Volvo 2008 Annual Report Download - page 19

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solutions can be customized for each cus-
tomer. In many cases, the Volvo Group is the
forerunner in terms of developing new and
attractive overall solutions to simplify custom-
ers’ operations.
Since a large part of the accessories, spare
parts and services in the aftermarket business
is requested as long as products are being
used, they contribute to balancing the fl uctu-
ations in the economy. By strengthening the
aftermarket offering, profi tability and revenues
sustainability for the Group throughout the
entire economic cycle can improve.
Develop and increase interface
with customers
The majority of Volvo Group’s customers are
companies within the transportation and con-
struction industries. The Group’s products are
vital and highly crucial to their success and
profi tability.
The goal is that Volvo Group companies are
regarded as number one in customer satisfac-
tion, in terms of both products and services.
Tony Helsham, new
head of soft products
development
Sales of soft products
are a high-priority area
and increasingly more
signifi cant for the Volvo
Group. In September,
Tony Helsham was appointed to the new position as
Senior Vice President responsible for the Group’s
efforts to increase sales of soft products. Tony Hel-
sham was previously President of Volvo Construc-
tion Equipment.
“Our ambition is, over the business cycle, to
increase the sales of soft products much faster than
the sales of our sole new machines, vehicles or
engines,” says Tony Helsham.
Focusing on soft products is the best way to
strengthen the ties with customers and increase
their satisfaction and loyalty. “But it requires signifi -
cant efforts to understand the customers’ opera-
tions, translate that knowledge into specifi cations
covering the complete lifecycle of our products,
develop and fi nally deliver products with built-in
serviceability”.
For example, the machines from Volvo Construc-
tion Equipment are designed to increase productiv-
ity for work involving the most challenging types of
terrain, and at any conceivable construction site.
Tony Helsham confi rms by experience: “To ensure
that the machinery is optimally utilized, an increas-
ing number of customers are purchasing service
contracts tailored to suit their particular require-
ments. In addition they are asking for our CareTrack
telematics solution to get remote access to informa-
tion on the real time performance of their
machines.”
Today, many of the Volvo Group's customers are
expecting their suppliers to come up with solutions
securing and improving the profi tability of their own
operations. “We have a complete portfolio of prod-
ucts and services to offer and we need to increase
our ability to combine them in the best interest of
our customers, together with them and better than
the competition,” concludes Tony Helsham.
IT Services
Used
vehicles and
equipment
Remanufacturing
Aero spare
parts sales Consulting
Training
Logistics
services Research and
advanced
engineering
Real estate
services
Merchandise
The Volvo Group must also be number one
when the dealers’ customers assess customer
satisfaction. The strength in the dealer and
service network is vital to the Volvo Group and
contributes to strengthening the Group’s vari-
ous brands.
The development of new services and prod-
ucts is driven by customers’ demands for
access to vehicles and machinery that are
rarely affected by unplanned stoppages and a
competitive total cost during the product’s
entire service life.
Vital element of growth strategy
The strategy to increase sales of soft products
is an important element in the Volvo Group’s
effort to achieve targets for profi tability and
growth, both in mature markets and in the
Group’s new markets. During 2008, products
and services in the aftermarket business rep-
resented approximately 26% of the Group’s
total sales, and the portion is expected to grow
further in the years ahead.
Credit cards, Vehicle and equipment insurance.
Customer and dealer fi nancing
Transport
and vehicle
manage-
ment
Accessories
Rental
Super structures Parts Workshop
services
Customer
assistance
Repair and
maintenance
agreements
Attachments
Financial services
A global group 2008
15