Our clients are mainly Finnish companies within mechanical engineering industry. The companies employ 140 000 people and their joint turnover is 30 billion euro. The value of purchases of these companies has for years been more than 50 % of turnover, and this percentage is constantly rising. In a global economy, it is vitally important that a company’s cost structure is at a globally competitive level. Large Finnish companies have partly been able to utilize sourcing from low-cost countries, but only few small or medium-size enterprises have been able to do this.
The need to reduce purchase costs impacts the entire value chain, including the product owners as well as the subcontractors. Finnish subcontractors are increasingly turning into system suppliers and strategic partners of the products owners. These “system suppliers” do not by themselves manufacture simple semi-finished products or components, but purchase these items from the sources which can offer the most competitive price.