Flexible and efficient business model with limited capital tied-up
Doro offers seniors, easy-to-use telephones designed to meet their needs. Production and logistics are among other functions outsourced to efficient partners making our business cost and capital efficient and easy to adapt to changes in demand. This allows us to grow at attractive margins.
With an indepth knowledge of the target group, which we continuously maintain by means of studies and coordination with experts and representatives of the target group, Doro applies its own resources to develop and design telephones that offer value for money. To gain cost-efficient access to the latest technology, which naturally we adapt to our target group, we also establish cooperative partnerships with leading technology companies. We also have our own competent marketing organization that is continuously developing a global distribution network and that provides services, support and guarantees. The network consists of well-known operators and retailers working closely with consumers and is able to efficiently penetrate its respective markets and reach end-users – seniors.
Outsourcing for cost efficiency and flexibility
Staying one step ahead of our competitors requires access to the right technologies, production resources and logistics. We have therefore chosen to outsource these functions as well as certain aspects of administration. In this way, we minimize our overheads, which grants us the flexibility to quickly adjust our resources to our development and current market situation, thereby protecting our margins.
All production is carried out according to Doro’s specifications. In recent years, Doro has however outsourced its production to a limited number of suppliers in China even though we are starting to use European ones for some categories of products. Decisive in the selection of manufacturing partners is that they are able to maintain production in accordance with Doro’s requirements. Combined with extensive procurement expertise and contingency planning, these partnerships ensure reliable deliveries. Our manufacturing partners are continuously followed up through regular inspections that cover six key areas in particular. The results are documented in a Supplier Score Card and are mainly used to help suppliers improve their operations and, by extension, Doro’s. Over the year, the processing of the database Doro quality web was refined, which will significantly further enhance our opportunities to improve performance.
Systems to maximize efficiency
Our business model imposes considerable demands on increasingly enhanced production planning and component supply. We therefore apply a Group-wide business system that, together with a product database, facilitates purchasing and planning. Through the standardization of certain components, such as adapters and boxes, we have also been able to enhance the efficiency not only of the production process but also that of the logistics function.
Flexible and cost-efficient logistics
Due to larger volumes, more versions and shortened leadtimes, an efficient logistics function is increasingly important. To minimize costs, we work both with direct deliveries to major customers, as well as with central warehouses. For products with ever briefer life-cycles – although not as brief as those of traditional mobile phones – we must also be able to quickly deliver to the markets where demand exists while taking into account the requirements, preferences and regulations that can vary between countries.