Volvo 2013 Annual Report Download - page 28

A GLOBAL GROUP 2013 STRATEGY
Creating value in every
stage of the value chain
The Group is dependent on stakeholders to develop its
competitiveness, in the same manner as its stakeholders are
dependent on the Group in many respects. Accordingly, the
Volvo Group strives, jointly with stakeholders, to create common
values in a manner that is sustainable in the long-term.
1 PRODUCT DEVELOPMENT
VALUE CREATION
The Volvo Group’s operation
comprises several activities
and products that create value
for our stakeholders.
2 PURCHASING 3 PRODUCTION
• Costs for research and development
amounted to SEK 15.1 billion (14.6) for
2013, corresponding to 5.5% (4.9) of
netsales.
• Product development is controlled by the
needs of customers, legislation, changes
in society and new technology.
• Safety and environmental issues are
integrated in product development.
• More than 90% of the environmental
impact from a truck occurs during use.
Consequently, product development
focuses on sustainable transport
solutions.
We work to reduce the environmental
impact of our products and on developing
energy effi cient solutions for our customers.
Each new product shall have less environ-
mental impact than the product it replaces.
The Group works continuously to improve
the performance of products and our long-
term research and development focuses on
sustainable transport solutions, with a focus
on transport effi ciency, lower fuel consump-
tion and thus lower emissions, as well as on
alternative fuels, hybrid solutions, fully elec-
tric vehicles and Intelligent Transport Sys-
tems. This is profi table for the customer,
good for the environment and a competitive
advantage for the Volvo Group. Safety has
been our guiding star since 1927. Our long-
term vision is zero accidents with Volvo
Group products. Our security program is
focused on avoiding accidents and prevent-
ing injury to the driver and other parties
involved but also on the development of
reliable products and increased safety for
people and goods.
• The Volvo Group has approximately
36,000 subcontractors in the fi rst tier, of
which about 6,000 supply components
for the Group’s products.
• In 2013, the Group made purchases of
goods and services in an amount of
SEK192.2 billion (207.8).
• Corporate social responsibility is an inte-
grated part of the purchasing process.
• One job within the Volvo Group gener-
ates a number of other job opportunities
directly at subcontractors and indirectly
in the rest of society.
Responsible purchasing involves encouraging
correct behavior, managing risks and building
long-term relations with our suppliers to
improve social, environmental and business
ethics in the supply chain. The Volvo Group
strives to ensure that unethical values are
not incorporated into our products and
services, and we base our work on a mini-
mum standard in our Code of Conduct. We
believe that a high standard in our program
for responsible sourcing will result in high
productivity and stable long-term relations,
which will benefi t all parties.
• At year-end 2013, the Volvo Group had
95,533 (96,137) employees and 14,794
(13,452) temporary employees and con-
sultants, of whom 46,185 (47,272) employ-
ees and 6,201 (4,522) temporary employ-
ees and consultants were blue collar.
• The Volvo Group has 67 factories in
18countries around the world.
• In 2013, the Volvo Group’s wholly-owned
truck operations delivered 200,300
(204,300) trucks. Furthermore, the Group
delivered 8,900 (9,300) buses, 70,800
(75,500) units of construction equipment,
17,500 (17,200) marine engines and
17,700 (17,600) industrial engines.
Environmental work is governed by a com-
mon environmental policy. Another impor-
tant tool is Volvo Production System, with
methods for streamlining the operation and
minimizing productivity losses and also
tools for documenting work-related risks,
indicators for measuring health and safety
performance and methods for creating
ergonomic workplaces. At the end of 2013,
94% of employees in production worked in
units that are certifi ed according to environ-
mental and quality management systems,
primarily ISO 14001 and ISO 9001.
SUSTAINABILITY
PERSPECTIVE
The sustainability perspective
is an integrated part of the
Group’s operation.
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