Flexible supply chain

The Group's operations are characterized by substantial seasonal variations. Park and garden products are manufactured and sold mainly during the first half of the year, while production and sales of forestry products are usually somewhat higher during the second half of the year. To be competitive, it is essential to provide timely supplies and high supply reliability to customers.

High demands concerning speed and flexibility mean that a major part of production resources have to be located close to the customers - in North America and Europe. The relatively short sales period places considerable pressure on the ability to increase or reduce activities in the entire supply chain at short notice. Flexibility is key.

Optimized production structure

In order to enhance the efficiency and flexibility of production, ther must be fewer, larger and more cost-efficient production facilities. When the restructuring initiative is completed, a total of 9 facilities will have closed, and one new facility established. 

New production facility in Poland

The new facility in Poland, was gradually placed on stream in 2011. The facillity was built to meet high demands for scalability, flexibility, quality and cost-efficiency.

Increased purchases from low-cost countries

Purchased components are the Group's largest cost item. A growing share of components is purchased from low-cost countries. A global sourcing organization creates opportunities to considerably increase the share of component sourcing from low-cost countries.

Fewer suppliers

A reduction in the number of suppliers, entails opportunities for lowering the inventory level, improving supply reliability and generally creating a more efficient logistics structure.