Annual Report 2009 - Husqvarna Group

14 Husqvarna Annual Report 2009
Global
processes
In order to build a stronger global company – ONE Husqvarna – several common
global processes are being established for the entire Group. They are aimed at
enhancing internal efficiency in specific areas, and freeing resources for investment
in e.g. products and brands.
Key processes that have
been identified to date:
• Purchasing.
• Demand flow, i.e. management of
flows between the Group, suppliers
and customers.
• Lean production, i.e. measures
to achieve continuous
improvements in production.
• Product creation.
Purchasing
Purchasing
Total purchases from external
suppliers in 2009 amounted to
approximately SEK 20 billion,
which corresponded to approximately
60% of Group sales. Efficient
purchasing requires maintaining
a structured process and coordinated
global and regional activities in order to maximize
efficiency and utilize the Group’s size. Efforts
will also be focused on consolidating the existing supplier base
and identifying new suppliers who could offer benefits such as
new technology or lower prices.
Demand flow
Effective management of demand flow is particularly important
in an operation with marked seasonal variations that involve
tieing-up large amounts of capital in inventories and trade
Lean production
Key processes
Product
creation
receivables. The Group must achieve high
delivery accuracy and quality service for
customers, while simultaneously reducing
tied-up capital, which is an even
greater challenge in a global structure
with integrated global flows.
Lean production
Measures to achieve continuous
improvements in produc-
Demand
flow
tion are aimed at securing high
product quality and delivery
accuracy. Husqvarna is developing
a global production system,
and HOS (Husqvarna Operating
System) is the Group’s platform for
continuous improvement. It will be
rolled out in 2010 and is scheduled to
be on-stream in all units as of 2011.
Product creation
An efficient process for product development based on insight
into end-user needs and a high rate of innovation is decisive
for growth and profitability. The goal is to ensure a continuous
flow of new, attractive and competitive products. The Group
expects that this process will generate synergies as well as
profits from increased efficiency within product development.