Rhenus opens Central Distribution Centre for IKEA in India

Global logistics provider Rhenus opened a state-of-the-art warehouse facility that supports storage and fulfillment of over 7,000 IKEA products. The 180,000 sq ft facility is the first fully outsourced Central Distribution Centre (CDC) for IKEA, with sustainable features and leading technology for seamless doorstep delivery to the Delhi NCR region, and in future, more markets in the north.

The CDC for IKEA, with a storage capacity of 12,000 cu m, will enable the Swedish home furnisher to fulfil most orders within 24 hours, as part of its strategic expansion plans in India. The facility is seamlessly integrated with Rhenus Warehouse Management System (WMS), a best-in-class warehouse logistics solution that allows for efficient transactions throughout Electronic Data Interchange (EDI) and solving the complexity of last-mile logistics.

As one of the largest and most modern warehouse facilities in the country, the CDC is equipped with state-of-the-art infrastructure, cutting-edge storage and modern material handling systems. This sustainable and eco – friendly facility will facilitate enhanced efficiency and productivity, with an objective to cater to the north India market seamlessly.

Situated approximately 35 kilometres from the airport, the CDC for IKEA is located in Farrukh-Nagar, Gurugram, and well connected to the region’s rail, road, and air channels. The CDC, which will hire close to 150 employees, provides inclusive facilities for their well-being, including healthcare support, emergency-ready infrastructure, a cafeteria and a training hall. It will explore opportunities to deploy especially abled personnel to support their aspirations to contribute and grow within the system.

Within the logistics sector, warehouse activities are responsible for producing approximately 11% of total greenhouse gases emitted. Sustainable features are prioritized in the CDC, from paper pallets, rainwater harvesting systems, LED lights with motion sensors, transparent sheets for daylights in the warehouse, paperless picking systems leveraging RDT scanners, HVLS fans, to a robust waste management system. Renewable energy initiatives such as using the intra-modal rail transport and 100% electric vehicle (EV) delivery, are also implemented.

“We at IKEA are thrilled to finally begin our North India journey. The IKEA Customer Distribution Center (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,” said Saiba Suri, Country Customer Fulfilment Manager, IKEA India.

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 Central Distribution Centre (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 fulfillment, we are committed to meet the evolving demands of IKEA’s customers while embedding sustainable practices into our daily operations. Together, we continue to drive excellence, shaping a more resilient and responsible supply chain for the future.”

Vivek Arya, CEO of Rhenus Logistics India & Global CEO of Rhenus Warehousing Solutions Intercontinental said, “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 being their valued partner in the long run, driven by zeal, zest, and a shared vision for excellence.”

Since 1988, Rhenus and IKEA have worked together to develop an extensive European network spanning over 50 sites and by 2018, over 1.8 million deliveries.

Future plans for the partnership between Rhenus and IKEA include ramping up the facility as the market grows in the coming years.