Meteoric growth, which puts the whole supply chain under enormous pressure. We chose external experts to quickly bring our procurement to the next level. Procurement makes up approximately 50% of our turnover, and our procurement costs are increasing parallel with our operations by nearly 100% annually. Due to the global pandemic, the role of procurement is now to ensure availability and firefighting. Our suppliers have been extremely well looked after and the relationships are long-term relationships—which has been enormously helpful during the pandemic. At the start, it was verified that procurement has remained partially in the shadow of production and sales. And so our goal was to bring procurement to a new level at the core of our operations, supported by consulting.
At the beginning, ValueSource’s procurement consulting identified opportunities for improving efficiency from the procurement and purchasing perspective, clarifying our operating methods, and utilizing our existing systems more effectively.
Nordic Spa’s key persons were involved right from the beginning with regard to management, procurement, sales, production, warehousing, and systems. And this was hugely important for our success.
As a result of internal cooperation and help from ValueSource’s consultants, we came up with an objective and comprehensive view of the current situation, which also provided clear and concrete development areas. By developing the identified areas and with ValueSource’s support, we have increased the role of procurement to support our business growth. And the cooperation continues because the development of procurement is steered by a chief purchaser recruited by ValueSource.