Our view on transport and logistics

Driving efficiency through network optimisation

When we improve how good flows are organised, we create a more efficient IKEA supply chain. Reducing kilometres transported through better planning helps avoid unnecessary costs.

• This includes selecting the best locations for our Consolidation Points (CPs) - outsourced warehouses, run by service providers. They are typically located near suppliers or receivers, enabling us to combine small shipments into full loads. This reduces freight costs, increases delivery frequency, and helps secure a stable flow of goods.
• We continuously adjust our network to respond to changing market realities and to ensure optimised setups. For example, last year we opened three new CPs in Europe - two in Poland (in Jarosty and near Gdańsk) and another in Germany near Duisburg. The third site also creates the preconditions for future barge intermodal flows. Additionally, we opened two new CPs in Asia: one in Shanghai, China and another in Chattogram, Bangladesh.

Avoiding waste in transport

Transporting air instead of goods is waste. By cutting empty mileages and transporting more with each load, we maximize loads, bringing both cost savings and operational efficiencies.

• For example, in Thailand, we consolidated shipments that previously moved in separate, partially loaded flows (to stores and for export). By combining goods from multiple factories and consolidating them at our CP, we now send full loads onward to their destinations. This approach helps us to shorten lead times from over 30 days to around just 15, and lower costs at the same time.
• Securing return flows also helps avoid empty trips. In France, EV trucks delivering IKEA products from our Distribution Centre (DC) to the Customer Distribution Centre in Saint- Quentin Fallavier previously returned empty. Today, these return journeys are used to transport customer orders to our Local Service Centre in Salon-de-Provence, which manages last-mile deliveries to customers.
• Looking beyond road transport, when establishing a rail connection for deliveries from our supplier in Lithuania to the IKEA DC in Dortmund, we also secured the return flow from Germany back to stores in the Baltics. This helped improve equipment utilisation and lower shipments costs.
• In Food logistics, "waste" also means food destruction. In Taiwan, we collaborated closely with different stakeholders in the IKEA food supply chain to keep appropriate safety stock levels in our warehouses and avoid throwing away food products because of overstock or shelf-expiration. At the same time, we maintain product availability at the warehouse to meet the needs of IKEA stores.

Small steps that matter

Small improvements can make a big difference when repeated across a global supply chain: paying attention to details, reviewing the current setups to look for optimisation and improved results.

Some examples from our supply chain:

• At our DC in Port Klang, last year we focused on increasing efficiency of our shunting services within the DC area. By carefully planning loading and unloading slots for terminal tractors based on the operation needs, we were able to reduce the number of trips. As a result, fuel consumption used for shunting services in the DC decreased by almost 40%.
• Using bigger equipment can also improve efficiency and lower costs. IKEA products transported from Valls to Bilbao in Spain now move either by rail or by truck with dual trailers, which can carry significantly more than a standard truck. This results in fewer trucks being needed to transport the same volume of goods.

Keeping products moving with intermodal transport

To keep products moving and available for our customers, we use intermodal transport solutions such as rail, barge and short sea for longer journeys. Today, 50% of our tonne kilometres globally are transported through intermodal solutions, with the majority on rail.

By combining different modes of transport, we shorten road portions of the journeys, helping reduce driving time and supports better planning of drivers' work. At the same time, fewer trucks are needed for long-distance routes, reducing our dependence on factors such as driver availability and fluctuations in fuel markets.

As a result, we can create more predictable and flexible transport flows, helping to secure transport capacity and more stable cost structure over time. Together, these factors contribute to the availability and affordability of IKEA products.

Our approach: intermodal for longer journeys, electric solutions for shorter routes

Intermodal and electric transport solutions play complementary roles in our network, supporting our work to reduce greenhouse gas emissions from transport operations. While rail, barge and short sea solutions are used for the longest part of a journey, the shorter road legs at the beginning and end create favourable conditions for introducing EV trucks. These are typically best suited to shorter, high-volume and more predictable routes.

• Poland is the second-largest manufacturing hub for IKEA furniture, making it one of the biggest sending countries in the IKEA transport network. In recent years, we have shifted long-distance Polish export routes from diesel trucks to rail, and last year introduced new electric rail routes to southwest Germany and Austria. We also established additional rail connections in other parts of Europe: from Metz to Paris in France and from Belgian ports to Athus near Metz.
• China is full speed ahead with EV deployment: last year we added 55 new EVs and HFCVs (hydrogen fuel cell vehicles) to the IKEA transport network, bringing the total number to 175 units (130 EVs +45 HFCVs). As a result, 16% of IKEA heavy-duty road transport in China is now electrified.
• In addition to our established intermodal rail connections to Polish ports for ocean export, since last year 100% of the remaining short road parts of this journey – from CP Jarosty and to rail terminals and from rail terminal to DC Jarosty – are now fully operated by EV trucks. This represents more than 13,000 shipments per year.
• Last year, we deployed many more EV trucks across European markets: in the Barcelona area (Spain), in Norway on the last leg of intermodal connection, and on the final delivery leg of the intermodal route to DC Doncaster (UK).
• We have developed a new intermodal solution for transporting rice in China – it is now transported by short-sea vessel to supply IKEA restaurants.

Creating an EV ecosystem with IKEA warehouses

Electrification requires more than deploying EV trucks. It requires building a complete ecosystem, including charging infrastructure, efficient operations and strong collaboration with partners.

• In the UAE all outbound transports from the IKEA Distribution Centre (DC) Dubai are now fully electrified, using EV trucks charged with electricity generated by the DC’s rooftop solar installation.
• With the growing share of EV trucks in the IKEA transport network, we increased charging capacity last year to meet demand. In China, our DCs in Fengxian, Songjiang, and Foshan are equipped with heavy duty charging stations. The first two also use rooftop solar panels to partially power charging, supporting electric transport infrastructure.
• In Europe, Portugal provides another example: through collaboration with our Service Provider (SP) and IKEA Industry, three EVs are now operating in the IKEA network, charged both at SP’s site and, with solar energy, at our IKEA Industry site.

Replacing fossil fuels across warehouse operations

In our warehousing operations, we are working to phase out fossil fuels. Wherever possible, electricity used in warehouse operations is generated on-site, our preferred approach. Where on-site generation is not yet feasible, electricity is procured through agreements supported by Internal renewable energy certificates. We are also developing alternatives to fossil fuels for heating, cooling and shunting services within warehouse areas.

Because our warehouse portfolio is constantly evolving, energy sourcing requires continuous monitoring and adaptation as new sites are added and existing facilities change.

Environmental and operational criteria in tenders

When selecting new Service Providers, environmental, social and operational criteria are embedded in our tender processes. There are mandatory requirements that must be fulfilled. And if a Service Provider offers additional solutions that help reduce greenhouse gas emissions, these may be considered favourably – provided that availability and affordability are ensured. In warehousing, this can mean securing heavy-duty charging infrastructure. In transportation it may involve offering an intermodal or EV solutions instead of diesel trucks. In ocean shipping, it means starting to develop and implement a system that integrates CO₂e performance as a selection criterion in ocean carrier nominations, alongside price, lead time, and other operational factors.

Rethink in action in recent years:

• In FY25, in China we deployed our first electric barge on inland waterways.
• In FY24, we deployed the first ever electric heavy-duty truck to run on the public road network in India.
• In FY23, on the Poland-Spain-Poland corridor – one of the longest rail distances in Europe - we launched an intermodal block train in collaboration with another transport buyer. A block train transports goods as one unit from the start destination to the end destination without intermediate stops.
• In ocean transport, we participate in industry initiatives focused on the development of alternative shipping solutions and emerging energy technologies that can support future capacity and operational efficiency. We are the first member of the Zero Emission Maritime Buyers’ Alliance (ZEMBA) – a group working to aggregate demand and support the development of maritime transport solutions that meet pre-defined emissions performance criteria. Today, the alliance has more than 45 members and announced at the end of 2025 that it is deploying two pioneering hydrogen-derived e-fuels in container shipping from 2027.

Read ZEMBA announces winners of the highly anticipated e-fuel tender