Improving Inventory Management in a Paper Supply Chain : UPM Sales
Lammi, Anna (2017)
Lammi, Anna
Tampereen ammattikorkeakoulu
2017
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017061313397
https://urn.fi/URN:NBN:fi:amk-2017061313397
Tiivistelmä
UPM is one of the leading forest industry companies of the world. In the competitive business environment of today the agility of companies is emphasized all the time. Modern day supply chains are under continuous need for transformation in order to increase their agility to serve their markets better. Having the best product is not anymore enough, but companies need to be able to deliver it to customers faster, cheaper and more reliable. It is crucial that the companies are able to manage their operations efficiently and improve them continuously.
The target of this research was to find out how the amount of working capital tied to non-sound CMR paper inventories of UPM could be reduced. It concentrated on studying current processes and their efficiency, gathering ideas to improve the current status of the problem and making suggestions how the problem could be proactively prevented in the future. The qualitative information used to analyze the problem was collected in form of interviews from people working with inventory topics daily, both in supply chain and at mill sites.
During the study significant improvements in the non-sound inventory level of the company were achieved. Particularly raising awareness of the problem and improving communication seemed to be key points to lead to a reduction in the inventory levels. Common targets were set as well as reporting to follow the development of the inventories. An atmosphere of continuous improvement was established and the targets set to this study were doubled thanks to active participation of all parties. The outcomes of this research show that with engagement of relevant people substantial results could be achieved and because of that also the financial performance was improved.
The target of this research was to find out how the amount of working capital tied to non-sound CMR paper inventories of UPM could be reduced. It concentrated on studying current processes and their efficiency, gathering ideas to improve the current status of the problem and making suggestions how the problem could be proactively prevented in the future. The qualitative information used to analyze the problem was collected in form of interviews from people working with inventory topics daily, both in supply chain and at mill sites.
During the study significant improvements in the non-sound inventory level of the company were achieved. Particularly raising awareness of the problem and improving communication seemed to be key points to lead to a reduction in the inventory levels. Common targets were set as well as reporting to follow the development of the inventories. An atmosphere of continuous improvement was established and the targets set to this study were doubled thanks to active participation of all parties. The outcomes of this research show that with engagement of relevant people substantial results could be achieved and because of that also the financial performance was improved.