IKEA Outbound Logistics

IKEA inbound logistics involve warehousing and distribution of ready products

from 422 stores in 50 markets to end-users. The world’s largest furniture retailer
operates 28 distribution centres and 11 customer distribution centres in 16
countries worldwide. Customers are responsible for costs associated with the
transportation of goods purchased from IKEA stores. The company offers two
types of delivery services. Parcel delivery is a service to deliver small items
weighting up to 25kg and the company charges around USD 12 depending on the
location of the specific store.
Truck delivery, on the other hand, is made for purchases exceeding 25kg and
IKEA charges starting from approximately USD 50 for truck delivery. The
delivery for goods purchased online is done free of charge.  Delivery of goods to
customers directly without any intermediaries can be specified as one of the main
sources of value in IKEA outbound logistics. Moreover, sources of value creation
in outbound logistics for the furniture retailer include using flat packs to save on
space, transporting goods by rail and sea instead of vehicles whenever possible
and applying fuel-saving techniques in transportation.