IKEA, the world’s largest home furnishings retailer, has made a strategic decision to establish a Regional Distribution and Supply Chain Centre for ASEAN in Malaysia. The centre, to adopt the structure and technology of IKEA’s biggest Regional Distribution Centre in Germany, will be among the 10 largest Regional Distribution Centres of IKEA Group globally.
The home furnishings retailer headquartered in the Netherlands will invest RM908 million for the new centre that will manage an inventory of 9,500 stock keeping units (SKUs) worth RM6.6 billion annually. IKEA’s new 100,000 sq. mt. specialised warehouse will utilise its integrated ICT systems and automation to reduce the dependency on labour and significantly increase the efficiency and accuracy of its inventory management processes.
YB Dato’ Sri Mustapa Mohamed, minister of international trade and industry (MITI) stated that the project, which resulted from continuous engagements and facilitation by the Malaysian Investment Development Authority (MIDA), represents a significant milestone for both IKEA and Malaysia.
