Why are spare parts and accessories for cars so expensive? That question started the unique journey that is Biltema. The founder Sten Åke Lindholm set it up over 50 years ago. Even at that time, car manufacturers used the margins on service, spare parts, and accessories to compensate for the price pressure on car sales. Thanks to the realization that this could be handled in a different way, Biltema currently has 140 department stores in Sweden, Norway, Denmark, and Finland. Showing that great results can come from asking a farsighted question.
Today, CEO Leo Shahandeh and his colleagues in the company management continue the work of offering smart and affordable alternatives in spare parts and accessories. The number of products sold is over 25,000. By taking control of the entire chain from production to sales from the very beginning, Biltema was able to fulfill its customer promise ”to offer quality goods at a good price”. With an organization and workflow that ensures transparency at each stage, Biltema has been able to do without many intermediaries and have an impact on how production is carried out.
Close relationships with and direct purchases from manufacturers have thus been part of Biltema’s strategy from the outset. That work began by building purchasing offices around the world and has since developed into a continuous close collaboration. Today, Biltema has a clear focus on sustainability, and this has meant that much of the collaboration revolves around both manufacturing and the use of recycled materials in manufacturing and increased investment in the circular economy.
Biltema is at the forefront also when it comes to controlling the entire supply chain. Through the subsidiary Biltema Logistics, deliveries are made to all stores in the Nordic region. Biltema has also been quick to develop an omnichannel perspective in addition to physical and digital sales. For example, with a Pay & Collect service that makes it easy for customers to pick up their goods.
We want to highlight how Biltema in a very efficient way both offers a huge range and ensures that it reaches the department stores as an outstanding example of what is required to succeed as a Manufacturing Retail Hybrid.