Managing supplier network

In 2014, VR Group purchased goods and services worth more than EUR 620 million.

VR Group has about 2,000 regular suppliers of goods and services.

The number of supply chains is higher and they follow the logic of different business operations. In all supply chains, most of the goods and services are purchased for own use to support the services offered.

The most important supply chains involve the rail rolling stock with its spare part and support service needs, infrastructure engineering with its material and service needs, energy purchases, and the needs concerning VR personnel and premises. The needs of road traffic in the field of subcontracting, vehicles, spare parts and services play a smaller role.

In 2014, VR Group purchased goods and services worth EUR 627.7 million. The breakdown of the purchases by business division and type of cost was as follows:

Most of the suppliers are based in Europe

Some 98 per cent of all suppliers are based in Finland and in other European Union countries. The largest 308 suppliers come under supplier management and their operations are monitored on a centralised and regular basis. The largest suppliers account for slightly over half of all purchases.

The suppliers are divided into three monitoring categories. In 2014, supplier monitoring resulted in 103 risk analyses and 72 self-assessments. The aim is to have a monitoring coverage of 90 per cent in 2015.

By seeking an invitation to take part in a competitive tendering process organised by VR, by submitting a tender in response to an invitation to tender or by entering into a contractual relationship, a company also commits itself to comply with the VR Group ethical guideline on purchasing. The guidelines apply to working conditions, environmental protection and other similar standards. The suppliers also pledge that their supply chains comply with the ethical guideline.

A total of 24 competitive tendering processes for EU-based suppliers were finalised during the review period. There were also a total of 86 other competitive tendering processes. VR Group also concluded a total of 357 new or revised contracts during 2014.