IKEA Prepares for Delhi-NCR Launch with Enhanced Supply Chains and Eco-Friendly Practices

Swedish furniture giant IKEA is gearing up for its highly anticipated launch in the Delhi-NCR market, bolstered by strengthened supply chains and improved demand forecasting techniques. With nearly 40 years of sourcing from India, IKEA collaborates with around 65 suppliers and employs 48,000 people directly. Currently, IKEA operates three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with a city store in Mumbai. The company’s various entities, including IKEA Purchasing and the IKEA Foundation, are also making significant investments in India.

After entering the Indian market in 2018 with its Hyderabad store, IKEA is now poised to launch in the Delhi-NCR market early next year.

Recently, IKEA expanded its delivery reach to 62 districts across Maharashtra, Karnataka, Telangana, and Andhra Pradesh. This move aims to boost brand awareness and provide more customers with a tangible IKEA experience.

To ensure seamless execution, IKEA partners with long-term service providers for last-mile delivery and warehousing. This strategy will also be applied to the Delhi-NCR launch, including surrounding satellite cities, to maximize reach.

Central to IKEA’s operations is its commitment to sustainability, with a goal to use only renewable or recycled materials by 2030. The company is leveraging digital tools to forecast demand and map trends, enhancing its ability to cater to customer preferences more efficiently.

The brand emphasizes accurate forecasting to understand customer needs and supply chain requirements. Given India’s lengthy lead times for imported products, the company ensures robust port facilities, stable warehousing, and sufficient capacity for last-mile delivery to maintain quality operations.

IKEA leverages digital technologies such as AI, robotics, and machine learning to enhance supply chain efficiency. Tools for demand sensing improve forecast accuracy, while digital enhancements to the website and app benefit customers. Technologies like route optimization and drones for inventory management streamline operations, ensuring cost-effectiveness and accuracy.

IKEA has a unique supply chain model for India. Its supply chain is structured around three geographic clusters: North, Central, and South. This scalable model supports expansion and maximizes existing store assets as fulfillment units. Long-term partnerships with service providers ensure compliance, quality, and sustainability.

Sustainability is integral to IKEA’s operations, aiming to use 100% renewable or recycled materials by 2030. Currently, 57% of materials come from renewable sources and 17% from recycled sources. IKEA also aims for zero-emission home deliveries by 2025, with India leading in this area—75% of deliveries are already done by electric vehicles.

As IKEA continues to expand and innovate, its focus on sustainability and technology-driven supply chain management positions it for long-term success in India. By adapting to market dynamics and prioritizing eco-friendly practices, IKEA is set to strengthen its presence and impact in the Indian market.

Leave a Reply

Your email address will not be published. Required fields are marked *

LATEST NEWS