The Material Area Paper Pallet is a new Material Area at IKEA Components. IKEA has decided to phase out wooden pallets from our flows globally. The objectives of this change are to decrease costs and create a more sustainable business by having less impact on the environment.
This change will impact all functions within Supply Chain as well as all stores and suppliers in Europe. For example new handling and storage solutions need to be installed in store racking and supplier plants need to rebuild or adapt the packaging lines in order to use of alternative handling material.
The total gods flow for IKEA in EU is more than 28 million m³ per year. IKEA Components will be responsible to source and supply the paper pallet in Europe.