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Scania invests in efficient logistics via Lots Group

Legal agreement: Creative Commons 3.0 license
Legal agreement: Creative Commons 3.0 license

More efficient, sustainable logistics is becoming increasingly important in both the transport sector and other sectors. More efficient logistics flows pave the way for better profitability and reduced climate impact for haulage companies. As part of its shift towards more sustainable transport solutions, Scania established the company Lots Group, which is now expanding into Asia and South America.

Scania already offers digital services to optimise and support customers’ specific transport flows. With Lots Group, it is taking a further step that involves optimising flows throughout the logistics chain.

“We are convinced that the transport sector is on the verge of major change. We want to undergo this change in close collaboration with our customers and their customers to produce better solutions in both transport and logistics. By combining the experience of Scania with haulage companies’ local and sector knowledge, Lots Group can achieve a more efficient flow of raw materials,” says Henrik Henriksson, President and CEO of Scania.

A steadier more reliable flow throughout the chain from raw material to finished product produces higher efficiency. It also results in higher capacity utilisation of vehicles for haulage companies and thus higher earnings. The wholly owned subsidiary Lots Group can also offer an analysis of the existing logistics flow, which can contribute to improved profitability for both haulage companies and their customers. This can be achieved using tools that can monitor the vehicles and experience of logistics improvements in Scania’s global production system.

Lots Group’s first market was the forestry industry in Sweden, and it is now expanding its operations into Asia and South America, where there is great potential in the agricultural and mining industries.

“Digitisation makes it easier to identify bottlenecks in flows and analyse load capacity utilisation, waiting times, major variations in transport assignments and compliance with legislation. Unsustainable transport is neither good for the environment nor profitable for haulage companies, and we can see great opportunities in Asia and South America to work with customers on achieving more sustainable transport,” says Henriksson.

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