Image: Henri-Kristian Kirsip
16 Dec 2024
Estonia’s new logistics centre sets the bar for efficiency
In the heart of Maardu, Estonia, TKM Grupp has unveiled a logistics centre designed to set a new standard for modern retail logistics. Built to streamline operations, elevate customer experiences, and minimise environmental impact, this state-of-the-art facility was made possible with financing from NIB.
The first thing you notice about TKM Grupp’s logistics centre is its sheer scale—a nearly five-hectare plot housing a 17,200 m² facility purpose-built to handle the complexities of modern retail. Nestled amidst Estonia’s industrial heartland, some 15 kilometres east of Tallinn, the logistics centre operates as a hive of activity, where goods flow seamlessly through optimised systems.
“The development of the logistics centre has been part of our long-term strategy,” says CEO Raul Puusepp. “All aspects were carefully considered, as we sought the right solutions and opportunities that fit our needs in the best possible way.”
In 2024, NIB provided EUR 16.1 million to finance TKM Grupp’s logistics centre, aligning with the bank’s strategy to expand private sector lending in the Baltics.
Sustainability at its core
But it’s not all about logistics; sustainability is in the fabric of the building. Outside, a solar park gleams under the Estonian sun, generating renewable energy to power operations. Inside, energy-efficient systems and smart design earned the facility a BREEAM certification.
The environmental impact goes beyond the building itself.
“The goal was to build as energy-efficient a facility as possible. Equally important was the goal of reducing the distance travelled by delivery trucks by one million kilometres per year,” Puusepp notes.
By reducing emissions, TKM Grupp demonstrates its commitment to environmental stewardship while achieving operational efficiency.
“Reducing our costs and accelerating processes means we can offer even more attractive and competitive price levels to our customers,” says CEO Raul Puusepp.
Better logistics, better customer experience
Streamlining operations at the logistics hub doesn’t just benefit TKM Grupp—it delivers direct advantages to customers. Pre-sorting goods for entire aisles eliminates time-consuming in-store inspections, enabling faster restocking and ensuring shelves are filled with quality products. This also drives down personnel costs, allowing for more competitive pricing.
“Reducing our costs and accelerating processes means we can offer even more attractive and competitive price levels to our customers,” says Puusepp. “The new centre also minimises potential overstocking —campaign management is more efficient, and ordering is smarter. Additionally, we can ensure more consistent quality for certain product categories (such as fruits), as quality control is centrally managed”.
Customers can look forward to a consistently improved shopping experience. Whether in Selver—one of Estonia’s largest retail chains—or in future e-commerce ventures, TKM Grupp’s customers can expect quality and elevated customer experience.
Built for the future
Beyond its current operations, the logistics centre is a forward-looking investment. The facility has room for growth, whether that means integrating logistics for other TKM Grupp businesses or adapting to future market trends.
“We have the opportunity to expand the logistics centre in the future and potentially integrate the logistics of other companies within the TKM Group. This could include our department stores and beauty business, for example,” Puusepp shares. “However, the realization of these plans depends on many other factors, and it is too early to discuss any concrete plans”.
Already now, TKM Grupp’s new logistics centre in Maardu stands as more than a building—it’s a statement of intent. The company is raising the bar for forward-thinking retail logistics and inspiring others to follow suit.