Scania’s profitability depends on its core value, “Customer first”. The business model focuses on how to improve all customer’s profitability. Through close dialogue, Scania builds partnerships with transport companies and buyers of transport services – the entire logistics flow.
Long-term relationships with profitable customers are the basis for a profitable Scania. By delivering the right products and the right services at the right time, Scania supports its customers in improving their operating income. High-quality vehicles and services maximise customer profit and uptime (the time the vehicle is in operation and thus generating revenue). Maximum load capacity and flexibility are also important for the customer to ensure a stable stream of revenue.
Scania´s business model takes into account the customers’ revenue potential and total operating cost. Scania has greatest influence on these factors: fuel, repair and maintenance costs, vehicle resale value of the vehicle, and cost and availability of financing. In these aspects, it is critical to continue to be best in class. Delivering on this business model defines the Scania brand and ensures a profitable company.
A holistic view
To lead in sustainable transport, and be the industry’s logistics experts, Scania takes a holistic view of logistics. With this approach Scania gain insights from its customers – transport companies – and their customers – buyers of transport services. Transport service buyers are increasingly setting ambitious carbon reduction goals. This affects both customers and Scania. Above all, transport companies value cost efficiency and reliability. Transport companies want to avoid unplanned stoppages, searches for freight and waiting times, all of which increase operating costs. In short, they want their fleet to operate smoothly, efficiently and on time.
With a holistic view, Scania seeks to optimise solutions that improve the profitability of all actors in the value chain. Understanding the cost and revenue aspects of the different applications or industries in which customers operate allows Scania to tailor solutions for vehicles and services that improve customers’ profitability.
While important, it is not enough to simply understand the customer’s business challenges. Scania also needs to understand the demands of their customers, and the cost implications for the entire transport flow in order to eliminate waste and improve efficiencies.