FLOW to Launch Bespoke Facility for IKEA in KAEC

FLOW, a progressive logistics company that is part of the Ghassan Ahmed Alsulaiman Group, has recently announced the start of its new Omni-channel and e-commerce fulfillment center in King Abdullah Economic City (KAEC), a bespoke facility for IKEA Saudi Arabia.

The new facility, which has been tailor-designed to service IKEA’s e-commerce and pay-and-go requirements, will be launched in two phases, to meet the growing needs of the customers. The first phase will be operational in February 2017, where a total of 1,800 orders per day may be picked, packed and dispatched. The second phase will handle up to 5,000 orders a day in two shifts with the possibility to increase capacity further with 24 hour operation. 

Frank Courtney, CEO at FLOW, commented on the launch of this new project, at a groundbreaking ceremony in KAEC: “We are very honored to be partnering with IKEA for this exciting new project, where we have designed a facility that specifically meets their unique needs.”

“Over the last year, we have come to realize that there is a lack of professional facilities and logistics infrastructure in the Kingdom to support e-commerce and IKEA’s Pay & Go businesses that possess large scale volumes. We at FLOW have developed our services to meet the growing requirement for reliable, cost-effective e-commerce fulfillment and contract logistics and we are ready to fill this gap in the market,” Courtney added. 

Saud Alsulaiman, CEO at IKEA Saudi Arabia, said: “We have high hopes for this new facility and believe that FLOW is very capable in providing us with the distinctive solutions we need to meet our market requirements, and help us achieve our Omni-channel retailing goals.”

“As we continue to grow in the Kingdom, we are constantly developing new channels to meet our customers’ desires and the launch of this new project highlights our commitment to improving customer service and providing a better everyday life for the many,” Alsulaiman added.

Mr. Fahd Al-Rasheed, Managing Director and CEO of King Abdullah Economic City, welcomed FLOW to the list of investors in the King Abdullah Economic City and congratulated them on their decision to make KAEC the base of their expansion plans in the region, and said: “We are very pleased with this new strategic partnership which only proves that the economic city continues to be outstandingly successful in attracting top international companies. KAEC is the ideal starting point for FLOW’s business in the Kingdom as it offers a technologically advanced infrastructure and public services that ranks it among the top economic cities in the world.”

“Other key attractions of KAEC include top rate logistical services, quality residential accommodation suitable for income levels and the unrivalled transportation facilities which includes the high speed Haramain Railway and King Abdullah Port.”  He added

The automated facility will cover 75,000 square meters, with the high bay warehouse at a height of 37.5 meters. The facility being designed with multi-floors, producing a total floor area of 117,600 square meters, making it the largest e-commerce fulfillment facility of its kind in KAEC. This initial design will be able to accommodate 180,000 Euro or Industrial pallet equivalent storage positions. The facility is designed in such a way to cater to both full pallets and fine pick e-commerce parcel solutions. It will operate 16 hours a day, with only 180 people per shift for phase1.

FLOW will be introducing a number of unique solutions to meet IKEA’s requirements, including an Oxy-reduct (oxygen reduction solution) that will prevent fires whilst eliminating the risk of water damage to the products and the internal material handling systems.