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01 December 2006

Electrical goods supplier has to be able to adapt its business parallel with the customer's objectives

Sonepar Finland

These were words from logistics director Tutu Wegelius-Lehtonen, SLO’s customer, who is in charge of sourcing at the largest Finnish building and maintenance company, YIT Corporation. "In addition to excellent product management, key areas also include well functioning logistic concepts and advanced electronic business solutions", she says.


YIT's business is divided into three sectors: building systems, construction services as well as industrial and network services. Main market areas are the Nordic countries, the three Baltic countries and Russia. The company's turnover was 3 billion euros last year and it employs over 21 000 people. YIT's strategy is to boost its construction services in the Baltics and Russia, building system services both in the Nordic and Baltic countries and to strengthen industrial and data network services in YIT's entire market area.

"Two years ago we began refocusing the company's sourcing, the objective being overall cost-efficiency with the chosen supplier network. Electrical wholesalers had their turn in our reviewing process also", states Tutu Wegelius-Lehtonen. In her words, one of the main criteria when choosing suppliers – along with traditional price competetiveness – is supplier's ability to produce services that are compatible with YIT's strategy.

In my opinion, SLO's particular strength lies in the company's willingness to do and develop matters in novel ways to match our objectives. Together we strive to create a uniform way, that is as flexible and cost-effective as possible, to manage business operations in dozens of outlets all over the country.

YIT and SLO already have a framework agreement on electrical goods, inclusive of stocking and delivering services. Complementary to this is the recently signed goods management agreement on YIT's fleet of maintenance vans, a service car for electrical installations. The driver of the car is a professional electrician who does the installations on various job sites. "As per the new agreement, SLO shall be responsible for the supply of the fleet's basic electrical product range as well as their continuous replenishment. Nonstop monitoring data on demand levels helps to optimise the maintenance fleet's mobile product selection. Purchasing goods shall be primarily done using SLO Online -service. Main ideas behind this maintenance fleet goods management are the simplicity of the concept's dublication to the entire country as well as its cost-effectiveness", states logistics manager Janne Forsman when outlining details of the partnership. Mr Forsman is the person in charge of the project's practical implementation at YIT.

YIT and Sonepar share a market area. When asked whether the maintenance vehicle concept could possibly be copied elsewhere, director Tutu Wegelius-Lehtonen replies that one could always seek to benefit from a well-proven idea in new surroundings. "The deciding factor, above all else, is the potential partner's credibility – in other words, whether the other side can muster sufficient will and ability to do business for the benefit of our objectives", she emphasises.


Caption: In the picture, from right to left, parties in the YIT-partnership: logistics director Tutu Wegelius-Lehtonen, driver of a maintenance vehicle and electrical installer Henri Peltola as well as logistics manager Janne Forsman.



 
 
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