Sustainable development and responsible operating practices
The principles of sustainable development and responsible operating practices are a central part of Kesko's and its chains' daily activities. The trading sector is required to take responsibility for product safety and healthiness, and for the environmental and social impact of business operations. The results of responsible operations are reported annually in Kesko's Corporate Responsibility Report.
Efficient combination of retailer entrepreneurship and chain operations, and benefitting from economies of scale
A strategic objective is to efficiently combine K-retailer entrepreneurship and chain operations. The K-retailer entrepreneur implements the chain concept and is responsible for store management, customer satisfaction, the personnel and business profitability.
Kesko's efficient chain operations and joint processes provide support to retailers. Chain operations offer the retailer a joint business concept which includes chain control related to chain selection, pricing and marketing, and business management support. Joint chain operations carried out by retailers and Kesko are further enhanced by developing increasingly better tools and business models for the stores. The most important of these are regional and store-specific selections and pricing guidance as well as tools for customer relationship and store personnel management.
The function of Kesko's purchasing and logistics is to source and deliver products efficiently and at competitive prices. Purchasing is always target-oriented and based on plans. The aim is selections which serve customers best and at affordable prices, while responsible practices are applied. Logistics operations manage the whole supply chain efficiently and provide customers with an optimum on-shelf availability at the lowest possible costs.
Kesko participates in international purchasing cooperation in various product lines, which increases purchasing volumes and efficiency. The most important partnership organisations in which Kesko participates include AMS Sourcing B.V. in the grocery trade, tooMax-x in the building and home improvement trade, Intersport International Corporation in the sports trade, and Electronic Partner International in the home technology trade.
Work and productivity programme
Cost-efficient operations build price competitiveness and customer satisfaction in the retailing sector. Cost-efficiency is also a basic requirement for increasing Kesko's profitability and shareholder value.
The key objective of the work and productivity programme launched is to increase labour productivity in Kesko and the chain stores. The most important tools for improving productivity include enhancing personnel competence and management, and increasing the efficiency of operating practices.
Promoting the wellbeing of employees has become an increasingly important factor. A management model will be built and results measured to improve wellbeing at work. Several projects on work health promotion are underway, aimed at improving the working capacity and motivation of employees, reducing sickness and increasing the retirement age.
Electronic and automated processes
A project to automate processes and routines with the goal of improving cost-efficiency is underway in Kesko. Key areas in process automation include logistics automation projects, the forecasting systems and automated orders that improve the availability of products in stores, the adoption of electronic purchase and sales invoices, and the automation of financial management routines in the shared services centre of the Kesko Group.