IKEA permanently adopts autonomous delivery in China

IKEA China has permanently adopted self-driving electric vehicles for logistics operations in Anhui Province following a pilot that reduced average customer waiting times from six hours to two. The vehicles transport customer orders from an external warehouse to the IKEA Hefei store and restock products in-store.

Ingka Group, the largest IKEA franchisee, said the autonomous vehicles covered nearly 75,600km during testing and reduced transportation costs between IKEA units by more than 50%. A human operator monitors the vehicles remotely and can take manual control if obstacles are encountered.

“Autonomous delivery is no longer just a concept. At IKEA we are deploying it in daily operations in China, together with partners,” Susanne Waidzunas, Global Supply Manager at Inter IKEA Group, said. “The value is practical: smoother deliveries, better use of time, and a more efficient last mile.”

The electric vehicles measure just over 3.5 metres long and 1.3 metres wide, and can operate without human intervention on approved, mapped roads. IKEA is now evaluating which other markets would benefit from the technology where legislation and infrastructure are favourable, and is trialling autonomous deliveries direct to customers in China.

David McCabe, Global Fulfilment and Core Services Manager at IKEA Retail, said the solution demonstrated “how new technology can shorten waiting times, support our co-workers and reduce costs.”

Source: Ingka Group