Tuesday 22nd Aug 2017 - Logistics & Supply Chain

€200m procurement savings at VW Truck & Bus

Volkswagen Truck & Bus, parent company to truck-makers Scania and MAN, says it is saving €200 million a year in procurement synergies since the reorganisation of the operation on a cross-divisional basis.

In its first half results, the company said: “The commercial vehicle brands have already increased their collaboration significantly. Volkswagen Truck & Bus’s matrix organisation is paying off as planned: areas such as development, finance, HR, or procurement are now organise as cross-divisional functions.

“Synergies in procurement in particular have by now saved around €200 million per annum. But this is not the only area where we can see progress: in June, employees of the holding relocated to the new company headquarters in Braunschweig.”

In the first half of 2016, MAN sold 39,700 units, up four per cent on the same period on 2015. Scania’s sales were up nine per cent to 40,310 units. Truck sales in western Europe were up 15 per cent.

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