Husqvarna AB - simplifying operations, reducing cost and increasing service levels
Husqvarna AB, headquartered in Sweden, is the world’s largest producer of chainsaws, lawn mowers and other petrol-powered garden equipment, amongst other products. Like many other global companies, it has to cope with a fragmented legacy of national factories, sales companies and warehouses.
With increasing competition from low-cost producers and customers becoming more demanding, the company realised it needed to secure its position by simplifying its operations, reducing cost to serve and increasing service levels. Analysis showed that existing processes were characterised by complexity, together with a low degree of uniformity and lack of collaboration. Decision-making was largely decentralised. Multiple IT systems were being used in parallel to perform a single function such as forecasting.
Husqvarna and PA formulated a logistics strategy called “the state of simplicity” with three principles: one way of doing things (standardised processes), one IT solution (to be used by everyone who needs to perform a given function) and one set of KPIs (against which to monitor performance).
PA supported Husqvarna in implementing the strategy and also worked alongside Husqvarna on more detailed tasks like process design, definition and selection of IT systems and creation of KPIs. Specific projects led by PA included the consolidation of 50+ warehouses into a few regional distribution centres.
To find out how PA can implement better operations and services for your business, please contact us now.
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