Investor blogs and podcasts

As one of the leading trading sector operators in Northern Europe, Kesko transports vast amounts of goods to its stores and customers every year. This is why efficient, smart logistics is a key factor in ensuring our competitiveness, growth and good profitability. Kesko has made significant investments in its logistics operations in recent years, most notably building a massive new logistics centre for Onninen’s technical trade and car trade spare parts in Finland. Kesko has also invested in efficient centralised warehousing and advanced IT solutions, robotics and automation in its grocery trade.

Massive new logistics centre ensures Onninen does not have to worry about bottlenecks once construction in Finland takes off again

The Onnela logistics centre in Hyvinkää was the biggest construction project in Kesko’s history. The massive building, located on a 42-hectare site, covers 85,000 square metres – equivalent to about 12 football (soccer) fields. Construction was completed in August, and nearly 2,000 truckloads of goods are currently being moved in. Onninen’s technical trade logistics and K-Auto’s spare parts logistics will begin operations at Onnela in Q1 next year, with a workforce of 400–500 employees.

Construction on the centre was completed on schedule and clearly below the budget of €300 million. Kesko financed the Onnela investment with an issue of a green bond.  

From on investor stand point, the investment in a bigger and more modern technical trade logistics facility is important: since Kesko acquired the company in 2016, Onninen’s business has grown significantly. When construction last hit peak levels, logistics created some bottlenecks for Onninen. With the new facility, this should no longer be an issue when the construction market properly takes off again.

The investment in Onnela enables future growth for Onninen Finland and K-Auto’s car trade service business, while improving logistic services. 

The new, much bigger logistics centre will allow Onninen to expand its product selections. It removes the need for satellite warehouses, with all items delivered to the customer in a single delivery. Onnela’s Warehouse Management System is more user-friendly, and the higher level of automation enables faster picking of products, with fewer mistakes and better ability to tailor deliveries based on customer needs. Onnela also promotes the sales of value-added  services, such as pre-installation, tool rental, and assembly. For the workers, Onnela offers better fire and occupational safety, with improved ergonomics.

Once Onnela is up and running, Onninen’s current logistics facility – which is also located in Hyvinkää – will be taken over by K-Rauta. Meanwhile, K-Auto’s logistics for car spare parts will move to Onnela from Sweden, thus improving availability and enabling one-day deliveries.

Efficient logistics support the good profitability in Kesko’s grocery trade

Kesko’s logistics handle one-third of all food in Finland. Every day, 700 trucks deliver goods to some 1,100 K Group grocery stores and Kespro’s foodservice customers – such as  restaurants, lunch cafeterias, schools, hotels and hospitals – around Finland. Operations centre around a 95,000-square metre central warehouse in Vantaa, supported by 10 regional logistics terminals.

Efficient logistics is one of the cornerstones for the good profitability in Kesko’s grocery trade. The efficiency is underpinned by centralised warehousing, high volumes, full delivery loads, and the utilisation of advanced replenishment systems, automation and AI.

Kesko’s central warehouse houses 21,500 SKUs (stock keeping units), which are transported from Vantaa to grocery stores and restaurants across Finland. Kesko strives to reduce logistics emissions by introducing more EVs for transports.

Kesko’s grocery logistics model, in which multi-temperature trucks make joint deliveries to both K Group grocery stores and Kespro’s foodservice customers across the country is unique and well-suited for a country with such long distances as Finland. On their way back to Southern Finland, the trucks handle inbound transportation from suppliers and reverse logistics from customers. To reduce transport emissions, Kesko is set to increase the number of electric transport vehicles to 200 by 2030.

Images of Onnela by Saku Metsärinne

We organised a visit to our logistics facilities in Onnela and Vantaa as part of our investor event in September 2025. All presentation materials are available on the event web page. 
 

Print

Share