Rhenus launches its new central distribution centre for IKEA in India

German logistics provider Rhenus Logistics has opened a new warehouse facility in Haryana, India in collaboration with IKEA, which is headquartered in the Netherlands. The centre will support the storage and fulfilment of over 7,000 IKEA products.

Located about 35km from the airport, IKEA's central distribution centre (CDC) is located at Farrururukh-Nagar in Gurugram and is well-connected to the area's railways, roads, and air. The centre employs approximately 150 employees and includes healthcare support, emergency-ready infrastructure, social areas and training rooms.

The 16722.54sqm facility is IKEA's first fully outsourced CDC, which includes sustainable features for easy doorstep delivery to the Delhi NCR area and, eventually, additional northern markets.

The new CDC, with a storage capacity of 12,000cbm, aims to assist the company in fulfilling most orders within a day as part of its strategic expansion efforts in India. The facility is integrated with the Rhenus Warehouse Management System (WMS), a logistics solution that streamlines last-mile logistics and facilitates efficient transactions through Electronic Data Interchange (EDI).

Ronny Sassen, CEO of Rhenus Contract Logistics, said, "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."

"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," Sassen added.

Saiba Suri, IKEA India's country customer fulfilment manager said, "We at IKEA are thrilled to begin our North India journey finally [...] This is a movement towards a future where speed, sustainability, and accessibility will define the IKEA experience in North India."

Suri also highlighted the sustainability of the centre's operations, saying that "with close to 100% EV deliveries, we are setting a new industry benchmark in the category as a responsible retailer."

Rhenus and IKEA have collaborated since 1988 to build a vast European network that includes more than 50 locations and, as of 2018, more than 1.8m deliveries. As the market expands over the next several years, Rhenus and IKEA intend to expand their collaboration.

"Rhenus launches its new central distribution centre for IKEA in India" was originally created and published by Investment Monitor, a GlobalData owned brand.