Building the Bigger Picture
Cooperation in the supply chain
In Finland, Destia operates nationwide and we work with thousands of suppliers. Our procurement operations are mainly with local service providers. According to the feedback we receive from stakeholders, Destia is considered a major local employer.
Destia implements projects using its own fleet and equipment and its expertise, while using a wide range of subcontractors. Materials are mainly procured from external operators, and only aggregate is produced by Destia itself. The supply chain depends on individual projects, and deliveries often come from local, skilled subcontractors. Of the materials, aggregates are typically acquired from places close to projects. Destia’s purchases as a whole are 263.4 (268.6) million euros. Due to the nature of Destia's work, for us Finland is an area of local purchases. Some of Destia's supplies also come directly from foreign suppliers. In 2014 of all the purchases, 2.9 (1.9) per cent came from foreign suppliers.
The partnerships of "Destia's Designated Partner" form a network of collaboration in which Destia supplements its expertise and enhances the efficiency of project implementation. Our partnerships allow us to ensure top quality outcomes for customers effectively. In 2014 several dozens of "Destia's Designated Partner" partnerships were agreed, and the network continues to grow.
The procurement process adheres to Destia's values, ethical guidelines and the principles of fair competitive tendering. Products and services that are remarkable in terms of volume Destia acquires centrally. We require from our partners skills and a willingness to comply with Destia's operating models and safety and environmental regulations. The law and statutes lie at the heart of everything we do.
Foreign suppliers of materials are evaluated and production plants and areas are inspected before contracts are entered into and while they are in effect. Examples of materials and products include various steel products and road salt to prevent slipperiness. The manufacturing of products or materials and the operations of production plants are frequently monitored by a third party.
Prevention of the grey economy
Destia complies with Act on the Contractor’s Obligations and Liability when Work is Contracted Out and requires its suppliers to fulfill the obligations defined by law. The authorities and companies refer to the Act to prevent the grey economy.
In its service procurement contracts, Destia requires its suppliers to be registered with the Tilaajavastuu.fi (Customer Responsibility) service. This makes it easier to check, document and monitor the obligations that suppliers have under the Act. We also require them to meet the obligation to provide notifications and reports in the construction industry. Destia also requires its foreign service providers to supply the same reports and information under the law and regulations that it expects from its Finnish suppliers.
CE certifications for construction products
July 2013 saw the legal introduction of compulsory CE certifications for construction products in the industry. The certification is used by manufacturers to state a product's properties in a way that is consistent with the European practice. For Destia, the CE certification is important for both the products it purchases and, for example, the aggregate that it produces.