Volvo 2012 Annual Report Download - page 32

industries. The reliability and productivity of the
products are important and in many cases crucial
to the customers' success and profitability. A
competent and professional dealer and service
network, which makes sure that customers' vehi-
cles and machines can be used to the maximum
and are free from unwanted stoppages, is of vital
importance for the Volvo Group and assists in
strengthening the Group's various brands.
The goal is that Volvo Group companies shall
be regarded as number one in customer satis-
faction, in terms of both products and services.
The Volvo Group shall also be number one when
the dealers’ customers assess customer satis-
faction.
Growing aftermarket business
In addition to vehicles and machines, the Volvo
Group’s offering includes various types of finan-
cing solutions, insurance, rental services, spare
parts, preventive maintenance, service agree-
ments, assistance services and IT services. The
range and flexibility of the offering means that the
solutions can be customized for each customer.
hen customers choose a sup-
plier of vehicles or machinery,
the offering of supplementary
services combined with excel-
lent products is a crucial factor.
Customer surveys show that the Volvo Group's
companies get high ratings in terms of service
and spare parts availability in most markets. As
important as getting the customers' vehicles and
machines back in operation quickly, is the way
customers are treated. This does not apply to
just a specific workshop, instead customers
must be able to count on receiving the same,
first-class service wherever they are.
The Volvo Group offers such services as finan-
cing and insurance, various forms of service agree-
ments, accessories and spare parts. The Volvo
Group’s increasingly broad range of these services
and aftermarket products is of ever-increasing
importance to the Group's competitiveness.
Develop and increase interface
with customers
The majority of Volvo Group’s customers are com-
panies within the transportation or construction
WORLD-CLASS SERVICES
Strengthen customer relationships
Many customers want long-term cooperation around total solutions
to execute their work as efficiently as possible with maximum
profitability and reliability.
Distribution of net sales 2012
W
A GLOBAL GROUP 2012 BUSINESS MODEL
Since a large part of the offering within the
aftermarket business is requested as long as
products are being used, they contribute to bal-
ancing the fluctuations in the business cycle for
the Group. By strengthening the aftermarket
offering, profitability and revenue sustainability
can improve for the Group throughout the busi-
ness 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 2012, the
services and aftermarket products business (soft
products) represented approximately 27% of net
sales in the Industrial Operations compared to
26% in 2011. The extended product offering
such as used vehicles and machines, trailers and
superstructures and special vehicles were previ-
ously defined as soft products. As of January 1,
2012 these are instead defined as hard products.
Sales of soft products
(services and aftermarket
products), 27% (26)
Sales of hard
products, 73% (74)
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