International Logistics : Realizing the coherence between efficient logistics strategy and international growth.

Abstract: The world economy is in a transition period never experienced before, One of the main realising factors, boosting economy growth, is the catch up of many emerging countries. The emerging countries impose new competitive dimensions to the global economy, forcing well established multinational corporations into new competitive situations, brining both opportunities and threats. The construction equipment industry has entered a condition of unprecedented growth. The total market demand has increased significantly and the demand development is prospected to continue for many more years. To keep up with the market demand and the sales opportunities, it is important to have machines available in the market. This impose that the logistic strategy is getting more important for companies in order to keep up with the prospected sales opportunities. This Masters thesis is initiated by our case company, Volvo Construction Equipment International, currently suffering from an inefficient logistics strategy constraining international growth. Based on our analysis and conclusion, Volvo Construction Equipment is recommended to move from transaction selling, spot market like international logistics strategy towards a relationship marketing based logistics strategy establishing in-depth collaborations with key account shipping suppliers. Furthermore, we recommend that Volvo CE should consider a logistics management function in order to facilitate the inter-organizational flow of logistics information.