Scania’s strength lies with its people

Scania’s strength lies with its people

Attracting, retaining, and developing qualified and dedicated employees is essential to delivering long-term growth with profitability. A motivated and diverse workforce, committed to continuous improvement, provides the right platform for Scania’s success.

The company’s leadership principles form an important base for improving support to our customers and ensuring long-term growth with profitability. A diverse workforce in terms of gender, ages, backgrounds and experience strengthens the company, enhances the ability to attract and retain talent and contributes to the fulfilment of Scania’s strategies towards 2020. The company is seeing progress towards meeting its diversity aims. Two years ago, there was only one nationality represented among the 26 most senior members of management; now there are six. As regards gender diversity, more than 15 percent of all managers are female on a global basis. In 2010, that number was below 10 percent. Of Scania’s total number of employees, 17 percent are female.

Employee well-being is top priority

Scania has a strong focus on ensuring that the company attracts and retains the right competencies to meet future challenges. Since two-thirds of Scania’s 45,000 employees are from outside Sweden, it is clear that the company must be globally focused.

Employee well-being is a top priority for Scania. With 97 percent healthy attendance Scania knows that motivation engages employees to take ownership of objectives and these benefits are translated into increased productivity. In 2015, Scania will enhance the way of measuring employee satisfaction and introduce a global employee barometer.

Involvement inspires motivation

A mindset of continuous improvement is at the heart of Scania’s approach – from R&D and production system to services, to involvement of employees and to responsible sourcing. This serves to both reduce risks and deliver greater value to customers and employees and improve our bottom line. It is a mindset Scania also share with its customers.

Zero deviations is the goal. Scania seeks to identify the root cause of a failure in order to achieve a better understanding of why it has occurred – and learn from it. Everyone is involved in this process in their day-to-day work. In this way the company captures and manages the considerable knowledge within the organisation. Scania also integrate suppliers and business partners in our approach to continuous improvement.

Focus on increasing efficiency

Continuous improvement is the foundation of the Scania Production System (SPS). SPS focuses on increasing efficiency, eliminating waste of time and resources, raising productivity and ensuring high quality. This approach means that issues which arise can be identified and addressed early, enabling a stable production flow. Part of eliminating waste is a strong focus on the environment by reducing the use of energy, water and chemicals and reducing air emissions and discharges into waterways in all production processes.

This philosophy is applied to the sales and services organisation through the Scania Retail System (SRS) and has since been extended to other parts of the organisation, such as research and development, Scania Financial Services and administration.

Constantly improving services

The Scania Retail System (SRS), comprising some 18,000 employees, focuses on how the company can improve efficiency and services to all its customers. The main approach involves looking at the business from a customer perspective and streamlining the workflow in order to become more efficient in meeting customer needs.

The workshops are continuously evaluated to identify areas for improvement and best practice that can be disseminated across the organisation. Across Scania’s service network, including independent dealerships, a number of model workshops in Europe and Latin America have been set up. They spread their SRS experience to our entire service network. Benefits include substantially shorter time for standard maintenance, reduced lead time from order to vehicle delivery, and an increased number of billable hours per service technician.

Focus on responsible sourcing

In an increasingly global marketplace, Scania is leveraging its global supplier network. This is especially vital to meet growing demand in emerging markets, where increasing protectionism presents challenges. The company is working to reduce costs and raising the bar on quality, and are involving our suppliers in that process.

A newly formed Sourcing Board comprising i.e. R&D, Production, Quality and Purchase will provide the integrated approach to help Scania reach our quality goals.

In 2014, Scania launched its Responsible Sourcing programme, to not only reap the benefits of working more closely with suppliers around the world but also to ensure that human rights, labour and environmental risks are assessed and managed along the value chain. Scania is also lending its voice to industry-wide efforts to improve the supply chain. The company is taking advantage of the synergies offered in the Volkswagen Group network to gain a stronger voice to emphasise the importance of high sustainability standards to suppliers. In 2014, Scania joined the European Automotive Working Group on Supply Chain Sustainability, a group of nine automotive manufacturers, facilitated by the European business network CSR Europe. Members work together to improve the social and environmental performance across the supply chain.