The purpose and main problem of this thesis is to describe the supply chain, in a system with great distances between production and sales units, and explain how to solve logistics problems and increase sales by focusing on the customers’ needs. Customers in Southeast Asia and Australia are annoyed with the construction equipment industry. Volvo CE is in an unfavourable competitive position, although it is the leader in terms of product quality…
Contents
1.1 BACKGROUND
1.2 PURPOSE AND RESEARCH PROBLEMS
1.3 OUR RESEARCH MODEL
2.1 RESEARCH STRATEGY
2.2 CASE COMPANY
2.3 CASE STUDY RESEARCH DESIGN
2.4 APPROACHES FOR CONDUCTING RESEARCH
2.5 QUALITATIVE AND QUANTITATIVE RESEARCH
2.6 HOW WE DID OUR CUSTOMER SATISFACTION SURVEY
2.6.1 PIMS principles – the base
2.6.2 How representative are our findings?
2.6.3 How we conducted the survey
2.6.4 Calculation of the comparative score
2.6.5 The disadvantages of Customer Survey
2.7 DATA COLLECTION
2.7.1 Field work in Europe and Asia
2.7.2 Valuable help from the company
2.7.3 Workshop
2.8 IMPLEMENTING EXISTING THEORY VS CONSTRUCTING OUR OWN
2.9 REFLECTIONS ON VALIDITY AND RELIABILITY
2.9.1 More than 60 hours of interviewing
2.9.2 A few aspects on data collection
2.10 DELIMITATION
2.11 DEFINITIONS
3.1 CUSTOMER VALUE AND SATISFACTION
3.1.1 Customer value
3.1.2 The PIMS Principles
3.1.3 Customer service
3.1.4 service driven logistics system
3.2 STRATEGIC LOGISTICS MANAGEMENT
3.2.1 Supply chain management
3.2.2 Information flow
3.2.3 Product and parts flow
3.3 BENCHMARKING COMPETITORS
3.3.1 Predicting competitor behaviour
3.4 CUSTOMER TAILORED LOGISTICS
3.4.1 Customer Satisfaction
3.4.2 Efficient Order
3.4.3 Product/parts Quick Delivery
3.4.4 Benchmarking competitors
3.5 TO WHAT EXTENT WE USED THE THEORIES
4.1 PRESENTATION OF VOLVO CONSTRUCTION EQUIPMENT
4.1.1 Samsung acquisition
4.1.2 The Volvo brand
4.1.3 Production plants
4.1.4 Volvo CE in Southeast Asia & Australia
4.2 STRATEGIC ANALYSIS OF VOLVO CE
4.2.1 Volvo CE global strategy
4.2.2 Objective
4.2.3 Assumption
4.2.4 Resources and capabilities
5.1 WHO HAS PARTICIPATED IN OUR SURVEY?
5.2 DRIVERS OF PURCHASE – SERVICE IS MORE IMPORTANT THAN PRODUCT QUALITY
5.3 COMPETITORS – CATERPILLAR AND KOMATSU ARE THE MAIN PLAYERS
5.4 VOLVO CE IS NOT IN A GOOD COMPETITIVE POSITION
5.5 CUSTOMERS ARE ANNOYED WITH THE INDUSTRYCustomer Tailored Logistics
5.6 DEALERS ARE PESSIMISTIC
5.7 SALES COMPANIES ARE JUST AS PESSIMISTIC AS DEALERS
5.8 HEADQUARTERS ARE OPTIMISTIC – BUT IMPRESSED BY CATERPILLAR
5.9 DIFFERENCES IN PERCEPTIONS
5.10 THE NEW VOLVO BRANDS HAVE A LOT OF GROUND TO MAKE UP
5.11 PRODUCT-RELATED VS. SERVICE-RELATED FACTORS
5.11.1 Product-related factors – Volvo is the leader
5.11.2 Service-related factors – Volvo is weak on all service factors
5.12 FACTORS FOUND OUTSIDE THE SURVEY
5.12.1 Good service to the big customers
6.1 INFORMATION FLOW
6.1.1 Ordering
6.1.2 Dealers have no access to online order systems
6.1.3 Rigid forecasting and questionable parts replenishmen
6.1.4 Problems in Communication
6.2 PRODUCT FLOW
6.2.1 Where the products go
6.2.2 Production
6.2.3 Standardised versus differentiated products
6.2.4 Shipping
6.2.5 Warehouses and Inventories
6.2.6 Weak dealers are reluctant to have any stock
6.2.7 Dealers supposed to carry all stock in the future
6.3 SPARE PARTS FLOW
6.3.1 Order urgency
6.3.2 Parts Availability Programmes
6.3.3 Parts stock situation in Southeast Asia and Australia
6.3.4 Transportation
6.3.5 Parts supplied by each plant
7.1 CATERPILLAR
7.1.1 Strategy – be number one in all segments
7.1.2 Assumptions – expansion in emerging markets
7.1.3 Objectives – control all inventories centrally
7.1.4 Resources and capabilities – a strong reputation
7.1.5 Logistics
7.2 KOMATSU
7.2.1 Strategy – adapting to crisis
7.2.2 Assumptions – responding to increasingly diversified demand
7.2.3 Objectives – satisfying customers
7.2.4 Resources and Capabilities – customer survey programme
7.2.5 Logistics – central parts co-ordination
7.3 CATERPILLAR AND KOMATSU – BIG ALSO MEANS TROUBLE
7.4 HOW DID THEY RESPOND TO THE ASIAN CRISIS?
7.4.1 Caterpillar – Does not intend to lose dealers even if it loses money
7.4.2 Komatsu with middle-way formula
8.1 INFORMATION FLOW
8.1.1 Lack of information sharing
8.1.2 Inappropriate systems and unclear obligation
8.2 PRODUCT AND PARTS FLOW
8.2.1 Production
8.2.2 Transportation …..
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Author: Wang, Junyi,Jonsson, Christoffer
Source: Goteborg University
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