IKEA Pallet Conversion: Interview on Rollout Progress

Further to our story on the IKEA wood pallet conversion to paper pallets and loading ledges, this update on the IKEA pallet transition was published by IKEA in June 2011. It was offered to us yesterday by IKEA in response to our request information about the rollout.

Update on HM Now Profile Element Rollout

17 Jun 2011 09:27 (CET)

As you all know IKEA is phasing out its wooden pallets from the goods flow and replacing them with
paper pallets and loading ledges. To be able to place the paper pallets on the warehouse racking, metal
profiles are needed to be placed on the “racking shelves”. IKEA IMS Store Equipment is the one taking
care of the purchasing and implementation of the metal profiles in the stores, with Uwe Schmidt as
project leader.paper pallet

So Uwe, I know that you have come a long way already with the implementation in Europe.
How do you think it has gone so far?

So far the implementation has gone well and according to plan. Upcoming issues we have had to deal
with we have turned into learning and switched into improved actions. The efficient communication we
have between the different involved parties plays a crucial role. The great cooperation between Retail,
DS, IMS Store Equipment and our suppliers finding solutions together helps when it comes to follow the
implementation plan and stick to our goals.

How many stores in Europe are ready for the paper pallets now?
End of week 25 we will have installed 450.000 metal profiles in 160 stores in Europe. So we only have
194.000 metal profiles left before the roll-out is completed in Europe.

What are your reactions from the stores that you visit?
We have paid a visit to the countries that had the installation of the metal profiles done to see what
specific issues they might have. Our visits have been very much appreciated by the stores. They feel
confident in what we have done and feel that with the ongoing communication we have had over time, it
is easy to contact us if they have any questions.

Using paper pallets require some new ways of working from the store personnel. Have they
adjusted to their new ways of working?

It is correct that this requires new ways working. The HM Now responsible in each country has taken
care of the training to the concerned co-workers in the stores. IKEA Retail organization is also in contact
with the countries that have had the metal profiles installed to get their feedback and hear what their
impressions are when it comes to taking care of the daily business using paper pallets and loading
ledges.

I know that Europe is the first step in the implementation phase. Which countries will follow
now?

Right now IKEA IMS Asia Pacific is working with the roll-out in China, Japan and Australia. The roll-out in
China will start early September, 2011. Japan and Australia have already started their installation.
IMS North America is working with the roll-out in Canada and the US. The roll-out in Canada is
scheduled to start in August 2011 and continue into the coming financial year. The US will follow with
their roll-out as soon as possible.

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