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Kesko erects new logistics centre with automation technology from Knapp

Kesko has commissioned Austrian intralogistics specialist Knapp to automate its planned new logistics centre. With the new facility in the municipality of Nurmijärvi, north of Helsinki, the Finnish grocery retailer aims to make its supply chain more efficient and flexible, preparing it for further growth.

Pekka Tala, Development Director at Kesko, explains: “We are creating an automation solution that will support our operations for decades to come. It was therefore particularly important to us that the new solution not only meets today’s requirements but also opens opportunities for future development.”

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Kesko plans to install Knapp’s automation technology at the new site in 2028. The logistics centre is then due to come into operation in stages over the following two years. The two companies already have a long-standing partnership. Back in 2020, K Group had automated a distribution centre for its Onninen plumbing and electrical wholesale division in Poland using Knapp technologies.

Solution designed to meet future requirements

The decision to select Knapp had been preceded by a perennial preparatory phase. The joint planning process had demonstrated that the solution was optimally tailored to the requirements of the new logistics centre. The supplier’s broad portfolio, research and development expertise, and scalability of the solution were key factors for the decision.

Kesko aims to meet the shifting consumer demands, who expect faster deliveries and a wider product range. “As a logistics centre is a multi-year project and a long-term investment, it was particularly important for us to find a partner who recognises future developments at an early stage and understands our requirements in the long term,” says Pekka Tala, explaining the decision.

Automated and manual processes work together

Knapp’s solution is designed to integrate automated and manual processes into a single comprehensive system. A fully automated high-bay warehouse will be built for pallets. The Evo Shuttle storage system is to handle containers, cartons and trays with loads of up to 50 kilos in an automated small-parts warehouse. The shuttle system sequentially dispenses smaller containers and individual items, which staff will then pick at ‘goods-to-person’ workstations.

The mix of technologies is designed to create a flexible and scalable end-to-end solution that ensures efficient order fulfilment and reliable deliveries. It is geared towards future growth and is intended to lay the foundations for a continuous further development of Kesko’s logistics.

Micro-fulfilment centre already utilises warehouse automation

Kesko’s existing central warehouse in the Hakkila district of Vantaa, not far from Helsinki-Vantaa Airport, does not currently feature extensively automated intralogistics technologies. However, in January 2026, the company implemented Relex’s AI-powered planning software for inventory optimisation and demand planning.

In autumn 2023, Kesko, in collaboration with technology provider Dematic, set up a micro-fulfilment centre (MFC) at the K Citymarket in Vantaa Tammisto. This centre utilises a compact, automated warehouse and ‘goods-to-person’ order-picking system from manufacturer AutoStore.

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Joachim Pinhammer

Joachim Pinhammer supports retail and technology companies with consulting and marketing expertise. He was Senior Analyst and Research Director Retail Technology at the London-based analyst group Planet Retail. Prior to that, he was the global marketing director for the retail division of Wincor Nixdorf (now Diebold Nixdorf). Joachim Pinhammer is a regular speaker at events organised by Messe Düsseldorf (EuroShop and EuroCIS), the EHI and further industry conferences. His reports are regularly published by trade magazines and online retail industry media.

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