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KONE 2015 | SUSTAINABILITY REPORT
DELIVERY AND SUPPLY CHAIN
42
Quality, responsiveness, and efficiency are the
cornerstones of KONE’s supply chain. It covers
all of the actions and processes that lead up to
the delivery of KONE equipment to a customer’s
site. The chain ends when a customer accepts
an installation. Leading up to this, our job is
to ensure that the right items are delivered to
the right places at the right times throughout
all the phases of manufacturing, distribution,
installation, as well as in our suppliers’ processes.
We want to develop the best supply chain in
the industry, a goal that entails the continuous
analysis and improvement of the quality of
everything we do. As a part of these efforts,
we launched the 10x Better Supplier Quality
program in 2014. Through the program we aim
to define critical to quality parameters, improve
process control to ensure that the critical
standards are met, and then implement change
management practices, wherein each product
and process change is first approved by KONE
and then implemented in a controlled manner.
The program affects the daily work of thousands
of KONE employees and hundreds of external
partners in all direct material categories. In 2015
we extended the program, which is expected to
improve efficiency at factories and installation
sites, to cover logistic service providers as well.
In 2015 KONE started another supply chain
improvement program, the so-called 10x
Better Factory program, targeted at further
improving in-house production quality (Read
more in the quality section on p. 30–31).
Meeting customer needs
At KONE we believe in listening to customers.
Adapting our supply chain to meet the
different requirements of different customers
is one way we do this. Customers with
modernization projects for example, value
timely delivery in order to keep elevator
downtime to a minimum, while customers
with demanding high-rise projects require well-
planned and specified deliveries that seamlessly
integrate with the whole construction process.
AIMINg TO HAVE THE
INDUSTRY’S BEST
SUPPLY CHAIN
SUPPLY CHAIN
KONE aims to develop its supply chain to be the best in the industry. In
2015 we had 8 production sites for elevators, escalators and building
doors, 10 global distribution centers for elevators, and 5 distribution
centers for spare parts.
Around 4,500 people keep KONE’s supply operations running. The
operations cover new equipment production, modernization, and spares
supply. We also work closely with several material suppliers and logistics
service providers.
g4 INDICATORS RELATED TO SUPPLY CHAIN
g4-12: Describe the organization’s supply chain
g4-DMA: Purchasing Practises
g4-EN32: Percentage of new suppliers that were screened using
environmental criteria
g4-LA14: Percentage of new suppliers that were screened using labor
practices criteria