Purchasing process for Axfood’s private label products
Axfood’s purchasing process for its private label products ensures high-quality products. We make conscious choices with responsibility, quality and price in mind. The assortment is quality-assured through our own and external controls.
Axfood has ambitious goals for the assortment offered in its store chains. Our private label products must give customers clear value-added, be produced with care for people, animals and the environment, and at the same time they must offer customers value for their money. To succeed at this Axfood has a painstaking purchasing process.
Here’s how Axfood’s private labels products are developed:
1. Axfood decides to add a new product to its private label offering.
This is where we set the degree of quality. Will the new product give customers special value-added, such as through a KRAV, Fairtrade or some other form of sustainability marking? What kind of taste are we looking for, and will the product have a specific fibre or meat content? Where will the ingredients come from, and what ingredients can the product contain or not contain?
2. Axfood invites a number of suppliers into a tendering process for the new product. The suppliers submit product documentation and samples in accordance with Axfood’s purchasing guidelines.
To be a supplier of Axfood’s private label products, the producer must meet Axfood’s standards. The most important requirements concern food safety, quality, working conditions and environmental considerations in the supply chain, and animal welfare.
3. Axfood tests the product samples and selects three or four suppliers to move forward with. These chosen suppliers make adjustments to their product samples in accordance with Axfood’s preferences.
The samples are tested, and accompanying product and content specifications are evaluated. Sometimes we find just what we are looking for, but oftentimes the products need further adjustments and fine-tuning before we are satisfied and can move forward.
4. Axfood tests the product samples again. Mid-range and value-added products are tested by a consumer panel, which rates the products.
Internal test panels are used for sensory tests of taste and smell. In addition, Garant and certain mid-range products are tested by an external consumer panel of 60 persons to ensure that we have found what we are looking for and can launch a new product that customers appreciate.
5. Axfood finally selects the supplier, makes final negotiations and signs an agreement detailing both the commercial terms and its requirements for compliance with Axfood’s Code of Conduct.
In this stage the package design is also created, including the accompanying content declaration and nutritional information. The product’s packaging must meet tough requirements in order to work from production via the warehouse to store shelves and finally into customers’ shopping carts. Environmental considerations are always in focus in our choice of packaging, especially for organic products.
6. The supplier delivers the products to Axfood’s purchasing organization, which distributes them onward to Axfood’s chains and stores.
A fine and delicious new product is now available on our store shelves, ready to buy and be taken home by our customers!
Many steps have now been taken from original idea to finished product in our stores. Once the product is displayed on store shelves we can feel confident that we are offering a decent and attractively priced product bearing one of our private labels.