UPM to renew its paper business supply chain
In order to provide better service to the current business needs, UPM will renew its paper business supply chain. A new supply chain platform will be established in order to create a high performing supply chain which combines operational efficiency and customer focus. As a part of this development plan, UPM is planning to restructure its supply chain operations in Northern and Central Europe to facilitate centralized steering of operations. UPM lans to establish a regional supply chain centre with around 80 positions in Tampere, Finland, and two regional supply chain centers in Germany: one in Augsburg and one in Dörpen with a total of around 180 positions.
Currently, the supply chain operations – production planning, inventory management, order fulfilment, logistics and customer service – are being taken care of in many locations at the paper mills and in the sales offices in these regions. At present, the tasks are currently being done at the Finnish paper mills as well as at the paper customer service in Helsinki and at the company’s paper mills in Austria and Germany and in sales offices in Germany.
“The new platform enables us to further develop our supply chain processes and ways of working. We will be able to increase the efficiency and profitability of our operations. Through more efficient operations we will also be able to further improve our customer service,” says Bernd Eikens, Senior Vice President, Supply Chain, UPM Paper Business Group.
However, as soon as the plan is implemented, the number of employees in the supply chain in Europe will be reduced by about 100 employees during 2009 and 2010.
Furthermore, UPM plans to centralize part of positions within information technology, payroll and human resources to its service centre operating in Tampere, Finland with about 50 positions within payroll and HR services. At present, there are several locations in Finland where these tasks are being done. The plan also includes the transfer of about 30 positions within IT from the neighboring city of Valkeakoski to Tampere.
Employee negotiations on these plans will follow local legislation in the countries. In the negotiation, UPM is prepared to provide support for relocation and other possibilities for retirement, relocation within UPM and retraining will be handled in the negotiations.
UPM’s service centre in Tampere, Finland, was established in 2007 to serve as a service centre for the Group’s global finance and control. There are currently altogether 220 UPM employees working for finance and control, IT, global sourcing and energy business in the service centre. According to the plans, the amount of employees will total around 400 by the end of 2010.
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