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September 04, 2020 | Eva Buddas

DB Schenker is one of the leading providers of integrated logistics solutions in Finland. The company’s competitiveness relies on the ability to quickly react to requests for quotations and present customers with logistics premises solutions customised to their needs with attractive contractual terms. The provider of warehouse facilities plays an important role in this equation and cooperation between Schenker and Logicor proved its effectiveness when new premises were flexibly negotiated for a Schenker customer in the refrigeration equipment business. Located in Kouvola, the premises benefits from good transport connections and competitive prices. The solution and location are a good fit with Schenker’s business objectives and the customer’s needs.

For us, the most important aspect of cooperation is that the lessor understands the customer requirements and the need for flexibility. One of our customers had to vacate its warehouse facilities in Turku, and we immediately started a constructive discussion with Logicor regarding new premises. We were able to flexibly lease precisely the part of the building that our customer needed, and later we also found users for the remaining parts of the building."

Miko Nissinen

Head of Performance and Capacity Planning at DB Schenker

With Logicor, negotiating a flexible agreement is easy. That’s an important aspect of the cooperation for us because we have to be able to put together an attractive proposal for our customer to close the deal. Logicor ensures that the proposed package is an effective solution for all parties concerned."

Miko Nissinen

DB Schenker

A landlord with a long-term approach to service provision improves Schenker’s ability to react

Schenker worked together with Logicor not only to find suitable premises, but also to adapt it to the customer’s needs.

We visit the potential property with Logicor to inspect the quality of the floor surface, the free height and other critical factors. In the case of the customer that moved to Mestarintie in Kouvola, we reviewed the property’s repair plan with Logicor to discuss the planned repairs and their scheduling. Even though the property had not been renovated yet, reviewing the plans and schedules enabled us to show the customer what improvements would be made. Logicor then followed through on all of the promised changes."

Nissinen

For a logistics operator, it is important to partner with a lessor that keeps them up to date on available properties even when a deal is not actively in the works. This allows them to react quickly to customers’ requests for proposals, which increases the probability of closing deals.

In DB Schenker’s Finnish organisation, experts in contract logistics and the property department together assess suitable property options for each proposal they prepare. We engage in active bilateral communication with the property department. We find out about their needs and inform them about properties that are currently vacant or soon to be vacated. The emphasis is on close and regular communication."

Markku Mikala

Senior Asset Manager from Logicor

When we have an ongoing understanding of the available premises, we are one step ahead when a proposal request comes in. If we only started reviewing the potential options and negotiating in-person visits after the request has been received, we might waste several weeks of time."

Miko Nissinen

DB Schenker

Competitively priced Kouvola is an attractive proposition

Kouvola was previously a significant hub of transit logistics. Even as late as the turn of the 21st century, large volumes of cargo from the far East arrived in Kouvola by sea and rail. Thanks to this background, Kouvola still offers an excellent range of warehouse facilities and diverse auxiliary services. The recently opened fast rail connection between China and Kouvola adds to the appeal.

The Port of Kotka is nearby, making it easy to bring containers into Kouvola. The city’s location is also advantageous in terms of outbound transport. For the Schenker customer that moved from Turku to Kouvola, goods are delivered to Kouvola by lorry from factories around Europe and then transported onwards to different parts of the country. Kouvola’s location serves the company’s needs just as well as Turku did, and the prices are also quite reasonable.

When customers evaluate their options, they always calculate the total cost. What are the costs of transport, warehousing and the handling of goods? Transporting goods out of Kouvola is no more expensive compared to other locations in Finland, so we have been able to offer warehousing solutions to our customers at attractive prices."

Miko Nissinen

Kouvola makes it possible for us to put together a highly functional and attractive package for our customers. Prices are reasonable and the properties are in good condition."

Miko Nissinen

Schenker

Kouvola’s logistics in numbers

81,000 m2 the total floor area of the logistics and warehouse facilities owned by Logicor

230 ha the total area of the Rahtikylä logistics park*

100 km the total length of railways in the area*

approx. 90 logistics companies*

*Source: Kouvola Innovation