IKEA selects Descartes Systems Group, CGEY to cut costs

Descartes will optimize IKEA's inbound supply chain.

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Waterloo, Ontario  Thursday, May 10, 2001  The Descartes Systems Group Inc., a provider of Internet logistics solutions, and management and IT consulting firm Cap Gemini Ernst & Young, announced today that furniture retailer IKEA has selected Descartes to optimize its inbound supply chain and Cap Gemini Ernst & Young to provide systems integration services for the Descartes technology at IKEA. Descartes' DeliveryNet technology is designed to allow IKEA to better control inventory costs through more visible and efficient logistics activities between IKEA's global suppliers, carriers and distribution centers.

"We selected Descartes for the depth of its network capabilities. Cap Gemini Ernst & Young contributes its systems integration expertise to rapidly deploy the Descartes network across our supplier and carrier communities," said Kjell Roos, global transportation manager at IKEA. "IKEA continues to seek out ways to create greater efficiencies throughout the supply chain, and Descartes offers the technology together with Cap Gemini Ernst & Young's services to help us meet that objective today."

"The ability to proactively manage the supply chain requires visibility and connectivity between both internal and external systems. IKEA has subscribed to that principle with the Descartes technology and is making the transition with the help of Cap Gemini Ernst & Young's systems integration expertise and consulting," said Henrik Dam Larsen, executive consultant, Consumer Products Retail & Distribution at Cap Gemini Ernst & Young's Global Sector Unit. "The mindset can now change from handling everything to handling exceptions based on Descartes' proactive alerts system. This is an important step forward to cope with the increasing volumes that IKEA is enjoying."

"IKEA is a wide-ranging company in terms of sourcing products and distributing them to consumers around the world. Such globally dispersed supply chains require a high degree of coordination across the supply chain community to keep inventory and logistics costs under control," said David Marcus, senior vice president, Retail and Consumer Packaged Goods at Descartes. "Descartes' DeliveryNet solution will enable more efficient communications among IKEA's supplier and carrier community and tighter control over IKEA's inventory in transit."