KONE collaborates with more than 30,000 suppliers worldwide. How do these partners help in shaping the future of cities?
We work extensively with a range of suppliers, sourcing both direct materials for our products and indirect materials and services such as consulting, machinery, installation, and maintenance. Purchasing accounts for almost 60 percent of the company’s revenue.
Our job in Purchasing is to support the business and do our best to ensure operational excellence. KONE relies on its vendors to be able to respond to our customers’ demands. Suppliers help us build smooth urban lives, while we can give them visibility on business needs and how we see the elevator and escalator industry evolving around the world.
We invest in long-term relationships with our partners – when we work with our suppliers, we want to make sure we’re building a future together.
* Total Cost of Ownership (TCO) Performance refers to how effectively an organization manages the complete cost of acquiring, operating, and maintaining an asset or system over its entire lifecycle.
Before joining KONE, you worked in various industries. How does Purchasing in the elevator and escalator industry differ from your previous experiences?
I see similarities in all manufacturing businesses, even though products and company cultures differ. For example, compared to the automotive industry, the main difference is that after buying a car, customers only operate with the car manufacturer during the warranty period and then turn to dealers or repair shops. At KONE, it’s different; we want to secure the service part of the business as well, including spare parts, maintenance, modernization, and everything the customer needs.
This is KONE’s added value: we do the service, and we know our products – we even know our competitors’ products. We can take an older generation elevator, upgrade it with the latest technology and provide a completely new experience.
What does it take to build successful partnerships with suppliers, and do you have personal leadership views on maintaining them?
Our Purchasing team operates worldwide. It is crucial to have dedicated people working with suppliers globally and locally.
Quality and safety come first in our products and services, and the purchasing team needs to stay ahead of the business to find the best partners. My job is to protect the company, which means setting high expectations for our suppliers to enable business success and customer satisfaction – ensuring we get the best quality with on time delivery at the most competitive cost.
At the same time, it is important to treat our partners fairly. I don’t believe in focusing solely on cost killer approach – this is not a sustainable strategy for KONE. We want our partners to succeed in their business. In the end, we all win together.
Does KONE collaborate with partners to drive sustainability?
We take sustainability very seriously in Purchasing, as we as a company won’t be able to reach our sustainability targets without our suppliers’ efforts.
Our Purchasing experts are working hand in hand with our global sustainability team to monitor the sustainability aspects of our partnerships. We also have a dedicated supplier management team to ensure that our suppliers comply with all our standards, including Code of conduct and Supplier charter, which reflect our overall values. Any ethical violations on our partners’ side will lead to an immediate end to the collaboration – anything else would not be in line with our company values.
It is in the best interests of all parties to have clear goals for sustainability and social responsibility. That way, we can reach the highest standards together.
How would you describe KONE’s culture?
The culture is one of the main reasons I joined the company. The way KONE operates aligns with my personal values – I wouldn’t be able to do my job if it were not so. Our caring and collaborative culture includes having open dialogue with people. Everyone is welcoming and easy to approach, all the way up to the board level. This is also my style of leading: being caring and fair while expecting results.
What excites you most about the future of urban mobility and the role of elevators and escalators in cities?
Our role is to help people move safely and effortlessly and make their lives more comfortable. KONE is there for people, helping them to get where they want to go, whether in airports, shopping centers or high-rise buildings.
However, it goes beyond comfort – we are making major innovations with digitalization, and our elevators can be equipped with the latest technology. For example, together with building owners, we can monitor when people are using the elevators and adjust heating and air conditioning accordingly. In some cases, we have estimated a 30 percent reduction in energy use.
I’m thrilled to be part of KONE’s journey. I know we can improve people’s lives while building modern and sustainable urban environments together with our partners.