Scania is aiming to lead the shift to a sustainable transport system by identifying value-driving activities, removing non-contributing costs and reinvesting in strategic growth initiatives that improve competitiveness.
Its Group President and Chief Executive Officer (CEO), Henrik Henriksson was recently in Malaysia to talk about internal issues with the top management here and took some time to meet with the press to talk about Scania's sustainable transport direction.
He said it was all about moving people and goods while contributing to economic and social development, without jeopardising human health and safety or endangering the environment.
"For Scania it is evident that sustainability and profitability go together, here and now and increasingly so in the future. I think businesses that are not part of developing solutions to the sustainability challenges of our time will struggle to survive. For us the question is not whether a future of sustainable transport will come, but when. It is towards this future that we are working in close cooperation with our customers and customers’ customers,” he added.
Asia has been one of the most encouraging area for Scania, said Henriksson, where business model, which focuses on total operating economy and vehicle uptime, is starting to resonate with customers.
Scania tailors solutions that eliminate waste and improve efficiencies in the entire transport flow based on its three-pillar approach to sustainable transport, namely energy efficiency; alternative fuels and electrification; and smart and safe transport, which includes vehicles and services.
That approach saw Scania’s net sales rising to a record high in 2017, during which it intensified its efforts to drive the shift towards a sustainable transport system, with an increase of 15 percent compared to the previous year. Meanwhile vehicle orders surpassed 100 000 for the first time as order bookings for trucks rose by 30 percent compared to the previous year.
“Our success is built on our ability to provide profitable and sustainable transport solutions that contribute to the success of customers' businesses. Scania’s business model, our principles, working methods and approach to sustainable transport will continue to be the platform for how we create value for our stakeholders.”
This includes initiatives where Scania was the first in Malaysia to introduce an enhanced and industry-leading three-year warranty with unlimited mileage, with three-year Scania Assistance and 10-year Scania Fleet Management for the trucks sold for operators to get the best Total Operating Economy.
“We work across boundaries with cities, operators and their customers too, taking the whole transport system into consideration. The world can’t wait for a ‘one size fits all’ solution; the conditions and issues vary so much from place to place. We urge authorities and institutions to enable and simplify the use of them all.
“Our aim is that wherever in the world you go to buy a Scania solution, sustainable solutions is the standard offer and fossil-fuelled the alternative,” Henriksson said.
The good news, Henriksson added, is that Scania’s customers do not have to wait to adapt their businesses to a sustainable transport system because the solutions are already available with Scania's broad range of platforms and services now, to support customers' businesses.