Ingka Group, the principal franchisee of the IKEA brand, has announced an €11m ($12m) investment in IKEA South Korea to integrate automated fulfilment systems.
The investment forms part of a broader €300m commitment announced by Ingka Group to the Korean market over the next three years.
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IKEA South Korea deployed the automation solutions in the IKEA Giheung store to address the increasing delivery demands propelled by the e-commerce growth.
By transforming existing stores into primary fulfilment centres, the brand aims to deliver a superior omnichannel shopping experience with swifter and more precise delivery services.
The automated warehouse system at IKEA Giheung employs wireless-controlled robots that strategically store products.
When an order is placed, these robots select the items and convey them to collection points for staff.
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By GlobalDataThis system reduces the physical strain on employees, allowing them to concentrate on quality control and other tasks.
The products are then directed to an automated packaging system, which utilises a 3D scanner to create perfectly sized boxes, automating the cutting, taping, weighing, and labelling processes.
With these technological advancements, IKEA Korea intends to significantly boost the shopping experience by enhancing operational efficiency and providing better ergonomic support for its workforce.
The new system is capable of handling approximately 2,000 orders daily, increasing picking efficiency eightfold and packing 300 boxes per hour.
The solutions also align with IKEA’s sustainability goals by optimising energy usage and leveraging existing store infrastructure. Remarkably, just ten robots consume the same amount of power as a single vacuum cleaner.
Moreover, the automated packing system uses FSC-certified cardboard to produce custom-sized boxes, reducing excess packaging and resource consumption.
Ingka Group fulfilment & services global head Marcus Baumgartner said: “This is a great milestone in our omnichannel journey – both for IKEA South Korea and globally. By revamping our stores and embracing new technology, we are able to support our co-workers while still providing inspiration for our customers and being closer to meeting their needs.”
