IKEA Taps DHL For First Outsourced Distribution Center In Canada


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


IKEA has opened a distribution center near Toronto, its first in Canada operated by a third party, DHL Supply Chain.

The Swedish retailer officially opened the facility in Kleinburg, Ontario, on Sept. 19, but it has been gradually scaling operations for the past two months. 

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

The 550,000-square-foot facility exclusively handles IKEA products destined for home deliveries. It takes capacity pressure off IKEA's other Toronto area distribution center, in Mississauga, and positions the company to grow its e-commerce business in the region's fast-growing northern suburbs. 

"It's bringing us closer to our customers," said IKEA Canada spokesperson Kristin Newbigging.

The 550,000-square-foot distribution center will exclusively handle home deliveries for IKEA. Photo: IKEA Canada

Deliveries from Kleinburg potentially shave about 20 miles from those coming from Mississauga. The difference in time can be more dramatic, considering the notorious traffic on the Toronto area's 400-series highways.


Want Private Access to Benzinga Analyst?

Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.


Kleinburg is already paying dividends for IKEA and its customers by virtue of its location and improved capacity.

"We're already seeing decreases in lead times," Newbigging said.

Apart from improving the efficiency of preparing orders, the shorter delivery distances also result in lower carbon emissions, Newbigging said. 

Kleinburg marks IKEA's fourth distribution center in Canada, including facilities in Montreal and Vancouver. 

While Kleinburg is the first outsourced distribution center for IKEA Canada, its U.S. counterpart has successfully done it, also in partnership with DHL Supply Chain.

"We can learn from them in terms of logistics," Newbigging said.

Kleinburg won't handle large incoming shipments, which will remain the domain of other facilities in Canada and the United States.

Image Sourced from Pixabay


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


Posted In: NewsGlobalMarketsGeneralDHLdistribution centerFreightFreightwavesIKEALogisticsshippingSupply Chain