Mohammed Imad Albarbari
Ida-Maja Eldås
Artemis Katsimente
Justine Debaud
Rahaf Nablsi
Jönköping International Business School
Guenola Nonet
Keep this story going! Share below!
Scania’s innovation regarding sustainability is backed by the company’s CEO Henrik Henriksson, who believes that organizations that fail to adapt and find new solutions to the Sustainable Development Goals will be stuck and unchanged. In order to keep Scania in the forefront of the sustainability movement, employees such as Peder Nordgren collect data to analyze in order to sustain and improve their current methods.
Scania leads the industry by gathering all kinds of driving performance operations data. However, "gathering data itself does not create any value. It is how we use the data," Nordgren explained. Therefore, the company has developed a new approach on how better-trained and better-performing drivers could benefit its customers’ business. ThIs not only benefits the company but also allows the drivers to have an advantage with better perspectives towards either better paying employment or better social benefits. On the one hand, by using Scania’s Fleet Management Program, customers would learn how to analyze and use the information they receive and how to track the operation of every owned truck as well as the performance of every single driver. On the other hand, drivers who have taken Scania’s Driver Training program acquire the necessary knowledge to reduce, on average, 10% of their gas consumption. This is largely done by understanding how to optimally operate a Scania truck.
Scania has decided to take the lead in the shift towards more sustainable solutions in the transport industry. Its approach rests on the three pillars of energy efficiency, alternative fuels and electrification, and smart and safe transport. These three pillars affect safety aspects, energy efficiency, fuel consumption and the functionality and maintenance of transportation solutions. In order to accomplish this vision, the company keeps improving and developing services and solutions. "Wherever in the world you go to buy a Scania solution, you should be offered an alternative fossil fuel vehicle. We are committed to making sustainable solutions our standard offer and fossil fueled the alternative," explained Henriksson, Scania CEO and president. As he noted in the Scania Report 2017, he also believes that at one point in time the sustainable solutions will become the only viable option and that "businesses that are not part of developing solutions to the sustainability challenges of our time will struggle to survive."
Delivery companies using the Fleet Management Program, in combination with the Driver Training, Coaching and Tools programs, become more fuel-efficient and reduce operation costs. Since every driver is coached one-on-one, this individual assessment and guidance approach allows for individual operational skills to be tuned up and be translated into longer periods between engine services. This adds value to a growing demand of eco-friendly ways of transportation for their customers’ goods.
Because of the high product standards and efficient services to its customers and stakeholders, while supporting the Sustainable Development Goals, the company took the 20th place at The Most Valuable Nordic Brands in 2016. Furthermore, Scania will have more dynamic business as it provides a friendly atmosphere for its employees by motivating and providing professional training programs. The company displayed an increase of 12% in delivering trucks and buses from 2016 to 2017. It also enjoyed a strong performance in 2017 with its net sales increasing by 15% to a high record of SEK 119.7 billion. The growth was observed in almost all the regions where Scania operates with Asia being the most promising region. It could also be expected that companies participating in the Fleet Management Program will increase their business and, in future expansions, acquire more Scania trucks and hire more drivers who can then be added to this program.
The company strives for a cleaner and safer transport industry supporting the global efforts to preserve the environment by reducing carbon emissions and, thus, to enhance its role in the environment. This is done firstly, through the elimination of waste by optimized production processes; secondly, activities specifically aimed at improving its energy efficiency; and thirdly, converting to using renewable sources. Their target is that all purchased electricity will be fossil-free by 2020.
Get stories of positive business innovations from around the world delivered right to your inbox.
Peder Nordgren, Head of Presales and Marketing, Fleet and Driver Services
Scania is a 127-year-old Swedish manufacturer of trucks and buses, with Europe and South America as its main market. The company is very socially committed and involved in education, cooperating with different universities and high schools in Sweden and international partnerships worldwide.