Scania annual report 2004

Closer to customers
and their demands
Today major transport companies compete by means of advanced logistics systems. Their customers
demand that goods be delivered quickly and punctually – just-in-time, every time. That is why transport
companies are investing in vehicles and in service that provide high quality and maximum uptime.
Internationalisation, structural changes
and increasingly active customers and
consumers have transformed the transport
industry. Demands for faster, more reliable
and cheaper deliveries are forcing transport
companies to improve the efficiency
of the flow of goods, services and information.
More and more hauliers are evolving
into logistics companies with total responsibility
for their customers’ transport
needs. Meanwhile many smaller haulage
firms are specialising or becoming subcontractors
to large logistics companies.
Such services as financing, insurance,
short-term rentals and maintenance are
in ever greater demand.
New legislation
The operations of transport and logistics
companies are also affected by political
decisions and new legislation. The European
Commission recently adopted a
proposal for changes in the Working Time
Directive for commercial vehicle drivers.
For the transport industry, one effect of
this will be shorter working hours. The purpose
is to reduce the number of accidents
caused by exhausted drivers. Another EU
directive will increase the requirements for
in-service training of professional drivers.
The aim is to improve road safety and reduce
fuel efficiency.
In order to satisfy new customer demands,
in recent years Scania has made
major investments, not least in its sales
and service network. Today most of this
network is owned by Scania. The integration
process has created greater proximity
to customers, who can choose the
best combination of transport solutions
from a large array of vehicles, services
and financing.
Truck customers
A customer’s decision to choose a Scania
truck is rarely just about the price of the
vehicle itself. More important are the total
costs and revenues that the vehicle generates
during its entire service life. Large
transport and logistics companies prioritise
vehicles with high operating reliability and
good fuel economy. A well-developed service
and road assistance network is
important when every delivery must arrive
on time. For small hauliers, a vehicle’s
dependability and reliability are often vital.
It is not unusual for the driver himself to
own the truck. A cab with a good driver
environment both for work and rest is
often a weighty purchasing argument for
an owner-operator haulier. Image means a
lot too, since the truck becomes a small
company’s most important calling card.
In many European countries today,
there is a shortage of well-trained professional
drivers. Having the best truck makes
it easier for a haulage company to recruit
good drivers. And good drivers who drive
good vehicles mean higher profitability.
In South American markets, especially
Brazil, there is a continued trend towards
larger and larger combinations for heavy
haulage in the agricultural sector, but also for
tanker haulage. So-called “BiTrem” – tractors
with two semitrailers – are increasingly being
used to improve total transport economy.
The gross weight of the rig can be increased
to a maximum of 57 tonnes, compared to
45 tonnes previously. The trend has favoured
Scania, which dominates this segment.
The use of such rigs reinforces the need
for high engine power, which coincides
with Scania’s strategy and its famously
robust, powerful engines.
Bus and coach customers
Scania’s customers in city bus services
are often private operators, in many cases
active in more than one country. To a
growing extent, they are demanding total
transport solutions. Service and repair
contracts, financing and traffic planning
are examples of the elements that may
be included in Scania’s bus business.
Customers in the tourist coach segment
previously composed their own coach by
ordering the chassis from one manufacturer
and the body from another. Today more
and more customers, especially in Europe,
want to buy complete buses from one
supplier. Scania solves this with the help of
partnerships with a number of selected
bodybuilding companies.
In South American markets, a number
CUSTOMERS • SCANIA ANNUAL REPORT 2004 20