IKEA PH says addressed supply chain issues in time for opening

Warren De Guzman, ABS-CBN News

Posted at Nov 10 2021 06:33 PM

A view of the IKEA building George Calvelo, ABS-CBN News
A view of the IKEA building facade in Pasay City on November 10, 2021 as it operates 24/7 to cater to online orders from its customers since November 3. George Calvelo, ABS-CBN News

MANILA - IKEA Philippines said it is also having supply chain issues but this will not affect the opening of its biggest store in the world this year.

The Swedish furniture giant said its store in Pasay City has been servicing online orders 24/7 and scaling pandemic logistics obstacles to ensure goods are delivered to customers on time.

In an exclusive warehouse tour with ABS-CBN News, IKEA Store Logistics Manager Lesniewski Jarozlaw shared a peek into the facility and their operations as they overcome challenges brought by the COVID-19 pandemic.

“Definitely we are affected. Generally, there is the biggest supply chain constraints we have ever seen in the IKEA world. We spent a little bit more time to secure... so that we have enough stock in the country for the opening,” Jarozlaw said.

But he said they are working hard to ensure this won’t be a problem for Filipino customers.

"I can assure that our global partners and also we are here, we are doing our best to deliver the best availability possible to our customers.”

Although the company declined to disclose online sales details, he said they have around seven 40-foot containers securing goods daily for customers.

Based on e-commerce sales, the top selling products were those linked to remote work as well as clocks which range from P90 to P590, and artificial potted plants valued at P290.

Children's items have also been popular, he said.

IKEA tapped 4 logistics firms to deliver goods in Metro Manila, Cavite, Laguna, Batangas, Rizal, Bulacan, Pampanga, tarlac, Bataan, Subic, and parts of Quezon.

At least 4 electric vehicles for delivery will be included in its fleet in Pasay City as part of its sustainability program, the company said.

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Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Photo shows the warehouse operation inside the IKEA building in Pasay City on November 10, 2021. The online operation of IKEA is currently working 24/7 catering to orders from its customers since November 3, 2021. George Calvelo, ABS-CBN News

Filipino Workforce

At least 500 Filipinos are working at the Pasay City store.

One of them is Jose Orpilla who is the Out Bound Goods Flow Manager of IKEA Pasay City. He started his career with IKEA in Abu Dhabi in the United Arab Emirates.

Orpilla said he jumped at the chance to work here.

"Syempre, nandyan kasi yung big time opportunity na makapagtrabaho dito sa aking bansa. Of course we are proud kasi dito nila binuksan ang biggest IKEA in the world," he told ABS-CBN News.

(Of course, there's that chance to work in our country. And we're proud we're opening the biggest IKEA in the world here)

IKEA earlier tapped Filipino company Rags2Riches to become its partner for textile alteration services.

IKEA Pasay City's 5-floor facility will have a warehouse, retail operations, a call center for the e-commerce business, and a restaurant among others, its country store manager Georg Platzer earlier said.

The construction of the world's biggest branch was first announced in 2018.

-- with a report from Jessica Fenol, ABS-CBN News