Why I love Electrolux
August 16, 2016
Alex Short
1 minute

I love Electrolux… There I said it. It’s not just because they make my whites whiter and my kitchen floor sparkle  

It’s also not because of clever advertisements where pranks are played blonde haired girls called Johanna (I am soon to marry a blonde haired girl called Joanna).

It’s none of that. Rather, it’s the way the company innovates that inspires me most. While thumbing through the company’s annual report yesterday I came across a section entitled ‘Strategic Priorities’ it sits directly after the ‘CEO Statement’ at the pointy end of the report.

Within the strategic priorities section, Electrolux highlights that rather than taking a stubborn position on growth and best practices and enforcing this position with a sledge hammer, they believe that an “Ongoing dialogue with stakeholders helps us define and deliver on our promises and stay ahead of emerging issues”.

Sounds good right? Logical? So, I read on to learn that Electrolux defines it’s stakeholders as consumers, customers, investors, employees, government and suppliers.

Wait… SUPPLIERS? Yes you read it right!

When discussing the how suppliers influence the business’s strategic direction the Swedish home appliance maker highlights the following.

  1. Over the last five years, held workshops with representatives of OEM suppliers on our sustainability expectations and encouraged suppliers to set their own energy targets.  
  2. Initiated dialogue with the logistics industry in 2015 to set our transport target.
  3. Member of US Environmental Protection Agency-led SmartWay, with a commitment to reducing road transport-related emissions.
  4. Continued to collect supplier data (representing 80% of our OEM supplier spend) on energy and prepared to set energy reduction targets for 2016. Initiated discussions on water use.
  5. Launched discussions with suppliers to access safe, high quality recycled plastics, driving progress on materials.
  6. Participated in the BSR Clean Cargo initiative. We stipulate that Electrolux shippers must be members of the initiative.
  7. Launched a partnership with shipping company Maersk Line to improve sustainability performance by 2020.
  8. The Group is surveying carriers to evaluate their environmental performance. The result was included in the supplier-evaluation process in 2015.

What are you doing with your suppliers? Do they help to set your strategic direction? Would you like Electrolux to replicate your lounge room at your local dry cleaners?

Thirsty for more knowledge? Download our white paper on supplier innovation and learn how your suppliers can help your business achieve its goals.

Supplier Collaboration Procurements world

Alex Short is Founder of Old St Labs he is passionate about building the next generation of business software. He is recognised as one of procurements thought leaders.
One platform. Every device. All your commercial relationships.
Procurement blog posts

From arguing over cost savings to real delivering business outcomes. Our blog will take you there. Drop your email in the field below and we’ll keep you in the loop.


Join the conversation