Transition from owned to leased premises boosts Finn-Tack's growth
04 Sep 2020
The operations of the equestrian sports equipment importer Finn-Tack have expanded over the past few years, and their storage facilities no longer supported the company’s growth in the Nordic countries. Additionally, the location of the warehouse needed to be optimised to better support growth as thier previous warehouse in the Netherlands was not able to provide the best possible service to the Nordic market. Working with Logicor, the perfect warehouse facility with the right size and location was quickly found, and by leasing the facility the company has increased flexibility for future growth.
Finland was selected as the location due to its logistical advantage of having short and affordable deliveries to all Nordic countries. Finn-Tack already owned two properties staffed with the company’s employees in Lahti and therefore was aware of the efficiency of operating in the Lahti-Hollola region. Initially, Finn-Tack also considered expanding its existing production facilities. In the end, however, the company decided to sell its facilities and become a tenant.
Leasing a warehouse provides leeway when the business goes through change
Owning a facility means slow and rigid responses to changes in business operations, whereas leasing a warehouse gives Finn-Tack much more flexibility with regard to growth and other changes.
When the business grows or the location of the warehouse no longer serves its purpose, leasing offers more options for scaling the facilities according to the company’s needs than owning does.
“For us, leasing was the most logical solution at this point. It gives us freedom and doesn’t bind us to one specific property for a long time. Leased premises also offer us flexibility for seeking further growth,” says Johannes Nevanlinna, Managing Director of Finn-Tack Ltd Oy.
Owned premises tie up considerable amounts of a company’s funds. For Finn-Tack, the decision to transition from owned to leased premises was spurred not only by the physical flexibility of leasing but also by the opportunity to release capital which can then be used to support growth. The new facilities will provide Nordic and global services, functioning as the logistics centre of Finn-Tack’s harness racing products.
Logicor’s quick reaction and understanding of its customers streamline the leasing process
When the decision to lease had been made, it was important to quickly find new premises and complete the move. The company narrowed down the desired location and started to look for a 3,000–4,000 m2 facility that would be as tall as possible and enable the development of a functional and efficient warehouse. As the management of Finn-Tack is located in Norway, they decided to use the services of an agent to find the right facility.
The need for a new facility was urgent, and Logicor’s expertise in listening to the customer’s needs and understanding them quickly produced the optimal solution. Logicor explored its 1.1 million square metre property portfolio and was able to propose a storage facility that was perfect for Finn-Tack. The leasing process was smooth and an efficient overall solution was quickly established with the client. A large property portfolio nearly always produces a suitable property in the location desired by the client. However, Finn-Tack’s schedule was quite tight and it took some skill to find a solution that was just right.
“Facilities such as this are quite rare, and compromises are usually required. For Finn-Tack, we were able to find a facility that had it all: the right location, a suitable size and racking already in place. The premises were excellent and ready for action, the only alteration work needed was replacing the light fixtures with LEDs. Thanks to the new, energy-efficient lighting, the customer will save 50% of the electricity required for lighting,” says Asset Manager Tommi Savinainen from Logicor.
A streamlined process requires agile communications and quick responses from both parties.
“The overall cooperation has been efficient. If any issues or questions arose, they were always taken care of,” says Johannes Nevanlinna.