Fitting right in!


He’s young, ambitious, and sharp as a tack. Brazil-born Rafael Alvarenga is Scania New Zealand’s new top man and he’s fired up about steam-rolling the brand he loves through a country he knows plenty about. Away from work, he loves nothing more than cooking a piece of meat on the barbie with a beer in hand and family close by. All he needs is a top-tune on that funny roundball game he appears to like.

Watching the giant corporates manoeuvre their young guns around the globe is always fascinating. There’s that obvious need to expose them to new challenges while ensuring the local market benefits from the toolkit they’ve already amassed.

Earlier this year, we waved goodbye to the warm and affable Mattias Lundholm. A wonderful bloke with a no-nonsense side, Scania appeared to place him in markets that needed more than a run over the pit and No.2 service. He was more your out-of-frame guy. A ‘culture sculptor’, you might say.

There’s no question Mattias did a great job, and in the three years he was here, Scania New Zealand went from splashing around in search of a wave to hanging 10 in the pocket of a sweet 10-footer, having reached No.1 in the over 16-tonne category. Not only was Scania No.1, but at the time he tipped his cap and flew north, the order book for 2022 was also full to brimming. Although taking over from a ‘rock concert’ like that is not easy, Rafael Alvarenga’s credentials may well make him the right man for the job.

“I was born and raised in Brazil. I’ve been married to my wife Fernanda for almost 20 years, and we have three beautiful children, Maria (18), Isabela (15), and Gustavo (11). When I told them where we were going, the kids made a list immediately of everything they wanted to see!” Alvarenga then laughs. “I said, ‘Let’s just get there first, that’s the first challenge in this day and age.’”

Rafael Alvarenga is a youthful 39, arriving here from Scania India, where he was the service director. Before that, he’d spent his career based in his home country. While his recent appointments might appear lofty for such a spring chicken, he’s quick to point out that the ‘big world’ starts early in Brazil.

“I started work when I was 14. That’s not uncommon in Brazil. I began with Volkswagen Passenger cars as a mechanical apprentice. So, I’ve been in the workforce proper for 25 years already.

“The mechanical apprenticeship really sparked my interest, so I continued on into engineering, graduating in industrial engineering with emphasis on mechanical.”

After seven years at Volkswagen, Rafael moved to Traton stablemate, Scania, taking on a completely different role in the sales department, and in 2006 he was appointed sales manager for the Pacific Latin-Americas, an area that included Chile, Peru, and Mexico.

“It was in this role I really began to travel and experience different cultures, and also learning the different dynamics between Scania-owned and privately owned dealerships.”

Moving back into the service side of the business in 2012, he worked in sales engineering and aftersales, a role that encompassed new-product development and workshop set-up. That saw him moving through the broader Pacific region, ensuring workshops met Scania procedures and standards.

The first big overseas post came after six and a half years – services director in India. In a country roughly 12 times the size of New Zealand with 211 times the people, it was here that Alvarenga says he “lived the service side of the business the most”.

“Scania has a strong mining presence in India. In fact, it is our second-biggest mining market. The mines are very remote and often take a day’s travelling to reach. Operations mostly run up to 23 hours a day, seven days a week, so there’s no room for a delay in parts. You don’t want to be having the conversation about ‘Where are my parts?’. Coming from a mix of sales and engineering, I understand that retaining customers is all about reliability, of both the product and the aftersales.


“India was a wonderful experience generally. Not just work, but experiencing the local culture also. Then I came here – starting the New Zealand journey two months ago. It doesn’t matter where you go, the principles are the same. The customer needs uptime, parts availability, and workshop availability.

“I’ve met many New Zealanders through my previous roles – at regional conferences and the like. I’ve also kept a close eye on New Zealand over the past three years as Scania has rolled out the model it has here. It’s been a great success and it’s being looked at for markets in other regions also. I had a real taste of what was going on, even though I never thought I would be coming here. I’m very excited.

“With the lockdowns, I have not got out in the way I want to, but that will come. When we left India in May, they were getting 400,000 cases of Covid a day – you had to be very careful. I understand it’s settled down a lot, and much more under control there.”

Obviously, the key to keeping the wheels turning here is the supply chain. Alvarenga has come from huge countries and now finds himself at the bottom of the world, as far from anywhere as you can get. As Mattias left, Scania NZ was upping its head office parts inventory in Auckland by 20%.

“We are No.1 here in the heavy market over 16,000kg with roughly 20%. It is such hugely competitive market, so that’s a real achievement. What it’s saying is one in five trucks sold in that category is a Scania.

“It’s not unfamiliar to me though. The New Zealand market is very much like Chile, everyone’s there – the Americans, the Europeans, the Asians, as opposed to Brazil, where only a few brands dominate. Scania has been in Brazil for over 60 years so are naturally very strong. In Brazil you know who your competitors are and probably how they’re going to behave. Here and Chile though, there are many competitors, maybe 10 or 12, so you must be on your game.

“Planning is the key to everything. If you plan for all possible scenarios, you can manage them – watch, discuss, and adjust each month. Whenever something might be a problem, put it under the spotlight, then act. Fifty- 100- 200-day plans. If you plan, you won’t be caught by surprise later.

“Yes, supply chain is challenging the world over at the moment, and I tell you, India and Brazil are no different. You constantly look ahead and make sure you have the fat to play with.

Like the family Sunday barbie, Rafael Alvarenga is ready to keep Scania in New Zealand sizzling.

“In terms of other more local challenges, a lack of technicians is a big thing short term for the entire industry. As such, we have some plans on how we are intending to address that, but it is something worth highlighting.”

Of course, no conversation today can end without the future. “Yes, Scania as you know, has a high emphasis on new technologies and sustainability. Next year and the year after are going to be big years for Scania in these areas. We will have a lot to tell you about that very soon.”

And so, there is our new man! Back to the opening sentence about just how interesting the decisionmaking processes are when selecting the right people for international roles. Mattias will be a tough act to chase and, if asked, my suggestion would have been someone with an intense understanding of what’s required to win that second round of sales – the parts, the uptime, the workshops. Someone who also knew a Scania inside and out, who could stand in a service pit with overalls on and tell the owner something cool about his Scania that he never knew.

Seems that was Scania’s thinking also.

BACKYARD COMPARISON – BRAZIL & NEW ZEALAND

Q: Topography?
A: “Actually, Brazil is a vast country [31.6 times the size of New Zealand, with 40 times the peeps], and while there are mountainous areas, so much of it is actually very flat and not difficult at all. As such, not many highway trucks are over 500hp, and tractor semi combinations dominate by far. There’s much more of a formula for trucks – maybe half a dozen proven combinations, and you sell thousands.

“Here, though, it’s almost the opposite. There are thousands of specification options and only a handful of sales of each, so New Zealand is a country that really gets the most from Scania’s modular spec’ing tools. You can build the truck you need – and you do. You build a vast profile of trucks, so our sales support has to be the best. Also, the power, when I saw what came to New Zealand, 620s, 650, 730s, I thought ‘Wow!’ You build big trucks, but you need to because of the topography. It’s a place where we can really put our best to the test.

“If we get everything right here, we know our product and support are top. For someone like me from a sales engineering and support background, I love it!”

Q: Doing business?
A: “In Brazil, it is very similar. You can talk to big customers at a personal level, get to know them and their needs, form real relationships. There’s trust. It’s a great way of doing business

“Internally, too, within the business, it’s a relaxed, fast, and effective way of doing business. As I said, I haven’t travelled all around yet, obviously, but I’ve had meetings with my teams, and it’s very much discuss, agree, and act. Make quick and effective decisions as a team. We still follow all the Scania procedures and processes, but it’s personal. We don’t get caught up too much in hierarchies and being ‘too square’ within that process.

“There’s passion for trucking here, too. I mean real passion. When having meetings with my team, their eyes are bright when talking trucks and engaging with the people who own them. It’s great.”

QUICK-FIRE QUESTIONS

Favourite sport?

“Football. I’m a Brazilian. It’s something my son and I can enjoy together, even though his passion is road cycling. We have bought bikes and so can do that together also.”

[Yeah, we’ll have to sort out that round ball thing all right.]

 

Best way to spend an afternoon?

As a Brazilian, barbecues are in my veins. It’s a Sunday afternoon tradition. Families get together and have a barbie. If you miss one, you don’t miss two! We have salads with our barbecues, though. Does that sound odd to you? Maybe it does? [Nope! That’s how we roll too.]

 

 

 

 

 

Do you enjoy an ale (beer)? If so, what’s your favourite?

“Yes, barbecue and a beer” My favourite is whatever is the coldest! In Brazil, we drink our beers very cold, almost frozen. Not to be too vague, though. There was one called the Presidente from the Dominican Republic. That is the best one I’ve tried ever, but I’m quite open to challenging that.”

 

 

 

 

 

The weather?

“We’ve been really surprised so far. Everyone said, ‘Oh, New Zealand in spring… you’re coming at the worst time, the weather is so unpredictable.’ But no, it’s been really good. There are days where you seem to have all the seasons in one day, but it’s warm and often sunny.”