Digitalization of Volvo Group's International Manufacturing Supply Chain

Sammanfattning: Background: The International Manufacturing division (IM) at Volvo Group Trucks Operations (Volvo) in Gothenburg handles the supply of Volvo’s international manufacturing efforts. This is done using knock-down manufacturing where complete trucks are sent in pieces to be assembled at location. IM’s supply chain is nonconforming in both processes and volumes, compared to the central Volvo organization, which has resulted in neglect of further digitalization efforts. Therefore, it is of interest for IM to investigate factors enabling and challenging further digital development within their supply chain. Problem description: IM does not currently have full overview and understanding of to which extent their supply chain is digitalized. Therefore, IM has expressed an interest in a detailed case study of digitalization in their supply chain. This study should have the objective to map the current digitalization in IM’s supply chain. The study should also aim to find and analyze enablers, challenges, and critical success factors for digitalization in the supply chain. Purpose: The purpose of this master thesis is to identify enablers, challenges, and critical success factors and account for how these can be used in the current and further digitalization of Volvo Group Trucks Operations division IM’s supply chain. Research questions: RQ1: Which processes are sufficiently digitalized at IM, and which are neglected? RQ2: What enablers and challenges to digitalization are there? Methodology: This master thesis was conducted as a single case study using a qualitative research approach. The data was collected through interviews, a survey and, excerpts from Volvo’s internal documents. To verify the results, two verification workshops were held with the interviewees. Results: RQ1 was answered by mapping the cyber-physical processes at IM and by evaluating IM’s digitalization work using a digitalization maturity framework. The answer to RQ2 was found to be three critical success factors, namely, digital change management, effective use of existing data, and clear digital organizational structure.