ANNUAL REPORT 2003 INEX PARTNERS OY

INEX PARTNERS OY
The core task of Inex Partners Oy
is to provide effi cient, competitive
and profi table purchasing and logistics
services for the retail trade. Its
nationwide logistics network comprises
its groceries logistics centre at
Kilo, Espoo; four regional terminals
in Kouvola, Lempäälä, Kuopio and
Oulu; and a speciality products logistics
centre at Hakkila, Vantaa.
The implementation and development
of the product range management
process and the related system
continued in close co-operation
with customer chains and suppliers.
Based on its customer chains’ needs
and business ideas, Inex expanded
its range of fresh and processed food
products and non-food groceries by
10 per cent.
Inex continued to increase the
number of its own-brand products as
planned. Such products, which numbered
over 850 by the year-end, are
provided under three brands: Rainbow,
Daily and X-tra.
Inex intensifi ed its co-operation with
the pan-Nordic Coop Norden, especially
in the purchase of joint retailer
brands.
An image and data bank on Inex’s retailer
brands was published on Inex’s
website in March 2003. This service,
intended for industry experts and
consumers, contains an image as well
as basic product information on each
of the retailer brand products.
Inex participates in the development
of a national grocery data bank, and
has been involved in this work since
the project was launched. This database
will be rolled out in the autumn
of 2004.
Quality management was further improved
and enhanced throughout the
purchasing and supply chain.
A customer survey carried out last autumn
indicated that customer satisfaction
with Inex’s operations has improved
since the previous survey.
The volumes handled by Inex’s grocery
logistics continued to grow rapidly,
most signifi cantly in terminal
deliveries. The company upgraded
the operational model of its terminal
network in order to further improve its
customer chains’ competitive edge.
The availability of staff for logistics
centres was ensured by creating an
effi cient and effective recruitment
process.
The renovation project launched in
the mid-1990s at Kilo logistics centre
is now reaching completion. Operations
have continued in the centre at
full capacity throughout the project,
and the modern facilities have further
improved the quality and effi ciency of
operations.
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The Hakkila logistics centre adopted
a conveyor sorter in the summer of
2003. The new operating model,
which generates benefi ts for customers
and suppliers, has increased the
volume of terminal deliveries and
improved the effi ciency of speciality
products logistics.
Inex Partners Oy continued to maintain
and improve the physical and
mental well-being of its staff in line
with the former Vire project. These
activities are now managed by supervisors
as part of their everyday work.
In 2003, Inex Partners Oy successfully
grew its business activities, grocery
product volumes and sales continuing
to outperform market growth
rates. The company’s operations ran
smoothly throughout the year.
Inex Partners Oy’s net turnover
amounted to EUR 1,597 million,
showing a growth of 4 per cent. Processed
food sales increased by 3 per
cent to EUR 839 million and sales of
fresh food increased by 6 per cent to
EUR 457 million. Non-food grocery
sales came to EUR 263 million.
The average number of personnel was
2,015, showing an increase of 146,
attributable to the growth in volumes.
Inex Partners Oy performed well and
its profi t after fi nancial items exceeded
profi t targets.
The value of the Finnish grocery trade
is not expected to grow. In the present
competitive situation, the importance
of price as a competitive tool is emphasised,
requiring Inex and the other
trade operators to constantly upgrade
their operations. Inex’s prospects for
profi table business in 2004 are challenging.