Running an e-commerce business constantly presents new challenges. For Tim Nilsson and Adrian Södergren, the journey began by helping e-commerce businesses build their digital presence and sales through the web agency Alt Tech. But they soon noticed a pattern in customer needs that would redraw their entire business plan.
It actually came through our customers. Gradually, they started asking if we could also help them with warehousing, order management, and logistics. When the same type of question started coming from several sources, we realized there was a real need,” says co-founder Tim Nilsson.
They quickly realized that their geographical location gave them an unexpected and powerful advantage over competitors. Warehousing costs in Västervik were significantly lower than in Stockholm and other major metropolitan areas, allowing them to offer e-commerce businesses attractive prices and large spaces combined with personal handling.
That's when we understood that warehousing and logistics would not only become an additional leg, but could develop into our main business. We never saw it as abandoning what we had built, but rather as a natural evolution of the company. Our background in web, IT, and sales has been a great asset even within logistics,” says Tim Nilsson.
Grew during the height of the pandemic
The transition to a full-scale third-party logistics provider happened gradually, but it was far from a straight path. The company took the leap in the midst of the raging Covid-19 pandemic, at a time when the world was characterized by deep uncertainty.
The toughest part has been building the business organically while needing to stay one step ahead. In logistics, premises, personnel, systems, and capacity must be in place before all volumes arrive. This means that you sometimes need to take costs and make decisions before you know exactly how quickly the next step will come,” he explains.
Despite periods of doubt about the timing, they stuck to their core idea. They found security in the fact that growth was driven by real customer needs rather than temporary trends or massive external capital injections. But as the company grew, the first real obstacles also appeared.
In the beginning, we were sometimes too quick to say yes to special solutions without fully calculating how much time and administration they required. We wanted to solve everything for the customer, which is a strength, but we have learned that flexibility must also be combined with clear processes and correct pricing,” says Tim Nilsson.
Today, Alt Tech places enormous focus on the onboarding phase. Product data, order patterns, returns, and customs requirements are mapped in detail before a new customer is released into the system.
Our most important lesson is not to try to grow faster than quality allows. In logistics, trust is crucial, and then every step of the expansion must be sustainable,” he states.
Star-studded customer portfolio
The careful strategy has yielded results. Today, Alt Tech boasts an impressive and rapidly growing customer portfolio. One of the first major breakthroughs was the Stockholm-based brand Glacial Bottle, which paved the way for a larger network. Soon, medical technology company GetTested joined, where Alt Tech now manages the entire logistics chain and ships products to around 80 countries.
Among its customers are also the coffee company Coffydoor, which is strongly associated with Spotify founder Martin Lorentzon, and the ski brand Stolt of Sweden Ski Group.
Getting the trust of a company linked to Martin Lorentzon feels very fun and is a confirmation that the business we have built is at a high level. At the same time, we have learned that when you ship to 80 countries, situations that require problem-solving will always arise. An error in an address, customs declaration, or a packing step can have major consequences further down the chain,” says Tim Nilsson.
Plenty of room for the future
To handle the growing volumes, they use advanced systems and AI to analyze information and minimize manual processes. All of this takes place from Welux Företagscenter in Västervik, a gigantic property of approximately 30,000 square meters with a generous ceiling height.
Here, Tim Nilsson and Adrian Södergren run the business together with their team, where warehouse manager Ludvig Heinz recently stepped in as a partner. And if the business needs even more space, there is no shortage of it. Adjacent to the property, there are 120 hectares of available land for future expansion.
The financial figures also hint at a business that has found just the right path. During the latest financial year, net sales soared by 57 percent to SEK 4.6 million. At the same time, operating profit doubled to SEK 1.1 million.
The next major milestone is to bring in a few more major customers and continue to scale the business without losing the personal service that has been an important part of our success. Our ambition is not to become an anonymous warehouse where all customers are squeezed into the same model. We would rather grow long-term with the right customers than chase turnover that does not create sustainable value,” concludes Tim Nilsson.