Arctia is a leading provider of responsible maritime services, including icebreaking, fairway maintenance, and hydrographic surveying for Finland’s critical sea routes.
Key Results to Arctia
- A fragmented workwear and equipment portfolio was consolidated into a structured, manageable collection
- An updated supplier agreement aligned with current market pricing and requirements
- Significant annual cost savings across workwear, footwear, and protective equipment
- A highly automated online ordering solution for efficient order management and delivery
- A recycling model for seasonal workforce reduced unnecessary procurement
- Collaboration extended to additional sourcing categories
Starting Point
Arctia required a structured approach to updating its workwear procurement, covering approximately 420 employees and a seasonal workforce with varying needs.
Arctia chose to bring in external procurement expertise because of internal resource constraints, and ValueSource was selected on the strength of positive past experiences.
"Choosing ValueSource came down to their strong reputation. I had seen the company in action in earlier projects, and I knew this was a truly professional, well-run organisation," says Ari Koivistoinen, Group Procurement Manager at Arctia.
New Collections Based on Real Business Needs
Before approaching suppliers, the ValueSource interim procurement expert began by working with Arctia's own procurement department, HR, and occupational safety experts to review the workforce's actual needs.
The varied range of product lines was consolidated into a clear collection, including summer and winter jackets, trousers, base shirts, high-vis garments, and UV-protective shirts.
In total, 33 garment models cover roughly 80% of staff needs. Specialist requirements, such as merino wool base layers for divers, were left outside the collection to be ordered on a case-by-case basis.
Footwear and gloves were also narrowed to 18 safety shoe models and 26 protective glove models, covering all the requirements defined by occupational safety. The collection was also updated against safety requirements; for example, the visibility class of high-vis garments was raised from one to two.
Efficient Tendering Process and Quality Assurance
After defining the workwear collection and the requirements, the supplier approach began. The invitation to tender was sent to a total of twelve candidates, half of whom were new supplier candidates.
A price comparison was carried out on the bids received, comparing unit prices to current prices and calculating the spend impact based on previous consumption. In addition to the price comparison, the quality of the garments was verified in practice as well. Samples were requested from every brand, which Arctia's safety department tested and scored based on functionality and quality.
The contract template was sent along with the invitation to tender for supplier candidates' comments. The comments were reviewed with suppliers during the tendering phase, which significantly accelerated the final signing process – this way we avoided late surprises.
In the end, Arctia's existing main workwear supplier was found to be the best overall option, and they were also able to offer competitive pricing thanks to the consolidated collection and concentrated procurement. The collaboration then continued under a new, up-to-date agreement.
After the successful workwear project, the collaboration has expanded further.
ValueSource's interim procurement professional has continued at Arctia with the tendering of engine and household chemicals, as well as the tendering of building infra services professionals (HVAC, plumbing, electrical, and building automation) for facilities management. The collaboration has also led to new and updated supplier contracts that improve Arctia's contract coverage.
An Automated Online Store as a Bonus
As part of the collaboration, a new, highly automated online store was also built for Arctia. According to Koivistoinen, the key benefit has been the change in operating model, with the online store becoming a smooth tool for sourcing clothing, equipment, and other items.
"In our old operating model, new clothing orders were guided by printed catalogues and forms, where we ticked off the sizes we needed. In the end, a vessel might receive, say, five size-L garments with no information about who they were ultimately for."
In the online store, orders are routed directly to the supplier's central warehouse, where automation handles picking, packaging, and dispatch. Now every item arrives at its destination labelled for, and going directly to, the right individual.
"The online store has even started being used for food deliveries. When a vessel is at sea, the crew can place an order through the online store that then waits for them at the next port. Tools that have proven their value have been put to broader use this way, which has delivered considerable cost efficiency."
Results
The four-month workwear sourcing project delivered Arctia significant annual savings drawn from several sources:
- Purchase prices on the workwear, footwear, and glove collections
- Discount rates on products outside the core collection
- A workwear recycling model that removed the need to buy dedicated kit for every seasonal employee
- Cost efficiency and reduced manual work through the automated online store
"The collaboration has been seamless. The expert easily took the reins in the process and got to grips with Arctia's operations and needs very quickly. We had daily conversations, and the most important thing in our way of working together was that we spoke the same language from the very start," Koivistoinen says.
Alongside the financial savings, a notable change has been a clearer overall picture: the shift from ad-hoc purchases to a managed collection that is easy to maintain and backed by an up-to-date contract.
Koivistoinen warmly recommends ValueSource's service to other organisations facing similar procurement challenges.
"There's no point dwelling on it for too long when your own resources aren't enough. Through our collaboration, we realised that an interim procurement expert genuinely delivers significant value, and as a result, we've been able to apply this expertise in other areas as well," Koivistoinen sums up.