A shared vision and commitment help with drawing up an efficient procurement strategy

Typically, procurement makes up approximately 60–80% of the company’s turnover. Yet, it is regrettably rare that the importance of a seamless procurement process is acknowledged. When it comes to customer projects, it is often evident that the company’s management lacks a sufficient view of the current state of procurement, there is no regular reporting, and procurement […]

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Novitek

Incredible growth and procurement management!
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“Demand for outdoor hot tubs has increased enormously, and our business has grown at a huge rate.” We have continuously increased our production, and now we decided to outsource our procurement to ValueSource. We got instant help, and our development journey is now in full swing.”
Sami Kettunen
CEO, Nordic Spa LTD Oy

NORDIC SPA LTD OY

  • Based in Salo, Finland, Nordic Spa manufactures the Novitek outdoor hot tubs without compromising on quality
  • Nordic Spa’s turnover was MEUR 12.02, and its result from the financial period was EUR 919,000.
    The turnover increased by 95.6%. The operating profit margin was 10.2%.
  • The growth has continued in 2021. The global component shortages have only slowed down the growth, not prevented it.
  • For more information about the ValueSource consulting services, please contact:
    Matti Torkkeli
    Tel. +358407478304
    matti.torkkeli@values.fi

The start and starting points of cooperation

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.

Cooperation roles

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.

Results

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.

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