Purchasing

Nordic coordination ensures that the right goods are purchased at the right price – with guaranteed availability

Purchasing is key to the functioning of Alligo’s business model. Good knowledge and efficient processes enable Alligo to determine what to purchase and when.

Centralised purchasing in the Nordics

The ability to offer a Nordic standard range requires an organisation that works at Nordic level and is responsible for the offering on all geographic markets.

The Group’s Nordic assortment and purchasing organisation is responsible for Alligo having the right offering for customers and ensures a range that meets customers’ needs and demanding social, ethical and environmental requirements.

Purchasing process for own brands and external brands

Different conditions apply to the purchasing of own brands and the purchasing of external brands.

Own brands represent a large proportion of the range within the Personal protective equipment and workwear product area and are purchased mainly from suppliers in Asia.

The proportion of own brands is lower within Tools and Consumables, for example, and suppliers are based in Europe to a greater extent.

Focus on reduced stock levels while maintaining availability

The consequences of a pandemic and geopolitical challenges, for example, have increased the need for good monitoring and preventive measures in purchasing.

Alligo’s primary focus is on reducing stock levels without affecting availability. Sales forecasts for each country are used continuously to reduce the risks in the purchasing work and ensure availability.

Right supplier base

It is important to have a good balance in the number of suppliers and their share of the total purchasing volume in order to:

• mitigate risks in the flow of goods
• secure Alligo’s negotiating power
• enable responsible sourcing throughout the value chain

Consolidating the supplier base has been a priority since the merger of Swedol and Tools and the total number of suppliers has been reduced by around 50 per cent.

Buying from fewer suppliers means that Alligo can:

• establish stronger partnerships with better opportunities for control
• set enhanced requirements specifications
• negoitate competitive purchase prices