IKEA: Interview with Sorin Tibisoi

In addition to offering innovative home-furnishing solutions, IKEA is renowned for its commitment to enhancing the customer experience, with logistics playing a central role. We spoke with Sorin Tibisoi, Logistics Manager at the IKEA store in Ljubljana, who began his career as a warehouse-services provider for IKEA and played a key role in opening the company’s second store in Bucharest. He shared his insights into how IKEA manages its supply chain, sustains competitive advantage, and leverages advanced technologies to improve both customer experience and operational efficiency.

1. What distinguished the opening of the IKEA store in Slovenia in 2021 from openings in other countries, especially in light of the COVID-19 pandemic?

The Slovenia opening in 2021 presented unique challenges and opportunities compared with other markets, primarily due to the impact of COVID-19. Despite widespread disruptions, Slovenia was among the very few—if not the only—countries that successfully welcomed customers to a new IKEA store during the pandemic. To mitigate COVID-related effects, we had to adapt our working methods substantially, implementing a series of strategic adjustments.

Our foremost priority was ensuring supply-chain continuity to maximize product availability—particularly for our best-sellers—at launch. Even amid global supply-chain disturbances such as manufacturing slowdowns, port closures, and shipping delays, we achieved a 94 percent in-stock rate. This result reflects our team’s dedication and ability to overcome unprecedented obstacles.

A key measure was securing alternative transportation modes, including the charter of additional vessels and containers. This action stabilized our supply chain and maintained trade with European suppliers, enabling us to meet Slovenian customer expectations for the quality and variety synonymous with IKEA—especially crucial in a new market.

2. How does IKEA integrate e-commerce with traditional retail and employ advanced technological solutions to enhance customer experience and logistics efficiency?

We blend online and in-store logistics to meet the growing demands of e-commerce and deliver seamless service across all customer touchpoints. Our omnichannel strategy brings together the in-store shopping experience, online ordering, “Click & Collect,” and efficient home-delivery options to create an integrated, consistent journey.

In partnership with reliable third-party logistics providers, we extend our delivery reach and bolster reliability. Within our own operations, we prioritize advanced technologies—such as drones for precise stock audits, robotic wrapping systems, and automated strapping machines—to accelerate processes and enhance workplace safety. We have also introduced eco-friendly cardboard pallets that reduce environmental impact while increasing transport efficiency.

By integrating these innovations, we strive to offer customers the best possible experience, demonstrating that IKEA not only keeps pace with logistical advancements but leads in their adoption.

3. How does IKEA manage relationships with key logistics partners and suppliers to ensure a reliable, collaborative network, particularly amid global uncertainties?

Managing partnerships with logistics providers and suppliers is essential to IKEA’s operational excellence. Every collaboration is built on shared values and transparency, fostering a dependable, cooperative network within our global supply chain. Our integrated warehouse and transport management systems create a flexible infrastructure that helps us navigate global uncertainties.

For instance, in Russia we faced significant challenges—including store closures and contract terminations with local suppliers, which affected 10–15 percent of our product range. In response, we conducted a thorough supply-chain analysis to identify vulnerabilities, swiftly onboarded alternative suppliers, and diversified our supplier base to enhance resilience. Strategic planning and close cooperation with new partners were critical to ensuring a smooth transition, all while upholding our commitments to sustainability and ethical sourcing. This approach has demonstrated IKEA’s capacity to adapt and maintain business continuity despite substantial market shifts.

Additionally, we employ advanced inventory-monitoring technologies and an efficient order-fulfillment system. Our transport-management platform ensures timely, secure deliveries, and we leverage predictive analytics and continuous process improvements to address delivery times and ergonomic challenges. Strategically located distribution centers support both online and in-store orders; each facility is equipped with automated storage and retrieval systems (ASRS) to optimize space utilization and accelerate order processing. Our fleet of electric delivery trucks is monitored in real time to optimize routing and minimize transit times, ensuring products arrive quickly and in perfect condition.

4. In the current economic climate, how does IKEA balance cost efficiency and quality in its logistics operations while maintaining competitive advantage?

At IKEA, we continually strive to balance cost efficiency with quality in our logistics operations, even amid economic fluctuations. By optimizing our warehouse and transport management systems and resources, we control expenses without compromising supply-chain continuity. Quality is upheld through the integration of advanced technologies, rigorous quality-control measures, and proactive problem-solving.

Moreover, our commitment to continuous process improvement and investment in sustainable practices ensures that customers receive high-quality products at reasonable prices—products that embody IKEA’s vision of creating a better everyday life for the many. This pledge not only enhances customer satisfaction but also reinforces our strong market position.

5. Could you share how IKEA has effectively addressed recent global disruptions—such as challenges in the Suez Canal—and what strategies are being implemented for long-term resilience?

We have adapted our pricing strategies to maintain affordability and profitability, and we have diversified our shipping routes to reduce dependency on any single channel. Transparent communication with customers regarding potential delays remains a priority, fostering trust and resilience during periods of global uncertainty.

6. How is IKEA, in response to challenges in regions like the Red Sea, adapting to evolving consumer demands and improving last-mile delivery strategies to enhance customer satisfaction?

We continuously refine our last-mile delivery strategies, optimizing delivery routes and ensuring product integrity upon arrival. The Ingka Group has set an ambitious goal: by 2030, 100 percent of home-delivery and in-store services will be carried out using zero-emission vehicles or alternative solutions, aiming to become climate positive. To achieve this, we must drastically reduce greenhouse-gas emissions across IKEA’s entire value chain, including emissions generated during delivery.

We view challenges in regions such as the Red Sea as opportunities for innovation, where technology plays a pivotal role in improving delivery efficiency and transparency. We actively solicit customer feedback to refine delivery processes, ensuring responsiveness to consumer needs and elevating overall satisfaction.

7. Finally, what advice would you offer to young logistics graduates entering the field, and what growth opportunities do you foresee in the logistics industry?

For young logistics graduates, versatility and a comprehensive understanding of all aspects of logistics—from supply-chain optimization to e-commerce—are crucial. Focusing on growing sectors such as e-commerce and sustainable logistics presents significant career opportunities. Internships with companies of varying sizes provide deep insights and accelerate professional advancement. Adapting to the evolving logistics landscape and gaining practical experience are essential for a successful career in logistics.