Veken Kaluste boosts its growth by partnering up with Logicor
15 Aug 2022
Veken Kaluste is a pioneering Finnish online furniture store and one of the most fastest growing companies in its line of business. Functioning warehouses close to its customers are critical to its success, as is Logicor's desire to build a long-term partnership with Veken Kaluste.
Veken Kaluste has been selling furniture online since 2008. From the very beginning, this pioneering company set its sights on systematic growth, aiming to become one of Finland's leading operators in the furniture and interior decoration business.
One of our success factors has been, and continues to be, quick availability. That's why the functionality and location of our logistics properties plays a critical role in our business, says Markus Ranua, Managing Director of Veken Kaluste.
The cooperation with Logicor began in 2020 with the first lease agreement, concerning premises of around 4,300 square metres, at the Haapalankatu 1 property in Lahti. In less than a year, the company leased additional space of roughly 10,000 square metres.
A warehouse close to customers
Veken Kaluste has doubled its net sales over the past few years. Growth has been fastest in Southern Finland in particular. In addition to its own central warehouse in Ranua, the company needed additional capacity close to areas with the greatest growth potential.
We needed to find a warehouse space closer to our customers. Expectations relating to delivery speeds are growing continuously and our warehouse pick-up options are also very popular, says Markus Ranua.
Ranua contacted Logicor, which specializes in logistics properties. Asset Manager Tommi Savinainen began looking for a suitable property located at a transport intersection which would also have sufficient ceiling clearance and contain existing features needed for e-commerce operations.
I also paid attention to the warehouse's micro environment. People need to be able to drive up to the pick-up warehouse easily in their own vehicles, without disturbing the HGV traffic in the goods yard, says Savinainen.
The partnership reduces the high-growth company's risk
Logicor invests in lasting, customer-driven partnerships. Our cooperation with Veken Kaluste, which began in 2020, is a good example of this.
We want to focus on our customer's business, to understand it, and to find a solution that caters to the customer's needs. Our discussions with Veken Kaluste convinced us of their future plans, which is why we decided to partner with them in order to grow together. This evens out the risk for both parties, given that the lease agreements and any changes required to the properties are scheduled in cooperation with the customer and according to the business' s growth potential, with a view towards long-term, sustainable solutions, says Savinainen.
Markus Ranua is very happy with both the growth path and the partnership with Logicor. The Haapalankatu property has become the central hub of Veken Kaluste's logistics operations.
Logicor demonstrated a genuine desire to understand our business, Ranua says.