#AsiaeCommerceAwards highlight: How IKEA delivered happiness to consumers with parcel initiative

Clinching the Best eCommerce Fulfilment at MARKETING INTERACTIVE’s Asia eCommerce Award 2020 was GOGOX with its IKEA Parcel initiative. GOGOX is an eCommerce fulfilment enabler that provides last-mile delivery service to enterprise and SME brands like IKEA, giga! (Starhub), Casio, Haworth, Rakuten. As a tech-enabled logistics provider, GOGOX’s ability to provide quality service, to scale up capacity for seasonal surges, and its agility to meet the ever changing client demands has enabled GOGOX to deliver for a plethora of brands.

GOGOX has been a logistic partner with IKEA for the past four years with outstanding performance. The core services provided by GOGOX in the past four years were mainly kiosk service, back office customer relations recovery as well as home delivery and assembly.

Challenge

IKEA parcel delivery volumes were always second to home furniture deliveries, and the latter are always delivered by a traditional logistics company. However, with the implementation of lockdown restrictions in Singapore as part of the COVID-19 prevention measures, IKEA witnessed a surge in parcel orders. This resulted in IKEA’s logistic provider being unable to support to sudden increase in orders, due to its inability to scale up its capacity to meet the logistical support required by IKEA.

This resulted in the creation of a backlog for IKEA with orders being delivered over a week instead of three days and some parcels were even lost during transit which eventually led to customer dissatisfaction. The challenge for IKEA was to devise a solution to solve its delivery issues.

Strategy

Instead of reaching out to traditional yet established logistical companies that IKEA have never worked together before, IKEA decided to engage GOGOX. Although GOGOX was mainly anchored at the Alexandra outlet, IKEA and GOGOX worked together to co-create solutions that could solve IKEA’s delivery issues.

Execution

With the flexibility and forward thinking of GOGOX, both parties were quick to reach an agreement. Within the next few days, GOGOX had set up a parcel delivery system to support the surges in IKEA’s parcel orders and GOGOX outperformed all other providers in terms of lead-time and quality.

Results

The IKEA Parcel initiative was successful as it not only did it increase additional revenue to GOGOX (IKEA business), it also helped IKEA to solve its delivery issue within 48 hours thereby reducing customer complaints while enabling IKEA to continue its online operation and sales during the long closure at the same time.

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GOGOX’s ability to aggregate and provide capacity overnight provided opportunity for the company to handle all parcel deliveries for both Alexandra and Tampines IKEA store. It was said that by the end of the financial year, customers had placed more than 525,000 online orders and rung up SG$135 million in web sales - more than double the company’s eCommerce turnover from the previous year”.