This is how Inwido creates purchasing power

With size comes strength. By coordinating purchases, significant savings are created for the Group's 28 business units. Thanks to Group overview and continuous improvements, purchasing synergies are created while Inwido inspires suppliers to increase sustainability work.

Each year, Inwido's business units purchase goods and services for approximately SEK 3.5 billion, of which SEK 2 billion concerns material purchases from approximately 700 suppliers, central for the production of windows and doors. The largest categories are wood, aluminum, glass, fittings and paint supplied from various suppliers in mainly Europe. For example, about 25 percent of the goods come from Swedish suppliers, a large proportion of glass comes from Poland, wood from, among others, Sweden, Finland and the Baltic States and fittings from Germany, among others. Through close group-wide collaborations with suppliers in combination with local sales, production and logistics, higher internal efficiency is achieved. By constantly seeking common opportunities, ideas and economies of scale can be disseminated to all business units within the Group. This means that the Group companies become more profitable and more efficient with Inwido in the back, than if they were completely independent.

Purchasing Strategy

Inwido's purchasing strategy never rests. By contributing on a daily basis to evaluating, tuning and improving both the group-wide and local purchasing work, "best practice" in the Group is ensured. The result is the lowest total cost, improved working capital and, not least, significantly shorter lead times and lower risk in supply of goods.

Savings, quality and profit improvements

The goal of the Group-wide procurement work is to reduce procurement costs annually, while at least 97 per cent of deliveries, which is on or above customers' requirements, must be done at the appointed time and in accordance with the zero-fault principle. All in all, strategic procurement work contributes to significant improvements in the business units income statements and balance sheets.

Purchasing synergies in acquisitions

In addition to the continuous supply of goods to Inwido's 28 business units, a structured working model is also applied in the Group's purchases in acquisitions. During the acquisition process, the target company's procurement work is examined and analyzed to find synergies that are then implemented in the subsequent 100-day program. In Inwido's last five acquisitions, the cost savings for the larger category purchases amounted to approximately five to ten percent on the acquired business units purchasing volume.

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