ID Logistics secures the sustainable future of the employee-intensive e-commerce site in Dortmund

• Making e-commerce faster, more efficient and more sustainable for IKEA Germany
• Double-digit investment in highly automated system
• Retail undergoing change worldwide
• successful "open-heart surgery"

Dortmund, 28 February 2023

IKEA and ID Logistics have deepened and expanded their strategic partnership at the Dortmund site, which has existed since 2015, in order to accelerate e-commerce for IKEA and supply end consumers even faster and in a more environmentally friendly way.

"With an investment in the double-digit million range, ID Logistics is supporting its customer IKEA in the long term with a highly automated state-of-the-art logistics facility in the German B2C e-commerce market with the aim of sustainably driving the growth of its parcel business," explained Robin Otto, CEO of ID Logistics Germany (Griesheim).

Kai Fuhlrott, Country Customer Fulfilment Manager IKEA Germany, said: "The retail sector is changing worldwide. Part of this change is the permanently growing importance of online retail. The changing needs of our customers are at the centre of our attention. With the commissioning of the new automation system at ID Logistics Dortmund's fulfilment site for IKEA Germany, we are delighted to be taking a further step towards providing our customers with an outstanding shopping experience at all times. Whether they want to interact with IKEA online or in our stores." Kai Fuhlrott continues: "We are delighted to further intensify our successful collaboration with our partner ID Logistics through this project."

The renewal of the e-commerce site by ID Logistics and the optimisation of processes represent a quantum leap. The performance boost provided by ID Logistics for IKEA's B2C e-commerce includes an almost doubling of orders processed for IKEA products weighing up to 31.5 kg from around 60,000 to around 100,000 parcels per week. At the same time as reducing the ecological footprint, securing and expanding jobs in the long term from 320 to a maximum of 600 and expanding to a total of four halls with 44,000 m².

"Over the past two years, a team of around 30 people, consisting of IKEA and ID Logistics managers and cooperation partners, has implemented and commissioned a new, highly automated logistics facility in five phases during ongoing operations," reported Gregor Eich, Director Project Management & Reengineering at ID Logistics Germany (Griesheim).

In February 2023, the country management of IKEA Germany and ID Logistics Germany as well as the site management, employees, the works council and cooperation partners such as SSI Schaefer celebrated the successful "open-heart surgery" at the Dortmund e-commerce site.

The strategic partnership with IKEA has given ID Logistics the option of securing existing jobs at its Dortmund site in the long term and expanding them further. ID Logistics is currently planning to recruit around 50 new employees, both in the commercial and technical areas (technicians and mechatronics engineers).

Making e-commerce faster, more efficient and more sustainable

On the technical side, the most important innovations include a 3-kilometre-long, highly automated picking system including space-saving, ergonomic and safety-oriented warehouse lifts for employees. In addition, the entire lighting system in the 13.4 metre high, partially shelved halls has been converted to LED technology with motion detectors. As a result, the site is saving 94.28% electricity in the area of lighting alone (electricity consumption reduced from 1364 megawatt hours per year to 78 megawatt hours per year).

As part of its operational excellence strategy, ID Logistics has also significantly reduced plastic waste and, instead of wrapping parcels in 9,000 kilometres of plastic tape per year, has been using wet-adhesive paper since 2023, which can be reintroduced into the recycling cycle. The new packaging range also enables a higher output: All cartons are folded to a minimum in a CO2-optimised way to minimise the number of trucks on the road.

"We are delighted to have ID Logistics at our side as a reliable partner with whom we have enjoyed a successful business relationship for many years. Thanks to the latest generation of system technology used at the site, our customers' online orders can be processed even faster, more efficiently and more sustainably in future. This will help us to further expand our e-commerce business and at the same time contribute to IKEA Germany's ambitious sustainability goals," says Kai Fuhlrott.

As part of its international CSR strategy, ID Logistics will give people with disabilities the opportunity to participate in the primary labour market from 2023 - as has already been successfully practised for years in Dortmund and at its second IKEA location managed by ID Logistics in Salzgitter. To this end, ID Logistics is currently in discussions with non-profit organisations.

As part of its HR strategy, ID Logistics will also set up a canteen for employees at the Dortmund site later this year, where they will be able to enjoy hot meals. Outdoor recreational facilities for employees will also be expanded. Fresh fruit and access to drinking water at all times will continue to be free of charge.

ID Logistics will also promote biodiversity at the Dortmund site as part of its international CSR strategy. As successfully introduced at its Kaiserslautern site in 2022, ID Logistics plans to establish up to 5 bee colonies here in the long term. To this end, the contract logistics company has already identified an 825 m² outdoor area at the Dortmund site, where a mixture of flowers will be sown by a gardener in the spring. Beekeepers who would like to move their bee colonies to the Westfalenhütte can apply to ID Logistics to manage the area.

ABOUT THE INGKA GROUP:

The Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 11 different groups that owns IKEA sales channels under the franchise agreement with Inter IKEA Systems B.V.. The Ingka Group consists of three business units: IKEA Retail, Ingka Investments and Ingka Centres. It is the world's largest home furnishings retailer and operates 371 stores in 31 countries. In the 2022 financial year, a total of 680 million people visited IKEA stores and 3.8 billion people visited our website www.IKEA.com. The Ingka Group operates shops with the vision of creating a better everyday life for the many people by offering beautiful, functional and high-quality home furnishings at prices that are affordable so that as many people as possible can afford them.

ABOUT IKEA GERMANY:

IKEA has been represented in Germany since 1974, and we currently operate IKEA stores in 54 locations as well as three IKEA Planning Studios. We employ around 19,270 people in Germany and work together to realise the IKEA vision: "Creating a better everyday life for the many people."

ABOUT ID LOGISTICS:

ID Logistics Group, managed by Eric Hémar, is an international contract logistics service provider with a global turnover of 2.5 billion euros in the 2022 financial year. ID Logistics operates 365 locations with over eight million in Europe, North and South America, Asia and Africa and employs around 30,000 people.

Customers from retail, industry, healthcare and the e-commerce sector rely on ID Logistics' technology-supported solutions. Since its foundation in 2001, the Group has developed a social and environmental approach through a series of pioneering projects and is firmly committed to an ambitious CSR policy. ID Logistics is listed on the regulated market of Euronext Paris (Compartment A) (ISIN code: FR0010929125, ticker: IDL).

IMAGE MATERIAL:

Caption 1: From left to right: Kai Fuhlrott (Country Customer Fulfilment Manager IKEA) and Robin Otto (CEO ID Logistics Germany) showed on stage in front of around 150 employees from IKEA Germany and ID Logistics Germany as well as cooperation partners such as SSI Schäfer how the two-year "open-heart surgery" at the Dortmund e-commerce logistics centre was successful. Image rights: ID Logistics

Caption 2: Part of the 30-strong project team cut the red ribbon at the symbolic opening of the ID Logistics e-commerce centre in Dortmund (from left to right).): Patrick Desar (Site General Manager ID Logistics Dortmund), Ali Cürük (IDL Dortmund employee), Oktarian Schaital (IDL Dortmund employee), Kai Fuhlrott (Country Customer Fulfilment Manager IKEA), Marcus Gossmann (Market Area Manager and Project Manager IKEA), Lars Nemitz (Senior Project Manager ID Logistics Germany), Dietmar Röck (Senior Project Manager, SSI Schäfer) and Robin Otto (CEO ID Logistics Germany). Image rights: ID Logistics

Caption 3: With a highly automated state-of-the-art logistics facility, ID Logistics is supporting its customer IKEA in the long term to sustainably drive the growth of its parcel business. Image rights: ID Logistics

Press contact:
Silke Westermann
Press
Tel: +49 (0)211 53 883-440
s.westermann@shcommunication.de

Company contact
ID Logistics Germany
Am Leuschnerpark 1
64347 Griesheim
www.id-logistics.com