Annual Report 2004 - HL Display

panies are measured on the basis of total margins for each order,
while the production facilities are measured on their cost efficiency.
This has created a totally new price model, which provides a basis
for better decision-making during price negotiations with customers
and an opportunity in some instances to compete more aggressively
on price. All in all, these measures mean that HL Display
is now on the right track towards better levels of profitability and
growth. Work on improved profitability will continue in the future to
have the same high priority.
Strategies reviewed continuously
HL Display’s strategic plan is assessed and reviewed continuously,
not least to be able to deal with and draw benefit from changes in
the world around us. Having a large proportion of its activities in
Europe, HL Display is affected by such factors as the EU’s ambitions
and measures relating to the internal market, for example
technical harmonisation, more efficient transport activities, fewer
trade barriers and the introduction of the Euro.
The retail sector is also an industry that has, like the automotive
industry, worked hard for many years to reduce its costs and
increase its margins. This in turn places increased demands on
efficiency on the part of suppliers to the retail sector, which is why
it is extremely important that HL Display works continuously to
improve its resource utilisation.
Many areas under review
This is the reason why HL Display is currently reviewing its strategies
in a number of areas. This involves organisational issues to
deal with increased centralisation among customers, restructuring
the logistics function by means of logistics centres all over the
world and increased standardisation of the product range to benefit
from the economies of scale created by centralised logistics
and warehouse operations. There is also a review of channel and
pricing strategies to create opportunities for increased sales and
an evaluation of the opportunities to establish regional “shared
service centres” that deal with back-office functions and customer
and sales support for a number of markets.
HL Display has a full range of display
hooks for goods that are displayed
hanging – here specially adapted for
electronic price labels.
STRATEGISK INRIKTNING
HL DISPLAY ANNUAL REPORT 2004