Customers, agility and employees
Customer’s first choice
Through our decentralized business model, we stay close to our customer base and distributor network. Our sales representatives often work closely with our customers’ production and our solutions are developed based on feedback that we receive from our customers.
Our larger customers have come a long way with their digitalization capabilities and require specific solutions from us. We see an increased need for fully integrated solutions from small and medium-sized enterprises. Our Lighthouse Program is designed to support small and medium-sized component manufacturers. In return, they provide continuous feedback on digital processes and solutions, giving us a deep understanding of customer needs. Two customers joined the program this year, a German-based contract manufacturer and a US research institute.
We ensure that we can be a partner in our customer’s digital journey, regardless of the stage they are at, and offer relevant solutions and expertise to support them.
Agile through cycle
Our ability to leverage our resilience in a challenging year, with large variations in market and segment development, ensured good continuity through the cycle. The market has still not fully recovered since 2019. We worked actively to offset inflation with price implementation in our various business verticals and shifted capabilities towards growth areas and adapted to business situations when and where needed. A higher share of software sales increased recurring revenues.
In the short perspective, business is changing fast and it is critical to have a good planning system. In 2023 we worked with workforce flexibility and outsourcing. We increased our productivity efficiency in our own operations, actively worked with procurement and increased our supply chain ownership. We revised staffing models throughout the year, depending on needs, taking active decisions about where we need our own competences and where to outsource.
We also worked on our fixed assets and footprint optimization within the long-term structural measures announced in 2022. The program will deliver SEK 540 million in annualized savings with a full run rate in 2025.
Employer of choice
We undertake systematic activities to increase diversity and inclusion in our workforce and we are constantly focusing on increasing the share of female employees at all levels in the workforce.
There is a great value in having development plans for all employees and we achieved a 90 percent completion rate in 2023. For following up employee engagement, we undertake quarterly surveys. The results are an important tool for continuous improvement. This year we focused on including acquired entities in our quarterly engagement survey. Health and wellbeing is also measured in the quarterly surveys. We have local health and wellbeing programs at all our major sites.
We are working to attract capabilities needed for the future, including for cloud-based solutions, AI, and full-stack development. To encourage cross-learning we have established mentorship programs across our businesses and we are ensuring that our acquired businesses utilize the vast number of training programs within Sandvik.
