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Kingfisher starting to source goods from Eastern Europe over China

European DIY retailer Kingfisher is to begin sourcing some of its products closer to home.

The owner of stores such as B&Q, Castorama and Screwfix, which currently sources all of its products from China, said it “makes sense” to buy products from countries in Eastern Europe and Turkey.

Kingfisher’s group chief executive, Ian Cheshire, told SM the move is part of the company’s ‘Creating the Leader’ strategy. This growth plan includes a group sourcing approach, which will introduce offices focusing on negotiating deals with suppliers. The strategy will also include establishing low-cost ‘pop-up’ sourcing branches near sourcing operations.

“China remains a key focus of Kingfisher’s global sourcing strategy, but it also makes sense to have sourcing operations closer to our operating companies, as sharing our best product ranges becomes increasingly ‘business as usual’ under the Creating the Leader strategy,” said Cheshire.

“That means a greater focus on ‘near-sourcing’ products from Eastern Europe and Turkey due to proximity and the shorter supply chain, thus creating a more flexible, agile approach.”

Source : Gurjit Degun - Supply Management

30 October 2013
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