking systems with RDT scanners. Additional sustainable measures include the use of HVLS fans and a comprehensive waste management system.

While keeping sustainability in mind, the company has partnered with numerous companies to enable last-mile delivery only by electric vehicle. The Swedish company further plans to incorporate inter-modal rail transport to enable sustainable city-to-city transport.

The CDC is strategically situated about 35 kilometres from the airport and is well-connected to major rail, road and air transportation channels. The warehouse is expected to employ around 150 people, with a focus on inclusivity. Facilities for employees include healthcare support, emergency infrastructure, a cafeteria, and a training hall. The company also plans to integrate specially-abled personnel into its workforce.

During the inauguration, Saiba Suri, Country Customer Fulfilment Manager at IKEA India, highlighted the importance of the CDC for IKEA’s expansion in North India. “We at IKEA are thrilled to begin our North India journey finally. The IKEA Customer Distribution Centre (CDC) will enable us to serve many more people with our beautiful home furnishings products and solutions. This is a movement towards a future where speed, sustainability, and accessibility will define the IKEA experience in North India. Every order is fulfilled with care for both people and the planet. With close to 100% EV deliveries, we are setting a new industry benchmark in the category as a responsible retailer. We look forward to a great partnership with Rhenus in this journey.”

Ronny Sassen, CEO of Rhenus Contract Logistics, emphasised the long-standing partnership between Rhenus and IKEA. “As we embark on the next chapter of our expansion with IKEA, our first venture for IKEA outside Europe, we reaffirm the strength of our four-decade-long partnership. The establishment of IKEA’s first fully outsourced CDC marks a significant operational milestone. More than just efficiency, this initiative reflects our shared vision for innovation, sustainability, and especially long-term collaboration. By leveraging Rhenus’ expertise in warehousing and fulfilment, we are committed to meeting the evolving demands of IKEA’s customers while embedding sustainable practices into our daily operations.”

Vivek Arya, CEO of Rhenus Logistics India & Global CEO of Rhenus Warehousing Solutions Intercontinental, also underscored the importance of this development. “The completion of this new warehousing project in India showcases our commitment to providing comprehensive logistics solutions and marks a significant milestone in our journey with IKEA in India and beyond. As IKEA grows on its strategic expansion in India, we look forward to continuing to be their valued partner in the long run, driven by zeal, zest, and a shared vision for excellence.”

Since 1988, Rhenus and IKEA have collaborated to develop an extensive European logistics network, which by 2018 facilitated over 1.8 million deliveries across 50 sites. Looking ahead, Rhenus and IKEA plan to scale up the operations of the CDC as market demand grows.

The new CDC marks a significant step in IKEA’s logistics strategy in India, enabling to reach more consumers, especially in the northern part of the country.