Volvo 2015 Annual Report Download - page 40

We support customers in more than 190
markets. We have an extensive network
of wholly- owned and independent deal-
erships, as well as workshops available
along main routes. In the last couple of
years we have optimized our networks
to fit each market and thereby each customer in the demanding
transport and construction businesses.
Increased important service offering
In addition to vehicles and machines, the Volvo Group’s offering
includes various types of financing solutions, insurance, rental
services, spare parts, preventive maintenance, service agree-
ments, assistance and IT services. The range and flexibility of the
offering means that the solutions can be customized for each
customer. As a large portion of aftermarket services are needed
on a continuous basis while our products are in use, theyhelp to
balance out the fluctuations in our business cycle. Bystrengthen-
ing the service offering, profitability and revenue stability can
improve. The service offering is therefore an important element of
the Volvo Group’s effort to achieve targets for profitability and
growth, both in mature and in new markets. During 2015, the
spare parts, services and aftermarket products business repre-
sented approximately 25% of the Volvo Group’s net sales, com-
pared with 26% during 2014.
Supporting customer uptime
The service support our customers receive makes a significant
contribution towards customer satisfaction. One part of this sup-
port is the Volvo Action Service, which celebrated its 25th anni-
versary in 2015, see page 14.
To increase knowledge and skills and encourage the sharing of
best practice the Volvo Group runs local, regional and global com-
petitions for our aftermarket personnel.
For example Mack Masters is about recognizing outstanding
technicians who demonstrate the skills, collaboration and prob-
lem solving abilities needed to service today’s sophisticated
trucks and maximize uptime for customers. The 2015 winner was
the Team Babine PG from Canada.
Volvo International Service Training Award (VISTA) is the world’s
largest competition for aftermarket personnel. It is open to the
Volvo Trucks’ and Volvo Buses’ global service network. The CE
Masters competition is a skills competition open to technicians of
authorized Volvo CE dealers. During 2015, both Vista and CE
Masters started selection of participants for competitions which
will end in 2016.
SUPPORTING OUR CUSTOMERS
ALL OVER THE WORLD
One of our long-term business and sustainability ambitions is to be our customers’ closest
business partner where success is based on being the best at solving customers’ problems
and helping to make them successful.
Environmental product information
Information about our CSR and sustainability performance
increasingly influences customers’ decisions to do business with
the Volvo Group, especially fleet owners. Clear and open product,
marketing and sales information is essential for customers to be
able to make an informed choice about our products and services.
Customers receive Environmental Product Information (EPI) for
many of our products, based on the result of lifecycle assessment.
Our EPI is divided into three sections:
1. Production: information about energy consumption, emissions
and waste arising during production.
2. Use: information about fuel consumption, emissions and
spare parts during the use phase.
3. End of life: information about the scrapping and recycling of
products.
All Volvo Group-owned dealers work according to the Group’s
environmental requirements and towards fulfillment of the ISO
14001 standard. This means they receive, for example, detailed
instructions on how used oils and other fluids are to be handled.
Customer CSR Assessment
During 2015, we finalized a pilot for the Customer CSR Assess-
ment. The project was initiated following the Swedish Govern-
ment’s introduction of requirements on the Swedish Export Credit
Agency, EKN to include human rights in their assessments of
customers. The project was focused on customer financing for
Volvo Construction Equipment and the Group’s trucks in Africa
and the Middle East. It focused on customers in high-risk seg-
ments and extreme and high-risk countries, as defined in our CSR
Country Risk Atlas. The atlas is tailor-made for the Volvo Group
using risk indices from a global risk analytics company combined
with the principles in our Code of Conduct.
In 2015 the number of assessments performed was 40 for
Group Trucks, 39 for Volvo Construction Equipment and 3 for
Volvo Buses.
In November 2015, Volvo Construction Equipment performed
an audit and the process will be further developed based on that
input.
During 2016, the Customer CSR Assessment process will be
implemented in other parts of the organization and in additional
geographies.
A GLOBAL GROUP BUSINESS MODEL
DISTRIBUTION & SERVICE
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