East Sweden
 

Norrköping gives Rusta "excellent good value for money"

The offer "value for money" doesn't only apply to Rusta's customers. The slogan also very much applies to the company's own investments. When the retail giant grew out of its Småland warehouses and decided to invest in a whole new central warehousing solution, the hunt began for the best possible location. It turned out that Norrköping was well equipped for Rusta.

Retail Chain Rusta is growing like mad. The company's rate of turnover has been doubling every five years and new stores are being opened in a steady stream. As part of its aggressive growth strategy, Rusta built a completely new, 67,000 square metre, or quite simply gigantic, central warehouse at Malmölandet in Norrköping. Norrköping's great infrastructure for land and sea transport, and its geographical situation with a large catchment area meant that Norrköping suits logistics-dependent Rusta down to the ground.

Location of the central warehouse strategically important

After Rusta concluded that they needed a better warehouse structure to be able to continue to grow, the search began for the right place to build. Over 55,000 people visit one of Rusta's 70 stores across Sweden on a daily basis. The quantity of goods on offer is enormous. The majority of the products in Rusta's range are imported from different parts of Asia, where the company has its own purchasing offices. Careful planning and very efficient logistics solutions are required in order to transport the products in the most cost-effective, smart and environmentally-friendly way possible from one part of the world to over 70 shops in a completely different part of the world. The hub of the entire distribution chain is the company's Swedish central warehouse. In order to bring together incoming goods and then distribute them in the best way possible to Rusta's shops all over Sweden requires that the central warehouse is very strategically located. So where then should Rusta's new central warehouse be located?

General requirements

With the Mälar Valley, including Stockholm as its main market, Rusta started looking for the best possible location for its new central warehouse in this region. Close proximity to as many of their own stores as possible was of the highest interest, since they were very determined to keep freight costs down. In the hunt for the right of place to establish, three main requirements were formulated for the hometown of Rusta's new warehouse to meet. 

  1. Close to a trunk road
  2. Close to a port
  3. Close to a Combi Terminal and railway

Rusta searched high and low in different parts of the country, particularly in and around the three major metropolitan areas. Several possible alternatives emerged.  But only one city fulfilled all the criteria while also offering vacant land and giving the new settlers "value for money". Norrköping.

Norrköping as the hub, for land and sea

After a detailed and positive dialogue with Norrköping Municipality and the city's trade and industry office, Rusta made the decision to build its central warehouse in Norrköping. Here, Rusta found everything it had been looking for. And a bit more as well. Access to a deep-water port was extremely important for the decision, since Rusta transports a lot of goods by ship. Goods that come via train on rail are also collected in the port's Combi Terminal, which in many ways makes Norrköping Port a hub for Rusta's goods flows on their way to the central warehouse. Then when the goods are to be shipped out to the many stores, the lorries have rapid access to the E4.

The big and the small of it

Optimum logistics solutions for high-volume goods flows and opportunities for alternative modes of transport are key for Rusta.  This is true for when products are being brought into Sweden, but proximity and efficiency are also at least as important in the smaller perspective, that is, transporting goods from various arrival points into the central warehouse and then out again. Thanks to Norrköping's relatively small surface area, the distances to drive between the port, train station and trunk roads are relatively short. This facilitates cost-effectiveness, fast deliveries and not least, it's environmentally sound – something that is very important to Rusta.

Investing in an expansive region

The decision to move a business and invest in a central warehouse of Rusta's calibre is not taken lightly. The company carried out detailed analyses, weighing up strictly commercial parameters, and in comparison with all the other alternatives, Norrköping came out the winner. The city's other successes on the logistics front were particularly appealing. Rusta feels confident that they are investing in an environment and a region that dares, wants and welcomes more companies to establish themselves here. Also, the availability of skilled staff is an advantage. Rusta will need to employ, both in the short and in the long term. That the region has a number of high-quality courses in logistics in particular bodes well for the future.

Text: Marie Karlsson, Copy & Writing