Digitize transportation – from breaking to accelerating. How Volvo Groups steers a new course for its supply chain.
A seamless value chain across multiple businesses and countries ends system fragmentation
The transportation industry has undoubtedly come a long way in terms of innovation. The industry has become increasingly automated, but not at all levels. In particular, there’s still a lot that remains to be done on interaction across the value chain, which often consists of thousands of subcontractors who each have to interact with each other when the parts are to be produced, delivered and assembled into one product.
Volvo Group is a perfect example to digitize transportation. It’s one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. Approximately 100,000 people work across production facilities in 18 countries and sales offices in 190-plus markets, and there are more than 5,000 subcontractors across the value chain.
“Naturally, because of its size, the company is challenged when it comes to logistics and coordinating its value chain. It’s critical that operations run smoothly as delays in one part of the value chain will have serious implications for the rest of the process,” says Andreas Grydeland Sulejewski, CEO of Neptune Software.
Volvo’s transportation companies are split across silos, and its huge size only magnifies any issues. Each company runs on separate processes, which is a nightmare scenario for any employee.
“The implication for the employees is that they are forced to deal with several different systems, which can be both time-consuming and sometimes frustrating. In addition, it can be challenging for the IT department to operate several systems at the same time as well as dealing with integration in cases where the systems can have different coding languages and different user interfaces,” he says.
Time to take control of your value chain
It’s one thing to understand that your siloed structure is holding you back, but without the right digital expertise, how are you supposed to make the right changes?
Today, a majority of industry players use traditional development tools, which are time consuming to use, expensive and which do not give customers sufficient flexibility. The task of tackling the logistics challenges often seems impossible, and far too few companies are asking for digital advice.
After Neptune Software introduced its low-code tools to the Volvo Group, lacking high-level digital skills was no longer an issue. Employees could now develop applications themselves and contribute to Volvo’s digitization project, without relying on external IT specialists.
“Our solution for Volvo was to establish a team of developers who worked with each silo in the company to integrate with the others in the best way possible. Volvo’s new app combines data from several different sources, which helps the management to keep track of the entire value chain,” says Sulejewski.
The new app means they can follow every step of the production process – including how many parts are ordered, when they will be delivered, which truck will deliver them, and where.
“The solution enables Volvo to take into account the most critical aspects of the value chain. The system logs both maintenance orders and delays, so that necessary adjustments can be made during the production process,” says Sulejewski.
Volvo, with this new fully integrated digital supply-chain can better manage the just-in-time logistics for the assembling plants and at the same time manage more than 20.000 parcels daily.
With Neptune, Volvo can better see across the whole business, keeps operations running smoothly, and provide the breathing space needed for better planning.
“Simply put, it’s all about keeping the efficiency level up by providing the company with the right information at the right time. With many thousands of subcontractors this can be challenging, but thanks to new digital tools it’s actually possible,” concludes Sulejewski.
To learn how Neptune Software can connect your value chain with end-to-end business processes, unified access to data and UX, speak to one of our specialists.
A majority of the industry players use traditional development tools, which are time consuming, expensive and do not give customers sufficient flexibility
Neptune Software introduced the Volvo Group for low-code tools, enabling the company’s employees to develop an application using a minimal amount of coding
The solution enables Volvo to take into account the most critical aspects of the value chain
Want to know more about how Neptune Software can digitize transportation and mobilize value chains? Then get in touch with us:
About the Author
Andreas Grydeland Sulejewski – Chief Executive Officer
Global CEO and Board Member of Neptune Software with 18 years of experience in various sales and management roles within tech and software companies. A leader, entrepreneur and business development passionate enjoying the active outdoor life.