Atlas Copco - Annual Report 1999

GROUP COMMON PROJECTS
Efficiency Gains
through Support Functions
Apart from continuously improving the efficiency of its operations, the Group
develops synergies between support functions where the potential for efficiency
gains through bigger volumes has been identified. Good examples are the Atlas
Copco Internal Bank, which serves the entire Group; the distribution centers,
where a number of divisions share a single center; and Atlas Copco ASAP,
serving sales companies in Europe with administrative tasks.
Bank open 24 hours a day
The Atlas Copco Internal Bank, a profit-driven operation,
assists companies in the Group with services that previously
were performed by an external bank. To have a competitive
edge over local banks and become the customers’ first choice,
the bank has tailored its organization and product offering to
fit the Group. The bank has gradually developed its product
offering during the 1990s and now supports customers in the
area of funding and deposits, foreign exchange, payments and
netting, and in trade finance, the latter mainly to emerging markets.
With offices in Sweden, the U.S., and Hong Kong, the
bank provides services worldwide, 24 hours a day. As a complement
to personal services, the Internal Bank has developed its
own web site where customers have on-line access to a number
of functions in real-time.
66 ATLAS COPCO 1999
Efficient distribution flow
Atlas Copco has well-established distribution
centers both in Europe and the
U.S. These companies specialize in distribution
and are responsible for all
administration of goods, from the time
they enter the warehouse, to the time
they reach the customer. After seven
years of operation, Power Tools Distribution
(PTD), Belgium, has expanded
to serve five divisions in two business
areas and 10 production units. PTD
ships to 110 countries, with deliveries
to 24 countries in Europe and North
America on a daily direct-delivery
basis. All orders received before 4 PM
are picked, packed, and dispatched on
the same day, and the average time of
order to delivery is between 24 and 48
hours.
Fast and accurate information
Atlas Copco ASAP was established in May 1999, with a mission
to sell administrative services to sales companies in Europe, in
areas such as information systems, accounting, and reporting.
This new internal service provider will be operating through a
more or less virtual organization. A core team is based in Belgium,
and more people will be co-located at sales companies
around Europe. The objective is to improve the quality of administrative
processes by applying best practices, re-engineering
processes, and using better tools. One of the first processes ASAP
focused on was financial reporting. Thanks to a new tool developed
by ASAP, internal customers can get accurate information
faster. The first customer to buy and implement the new system,
Atlas Copco Compressor in the Benelux, will soon be followed
by others.