TODD C. SNELGROVE: Why did that happen? BO-INGE STENSSON: Two events occurred simultaneously. First, our CEO saw how

we were quantifying and measuring true value and total cost of ownership on our sales side, and wanted a structured process within Procurement, because in the past we weren’t measuring all the possible costs and benets of dierent supplier oerings. Second, the executive board implemented a centralized procurement operating model to make sure SKF could reach its long-term strategic targets in terms of operating prot margin, return on capital employed, and growth. By leveraging SKF’s total sourcing volume across all SKF businesses and by developing a capable strategic supplier base, we’ve built a strong foundation to give SKF competitive advantages in the markets where we operate.