Multisourcing eases Husqvarna-Electrolux divorce

19.05.2006
Swedish company Husqvarna AB is divorcing its manufacturing giant partner AB Electrolux -- but the separation is going smoothly, thanks to Husqvarna's strategy of IT multisourcing.

The companies' divorce will be complete on 25 June, when Husqvarna starts as a publicly traded company on the Stockholm Stock Exchange.

"Our strategy with several outsourcing vendors, multisourcing, has simplified the process," said Chief Information Officer Lennart Dorth'.

Husqvarna, a large manufacturing company from a Swedish perspective, is just the latest such company to go public. The company manufactures tractors, chain saws, lawn mowers, and other garden utilities, which it sells globally through subsidiaries in 50 countries, and through a network of partners in 40 more. It has 12,000 employees, and revenue of 30 billion Swedish crowns (US$4.1 billion).

From an IT perspective, though, Husqvarna is quite small. The company only has 20 corporate IT employees, who work as program managers under Dorth''s supervision. Electrolux is a diversified company with a number of operational systems. This has given the business units freedom to formulate their own IT strategy.

"The heaviest part is the logistics, which we have taken care of on our own to get the supply chain running as efficient as possible. We have a system from the Swedish enterprise system vendor IBS, which is maintained by a local consultancy, PDB," said Dorth'.