ID Logistics and IKEA Deepen Collaboration in Dortmund

To accelerate e-commerce for IKEA and deliver to end consumers faster and more sustainably, IKEA and ID Logistics have deepened and expanded their collaboration at the Dortmund site, which has been a strategic partnership since 2015.

(Griesheim/Dortmund) “With an investment in the double-digit millions, ID Logistics is supporting its customer IKEA in the long term to sustainably drive the growth of its parcel business through a highly automated state-of-the-art logistics facility in the German B2C e-commerce market,” explained Robin Otto, CEO of ID Logistics Germany (Griesheim).

Kai Fuhlrott, Country Customer Fulfilment Manager IKEA Germany, said: “Retail is undergoing a transformation worldwide. Part of this change is the permanently increased significance of online trading. The changing needs of our customers are at the center of our attention. We are pleased to take another step with the commissioning of the new automation facility of the ID Logistics Dortmund fulfillment site for IKEA Germany to provide our customers with an excellent shopping experience at all times, whether they want to engage with IKEA online or in our stores.” Kai Fuhlrott continued: “We are excited to further intensify our successful collaboration with our partner ID Logistics through this project.”

Process Optimization Represents a Quantum Leap

The renewal of the e-commerce site by ID Logistics and the optimization of processes represent a quantum leap. The performance boost from ID Logistics for IKEA’s B2C e-commerce includes nearly doubling the processed orders of IKEA products weighing up to 31.5 kg from about 60,000 to approximately 100,000 packages per week. And this is achieved while simultaneously reducing the ecological footprint, securing and sustainably expanding jobs from 320 to a maximum of 600, and expanding to a total of four halls with 44,000 m².

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

In February 2023, the management of IKEA Germany and ID Logistics Germany, along with site management, employees, the works council, and cooperation partners like SSI Schäfer, celebrated the successful “operation on an open heart” of the e-commerce site in Dortmund.

Through the strategic partnership with IKEA, ID Logistics has gained the option to sustainably secure existing jobs at its Dortmund site and expand further. Currently, ID Logistics is planning around 50 new hires, both in commercial and technical areas (technicians and mechatronics).

Three-Kilometer Long Picking Facility

On the technical side, a 3-kilometer long, highly automated picking facility, including space-saving, ergonomic, and safety-oriented storage lifts for employees, is among the most important innovations. Additionally, the complete lighting system of the 13.4-meter high, partially racked halls has been converted to LED technology with motion detectors. This alone saves the site 94.28% in electricity costs (electricity consumption reduced from 1,364 megawatt-hours per year to 78 megawatt-hours per year).

Furthermore, as part of its Operational Excellence strategy, ID Logistics has significantly reduced plastic waste and has been using wet-glue paper instead of wrapping packages with 9,000 kilometers of plastic tape per year since 2023, which can be reintegrated into the recycling cycle. The new packaging spectrum also allows for higher output: all cartons are CO2-optimized to a minimum fold to minimize the number of trucks on the road.

“We are pleased to have ID Logistics as a reliable partner by our side, with whom we share a long-standing, successful business relationship. Thanks to the state-of-the-art technology deployed at the site, our customers’ online orders can be processed even faster, more efficiently, and sustainably in the future. This helps us further expand our e-commerce business and contributes to the ambitious sustainability goals of IKEA Germany,” said Kai Fuhlrott.

Part of the International CSR Strategy

As part of its international CSR strategy, ID Logistics will – as successfully practiced for years in Dortmund and at its second IKEA site managed by ID Logistics in Salzgitter – provide opportunities for people with disabilities to participate in the primary labor market starting in 2023. ID Logistics is currently in discussions with non-profit organizations for this purpose.

As part of its HR strategy, ID Logistics will also establish a cafeteria for employees at the Dortmund site later this year, where they can access warm meals. Additionally, outdoor break areas for employees will be expanded. Fresh fruit and access to drinking water will continue to be provided free of charge.

Promotion of Biodiversity

Furthermore, as part of its international CSR strategy, ID Logistics will promote biodiversity at the Dortmund site. ID Logistics plans to establish up to 5 bee colonies in the long term, as successfully introduced at its site in Kaiserslautern in 2022. For this purpose, the contract logistics provider has already identified an outdoor area of 825 m² at the Dortmund site, where a flower mixture will be sown in the spring by a gardener. Beekeepers who wish to bring their bee colonies to Westfalenhütte can apply to ID Logistics for management.

Photo: © ID Logistics / Caption from left to right: Patrick Desar (Site General Manager ID Logistics Dortmund), Ali Cürük (Employee IDL Dortmund), Oktarian Schaital (Employee IDL Dortmund), 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)