A case study on Trucks’Crossmembers at Volvo Group

Abstract: This thesis aims at investigating the crossmember business within the context of Volvo Trucks, with a focus on identifying standardization opportunities and optimizing the supply chain for improved efficiency and cost savings. The objectives of this study include mapping commonalities in design, raw material grade, surface finish, and thickness across different trucks and brands. Additionally, potential challenges in aligning design and material specifications across various trucks will be examined. The thesis also aims at exploring cost-saving opportunities through enhanced raw material usage and scrap reduction in the crossmember business. To gain comprehensive insights into the supply chain, this research seeks to understand the crossmember component's journey from suppliers to the production line. Specifically, the study will investigate the steel grades, volumes, place of origin, and delivery of raw materials, as well as the prices of individual steel grades. By analyzing the existing contracts and terms negotiated by Volvo suppliers with raw material providers such as steel mills or service centers, the thesis aims to provide Volvo Trucks with greater control over the supply chain network of its components. Furthermore, the research will shed light on the potential difficulties associated with modifying the existing supply chain of the steel market with each supplier. By identifying these challenges, Volvo Trucks can develop strategies to mitigate disruptions and ensure smooth implementation of supply chain modifications. Through a comprehensive examination of standardization opportunities, supply chain optimization, and the implementation of fossil-free steel contracts, this research will provide valuable insights and recommendations for Volvo Trucks. The findings of this study will contribute to the company's efforts in enhancing operational efficiency, reducing costs, and promoting sustainability in the crossmember business.