Annual report 2008 - Munters

Moisture Control Services (MCS) division
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long time. The new global credit policy is now much stricter,
and all processes related to accounts receivable have been
significantly improved. The review of all accounts receivable
unfortunately resulted in the need to allocate substantial
reserves, but the “clean-up” is now fully completed and work
methods in this area have changed radically. This work will
result in better utilization of operating capital and significantly
reduce the risk of additional credit losses.
Strategy
Management has defined ten strategic initiatives that will be
implemented in the entire organization during 2009.
Market
• Increased focus on four selected customer segments: insurance
companies, property managers, public properties and
industry with dedicated sales representatives who create
deeper understanding or customer requirements
• Service mix – the service range will be reviewed and improved
based on relevance, profitability and proactiveness
• Critical mass – each country must be able to show an established
critical mass with respect to volume and returns. Otherwise
measures such as mergers or divestments will be taken.
Operative initiatives
• All data systems within MCS will be integrated to facilitate
information exchange, process control and decision making
• The number of depots will be reduced, and each country
will instead have a central administrative and logistics function
that will result in more efficient resource utilization of
both equipment and personnel
• Development of systems for benchmarking of damage
restoration processes, followed by the introduction of best
practices in the entire organization
• Introduction of Field.Link in the remaining countries.
Financial initiative
• Increased focus on capital turnover rate has resulted in a strict
credit policy being implemented in the entire organization.
Folksam names Munters as main supplier
Karl-Eric Larsson is manager for the Construction
Technology Claims department at the Folksam insurance
company. He relates here what was the basis for
selecting Munters as the business partner for inspection
and handling of water and fire damage.
“At Folksam, we work constantly to improve our
claims settlement process. When damage has occurred,
we must be able to offer our policyholders fast
high-quality handling of their claims.
“Just as Folksam, Munters places great emphasis on
process improvement, and the investment in the mobile
IT system that Munters is making supports the ideas
and requirements that we have,” says Karl-Eric Larsson.
Quick overview
“The benefits that Folksam sees with this technology are
that orders can be placed easily, while Munters technicians
in the field can give Folksam’s claims adjusters a
quick overview of the extent of the damage. Supported
by this information, Folksam in turn can give policyholders
more accurate information regarding the extent of
the damage and the estimated time for repairs.
“The insurance sector is very competitive, and
today, both we at Folksam and our business partners
must be at the forefront even when it comes to technical
developments. Against this background, it was a
natural choice to select Munters as the main supplier
for inspection and handling of water and fire damage,”
concludes Karl-Eric Larsson.
Personnel initiatives
• A more flexible organization will be created with different
forms of employment in which continued training and
multiple skills will be prioritized
• Performance-oriented culture with structured goals, feedback
and compensation planning for management positions.
Focus in 2009
During 2009, work will continue to improve the division’s
profitability and tied-up capital and to deliver results within
the strategic initiatives. MCS intends to create a scalable
business model based on successful and cost-efficient routines
and to implement standardized work processes in the entire
organization.
Furthermore, work will continue to increase the efficiency of
logistics within damage restoration operations. The first step
will be to introduce a single comprehensive customer service
function in each country that will have an overall role in distribution
of personnel and equipment to various assignments.
This logistics structure is already in place in the UK, where
experience has been very positive. As a result of this restructuring,
the number of small depots will be reduced.
The division will also devote considerable effort to developing
and strengthening work with key customers in the four
prioritized customer segments. Work with key account sales is
expected to result in continued increases in the proportion of
framework agreements in total sales and to increased market
share. During 2009, MCS also has as its goal to grow in the
area of equipment leasing for temporary moisture and temperature
control, particularly in the European market.
Munters Annual Report 2008