Volvo 2015 Annual Report Download - page 67

equipment, 17,413 marine engines and 15,295 industrial engines
from our Group operations. These products and services support
our customers’ profitability by enabling them to meet their cus-
tomers’ needs. We engage with our customers in a variety of ways
to understand how we are progressing towards our ambition of
becoming our customers’ closest business partner and delivering
customer satisfaction, see below.
Suppliers
In 2015, our procurement of goods and services from around
43,000 suppliers amounted to SEK 210.6 billion. We build long-
term partnership with our suppliers to ensure cost efficiency,
quality and adherence to our CSR and environmental require-
ments. We engage through online platforms and meetings as well
as ethical assessments and training, see page 30.
Capital market
In 2015, we distributed SEK 6,090 M in dividends to our share-
holders and SEK 1,683 M in interest paid to our debt providers.
In order to run our daily business and secure long-term finan-
cial health the Volvo Group is dependent on obtaining financing
from both shareholders and debt providers. To support mutual
trust and understanding, we engage with shareholders, investors
and analysts through meetings and dialogue.
Employees
In 2015, we paid SEK 40.5 billion in salaries and remuneration to
our employees. Our business success depends on our ability to
attract and retain a skilled workforce. We offer a wide range of
opportunities for employees, and union representatives, to develop,
give feedback and share ideas, see pages 68 and 73.
Society
Local, national and international authorities; non-governmental
organizations (NGOs); business partners; potential employees;
academia and the general public are among our diverse stake-
holders in society.
In 2015 the Volvo Group paid SEK 8,995 M in social costs, SEK
4,340 M in pension costs and SEK 3,110 M in income taxes.
A GLOBAL GROUP BUSINESS MODEL SHARED VALUE
We operate from the viewpoint that organizations
that capture customers’ needs best and translate
them into tailored products and services will be
the leaders in any market or segment. Studies
show that it is five times more costly to find a new customer than
it is to retain an existing one. That is why keeping customers sat-
isfied is vital for business success.
For the third consecutive year, customer satisfaction received
the highest ranking in our materiality assessment. Our definition
of customer satisfaction is understanding customer needs, deliv-
ering the right products and services, and taking a total lifecycle
approach to support customer profitability through quality, fuel
efficiency, uptime, and aftermarket services. We strive towards
this with enhanced customer relationships, long-term brand loy-
alty and business partnerships.
The Volvo Group provides products and services for many dif-
ferent segments and customer needs. The strength and breadth
of our portfolio enables us to meet the individual purchasing
behaviors, needs and expectations of customers operating in
diverse segments, environments and various conditions.
Understanding customer needs
We track customers satisfaction and brand image perception
through surveys worldwide. Performance is integrated in our KPI
reporting and is used to increase our understanding of our cus-
tomers’ needs. Research and studies are done by leading inter-
national organizations and interviews are carried out with deci-
sion makers among Volvo Group customers and non-customers.
CUSTOMER SATISFACTION
From this year’s materiality survey, interviews with customers and
extracts from selected customer satisfaction surveys, we can
conclude that our customers most value fuel efficiency, long-term
partnership and uptime. See our case studies on pages 12 to 16.
We take a structured approach to measuring and managing
customer satisfaction, as shown below. All our businesses and
brands have strategic targets by market. The data from various
global image and benchmark surveys is used to produce a brand
KPI dashboard that informs and supports continuous improve-
ment work.
STRUCTURED APPROACH
Volvo Group Brands
Business Dimensions Surveys
Strategic
Tactical
Operational
Brand
image &
Benchmarking
Dealer &
Workshop
Customer
satisfaction &
Benchmarking
DEALER
Workshop
SALES REGIONS
Market/Country
GLOBAL
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