Purchasing strategy

Cornerstones of Kesko's purchasing - grocery trade and building and technical trade

The customer and quality – in everything we do 

1. Customer needs are a key factor guiding selections and purchasing
  • Kesko offers extensive, affordable and customer-oriented selections to K-retailers, consumers and business customers.
  • Kesko forms its selections based on the requirements of its divisions, and offers solutions that meet the needs of even the most demanding customers. Kesko actively introduces new products from both international markets and local suppliers to its selections.
  • The K-retailer entrepreneur model guarantees customer-oriented operations and the most inspiring stores locally. K-retailers tailor selections and services in their stores to fit local customer needs. 
2. Kesko concentrates its purchasing power on divisional basis
  • Purchasing has been concentrated to divisional commerce units which coordinate purchases.
  • Synergies between the divisions are sought through co-operation and the development of operating models as well as through the sharing of best practices.
  • K-retailers tailor their product selections and services to suit the needs of their customers, using their local insight and K-Plussa customer data. K-retailers’ own purchases complement Kesko’s divisional purchases.
  • Kesko’s indirect purchases in Finland have been concentrated to ensure efficiency.
3. Own brand products complement the selections of Kesko and K-stores
  • Own brand products are affordable to customers and offer an excellent price/quality ratio. They are purchased efficiently in large lots, which enables stable long-term sales volumes for the suppliers.
  • The safety of own brand products is ensured.
  • The Product Research Unit's laboratory monitors the safety and quality of own brand products and own imports in the grocery trade. All of our food product operations have a self-control plan in place, and the producers of our own brand food products are required to have international, GFSI recognised certifications that assure product safety. 
  • Own brand products for the building and technical trade are tested and certified in accordance with product group requirements, while ensuring the products meet demands set for the importer.
  • Operating models have been established for identified responsibility risks in the supply chain of our own brand products. Responsibility in the purchasing chain is constantly monitored and developed. The purchasing of products containing ingredients with significant responsibility risk is managed through sustainability policies.
4. Kesko and K-retailers value Finnish and local products in purchasing
  • In Kesko’s concentrated product purchases, we prioritise the operating country’s own suppliers if the quality, price and other terms of delivery are competitive.
  • Finnish products are chosen for the Pirkka range if they meet the criteria for quality and price. 
  • K-retailers’ own purchasing considers products by local suppliers when establishing selections that take into account store-specific customer needs.
5. We ensure cost-efficiency and affordable prices for customers by utilising data-based purchasing and versatile purchasing channels
  • Selection planning and customer price targets are based on researched customer needs, market prices and sales data.
  • Logistical costs of purchasing are minimised by selecting the most efficient order method and by optimising delivery amounts and frequency and the logistical operating model in the supply chain.
  • We use multiple purchasing channels and tools in an effort to make purchasing economic, efficient, responsible and customer-oriented. We also utilise e.g. international purchasing alliances, electronic bidding, direct purchases from product manufacturers, and local sourcing by retailers.
  • Kesko seeks partnerships with suppliers by building responsible long-term cooperation and supply relationships.
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