Business concept and business model

We make CarLife easier with a well adapted and affordable product range, combined with efficient distribution and high service.

Business concept
Mekonomen Group shall offer consumers and companies solutions for a simpler and more affordable CarLife by using clear and innovative concepts, high quality and an efficient logistics chain.

Business model
Our business model is simple and logical. High purchasing volumes combined with an efficient wholesale operation, well-known brands and concepts, full-range stores and workshops with well-trained personnel give us a distinct advantage in being able to meet and exceed our customers’ needs. The keywords are a well-adapted, affordable product range, combined with efficient distribution and a high level of service.

affärsmodell

Purchasing
Since 2014, purchasing has been a group-wide function with centrally negotiated purchases. The large volume enables purchasing directly from subcontractors to established car manufacturers.
The basic principle for creating the right product range is to achieve the highest possible coverage of parts and accessories at the best terms. The Group purchases around 75 per cent of the supply of products from 160 suppliers. To enhance the efficiency of product sourcing, a consolidation of the supplier base is under way from in many cases unique suppliers for each concept to fewer group-wide alternatives per part.
A large part of the purchases are made from Europe, but the Group also has a purchasing company in Hong Kong with local staff who know Mandarin Chinese and Korean. As the subcontractors accompany European and US car manufacturers when they establish operations in Asia, these high-quality suppliers are now present in Asia as well. This is important as we want to offer our customers products of high quality and affordability. This is particularly true of our proprietary quality brands ProMeister for spare parts and Carwise for accessories.

Logistics
In our industry, product availability is very important. A structure of efficient logistics solutions ensures that the right product is quickly available when it is needed in the local store, workshop or online store.
It is in product sourcing that the largest degree of efficiency enhancements can be made. In 2015, Mekonomen Group conducted a project to establish a group-wide PIM system (Product Information Management system). Decisions were also made to invest in a group-wide platform for all digital commerce. In total, these investments aim to increase efficiency internally at the same time that they increase the offering and availability and make it easier for the customer to order.
A large proportion of the products bought are first distributed to one of the Group companies’ central warehouses. MECA has a fully automated central warehouse in Eskilstuna, Sweden, that accounts for the product supply for MECA’s workshops and stores in Sweden and Norway as well as to Denmark. Approximately 55,000 items are kept in stock.
Mekonomen Nordic has a central warehouse in Strängnäs, Sweden, that accounts for the product supply for Mekonomen’s stores in Sweden, Norway and Finland. Approximately 67,000 items are kept in stock.
Sørensen og Balchen has a central warehouse in Oslo that accounts for the product supply to BilXtra’s stores and workshops in Norway. Approximately 60,000 items are kept in stock. Mekonomen’s and BilXtra’s stores deliver to workshops and over the counter to consumers. MECA’s departments deliver to workshops.

Sales
Mekonomen Group’s revenue is generated by sales of spare parts, tyres, accessories and workshop services. Sales to our franchise workshops, proprietary workshops and independent workshops mainly take place through our online catalogue. Sales to end customers: consumers, companies and organisations, take place in stores, workshops or over the Internet. In the future, e-commerce, regardless of whether it is to a B2B customer or to a B2C customer, will become increasingly important and today, the majority of the Group’s sales are already made by a digital transaction.

Centralisation of the wholesale operations in Sweden

In 2016 work began to centralise the two central warehouses in Sweden. The result will be a fully automated Group common warehouse in Strängnäs