Volvo 2010 Annual Report Download - page 23

the business cycle for the Volvo Group. By strength-
ening the aftermarket offering, profitability and rev-
enue sustainability can improve for the Group
throughout the business cycle.
The strategy to increase sales of services and
aftermarket products is an important element in
the Volvo Group’s effort to achieve targets for
profitability and growth, both in mature markets
and in the Group’s new markets. During 2010, the
services and aftermarket products business rep-
resented approximately 35% of net sales in the
Industrial Operations, of which roughly half was
attributable to spare parts and workshop services.
Develop and increase interface with
customers
The majority of Volvo Group’s customers are
companies within the transportation or construc-
tion industries. The reliability and productivity of
the products are important and in many cases
crucial to the customers’ success and profitability.
The goal is that Volvo Group companies shall
be regarded as number one in customer satisfac-
tion, in terms of both products and services. The
Volvo Group shall also be number one when the
dealers’ customers assess customer satisfaction.
A competent and professional dealer and service
network is of vital importance to the Volvo Group
and contributes to strengthening the Group’s
various brands.
A missed delivery
is a missed sale
Last year, the bread producer, Pågen AB, placed an order
for 61 Volvo FL trucks.
“We are in the fresh produce business. Distribution is
the one part of our chain that must be completely fault-
less,” says Johan Blixt, Purchasing Manager at the Pågen
Group.
The first Volvo trucks
For 20 years, the drivers at Pågen AB have driven another brand
of trucks, so the decision to change supplier and make an invest-
ment of this size requires serious consideration.
“Our procurement processes are very thorough. Suppliers are
compared in great detail. Volvo came out well and won this contract.
But Volvo will still have to work hard for several years to come.”
The service organization was decisive
Price was not the main reason the Pågen Group made its choice.
“I would say the decisive factor was Volvo’s service organization.
We have been very well received, they have listened to what we had
to say and we feel well looked after. These things are important for
me as Purchasing Manager when taking such large decisions and
for our employees that leave the vehicles at the workshop.”
Pågen AB has chosen to invest in Volvo’s Gold Service Con-
tract for the new trucks.
“When a driver hands in a truck for service, whatever work has
been ordered must be completed in the appointed time. If we
lose time, we miss deliveries and a missed delivery is a lost sale.
It just has to work!”
Fits Pågen’s environmental profile
Volvo trucks’ environmental qualities are highly valued by Pågen.
“We strive to minimize our environmental impact throughout our
chain and invest in premium environmental technology, and the
transports are no exception.
Pågen AB
Pågen is Sweden’s largest bread producer. Net
sales amounted to SEK 2.7 billion.
Freshly baked bread is distributed across
Sweden from bakeries in Malmö and Gothenburg,
seven days a week, all year long.
Of the approximately 1,400 employees, 430
work as sales staff and drive bread trucks around
their own district of stores. In total, Pågen’s sales
staff visit 5,000 stores every day.
The order: 61 trucks of the Volvo FL model.
Sales of hard
products, 65%
Sales of services and
aftermarket products
(soft products), 35%
Soft product share of Industrial Operations’ net sales 2010
19