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Securing wood supply volume and abatement of Price Fluctuation for a a high-end paper and board producer

Client situation & approach

Our client is a high-end paper and board producer only utilising virgin fibres. The reliable supply of wood, preferably FSC-certified, is critical for our client. Our client has three main sources of wood, namely: its own forests, international import and wood from private landowners. The latter is secured via an organisation purchasing harvesting rights from private landowners. The set goals were to increase the amount of FSC-certified wood, stabilise price levels and increase volume per purchaser. The tools used included a mixture of Lean Administration, Performance Behaviour and Sales Growth.

Results

  • The effectiveness of the purchasing organisation increased with over 10 %
  • The price fluctuations or rather errors when pricing harvesting rights were reduced to zero
  • The amount of FSC-certified suppliers increased by 26 %