The e-commerce retailer Nordic Nest sells Scandinavian-designed home furnishings in 70 countries. Following its acquisition by BHG Group AB, the company is now investing in the automation of its logistics center in Kalmar using the AutoStore robotic system from Element Logic. The goal is to achieve scalable logistics and lower operating costs.
Nordic Nest was founded in 2002 in Kalmar under the name Designonline but changed its name in 2019. The company’s home decor products are sold through 13 online stores in 12 languages across 70 countries—including the Nordic countries, Germany, and South Korea. The company’s product portfolio consists of more than 450 premium brands and approximately 55,000 unique products.
Acquisitions and Automation
In 2020, the company fulfilled one million orders for approximately 700,000 customers. That same year, it was acquired by BHG Group AB (publ), which purchased 97.6 percent of Nordic Nest Group AB. Since May 2021, Svenssons in Lammhult has also been part of the Nordic Nest Group. Nordic Nest is based in Kalmar, where it also has its headquarters and logistics center, from which the majority of its distribution operations take place. Following the acquisition, the company decided to modernize and digitize its logistics center using the AutoStore robotic system. The logistics setup currently being implemented will serve customers of both Nordic Nest and Svenssons in Lammhult.
– At Nordic Nest, we operate based on three clear pillars: creating the world’s best customer experience, building the world’s most motivated team, and running the world’s most profitable retail business. We’ve already done a fantastic job, and up until now, we’ve done it using manual processes. “Before we invested in automation, we first wanted to reach an order volume that could support the investment in AutoStore, and now we’ve gotten there,” says Bank Bergström, CEO of BHG & Nordic Nest.
Lower operating costs and a motivated team
Element Logic’s intralogistics experts have evaluated various aspects of the operation, such as ROI calculations and payback analyses, to develop a customized warehouse solution for Nordic Nest’s current and future warehouse automation needs.
The AutoStore robotic system enables increased order capacity, improved material handling, and faster delivery speeds. Nordic Nest’s installation of AutoStore is the company’s first step toward an automated “goods-to-person” warehouse operation. The goal is a scalable logistics system that can be expanded in line with customers’ changing needs. At the same time, Nordic Nest will reduce its operating costs, save space, and create a more ergonomic workplace.
– We’re now at a stage where AutoStore will really help us by enabling faster deliveries, higher order volumes, an improved work environment, increased efficiency, and better long-term cost efficiency. “Our initial installation is relatively large, and we also have the floor space to double our AutoStore capacity down the road, even though we prefer to take things slowly,” says Bank Bergström.
– This is our third AutoStore project in Kalmar, where development is moving quickly thanks to a vibrant entrepreneurial community. “It’s a wise decision by Nordic Nest to invest in an AutoStore warehouse as they continue to grow—one that takes efficiency to the next level while remaining scalable for the future,” says Thomas Karlsson, Managing Director at Element Logic Sweden.
Nordic Nest's Autostore solution will consist of 60,000 bins and 112 robots, and it will go live in the fall of 2022.
