The value of Ikea's investment in Optoro's latest funding round was not disclosed. A study from Arris Retail estimates over $369 billion worth of sales were lost in 2018, due to returns, which can also increase out of stocks and costs from redistributing and merchandising inventory. ' Retailers using Returns Optimization Platforms are able to divert over 99% of returned product to landfill, eliminate waste by up to 70% and reduce emissions by 51%,' Optoro claims in a sustainability white paper.ĭiverting sellable merchandise from landfills and back into retail destinations is not only a more sustainable option, but it can also serve retailers' bottom line. Ikea anticipates the use of data analytics in its returns process will reduce the volume of products sent to landfills, according to the release. 'Optoro’s solution will enable us to eliminate much of the waste created in the reverse supply chain, from minimizing the carbon emissions released in return shipping to finding the best next homes for returned items.' 'We’re on a mission to become a circular business by 2030,' Javier Quiñones, president and chief sustainability officer of Ikea Retail U.S., said in a statement.

The company can also create an end-to-end view of reverse-logistics processes. Optoro's platform uses data analytics and machine-learning algorithms to route returned and excess inventory to optimal locations within an enterprise's network.Ikea will employ logistics startup Optoro's technology to improve its returns management and reverse logistics processes, the retailer announced Wednesday along with an investment in the company's latest funding round. The pilot will encompass 10 Ikea distribution centers, 50 retail stores and its customer support center in the U.S., with the potential to expand to other markets in the future.

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