Saab 2012 Annual Report Download - page 23

SAAB ANNUAL REPORT 2012 19
23
29 30
20122011201020092008
19
25
The gross margin increased
in 2012, partly as a result of
a different product and pro-
ject mix compared to 2011.
The sale of aircraft in Saab’s
lease eet of turboprop
aircraft contributed positively
to the gross margin in 2011
and 2012.
PERFORMANCE
EFFICIENCY AT EVERY LEVEL
One of Saab’s most important competitive
advantages is the ability to deliver the most
cost-efcient solutions to our customers.
Efciency improvements are continuously
being made.
Internal efciency is tested as the company grows in new markets
and through acquisitions. Streamlined governance and processes
are crucial to the avoidance of built-in inefciencies within the or-
ganisation. Over the past years, internal efciency measures have
underpinned day-to-day operations. The success of our efforts
is indicated in part by the improvement of the gross margin from
28.5 per cent in 2011 to 29.9 per cent in 2012.
Priorities 2012
In addition to the development of a more efcient global market
organisation work has proceeded with continuous efforts to im-
prove efciency and productivity in other areas of our operations.
This work has been based on introducing uniform governance and
process management to improve coordination, standardisation
and harmonisation within the Group.
The new six market areas will create a more tangible, visible
market presence. The sales process has therefore been devel-
oped to provide effective business support irrespective of the
location or complexity of the business transaction.
The challenge is to develop a model and procedures that
ensure high implementation efciency – for long-term contract-
based business as well as straightforward orders for in-stock
products. Improvements in project efciency improve our gross
margin. Risk minimisation in combination with well-adapted,
exible project management is the cornerstone for optimising the
gross margin.
To achieve the desired level of efciency in the broad product
portfolio, the products need to support each other and be usable
in different systems. Efforts to streamline and complement the
portfolio continued during 2012 (read more on pages 20-21).
Saab invested approximately 25 per cent of sales in research
and development in 2012. Several centres of excellence have
been established to ensure that each krona invested is used in the
right area.
Operations in South Africa were restructured during the year
due to changed market conditions. As a result, we streamlined
and consolidated our on-site operations within Electronic and De-
fence Systems, Support and Services and Saab Systems Grintek,
which is part of Security and Defence Solutions.
A uniform Quality and Environment certicate (ISO 9001 and
ISO 14001) for operations in Sweden, South Africa and Australia
was nalised during the year.
Priorities 2013-2016
To ensure preparedness to respond quickly when market condi-
tions change, we have maintained focus on predicting, quantifying
and regularly monitoring our market and risk assessments. The
business support system will be further developed to support the
Group and its international marketing organisation.
In order to safeguard the position as a cost-efcient player,
xed costs must be reduced and the share of variable costs
increased.This will improve exibility and the ability to adapt
operations to changed market conditions.
We will continue to improve efciency within purchasing and
R&D by establishing uniform, integrated product development
processes. Certication efforts will proceed in other geographic
markets, including the U.S. In brief, it can safely be said that the
key words for Saab’s efciency improvement efforts are stand-
ardisation, optimisation and harmonisation – in all parts of the
operations – today and in the future.
Gross margin, %