Supply Chain

Topics: Paper, Supply chain management, Papermaking Pages: 44 (13450 words) Published: March 24, 2013
Supply Chain Management in the Pulp and Paper Industry

Dick Carlsson Södra Cell International AB, SE-351 89 Växjö, Sweden Sophie D’Amours FOR@C, CIRRELT, Université Laval, G1K 7P4, Québec, Canada Alain Martel FOR@C, CIRRELT, Université Laval, G1K 7P4, Québec, Canada Mikael Rönnqvist The Norwegian School of Economics and Business Administration, NO-5045 Bergen, Norway

October 2006

Working Paper DT-2006-AM-3

Interuniversity Research Center on Enterprise Networks, Logistics and Transportation (CIRRELT), Université Laval, Québec, G1K 7P4, Canada

© CIRRELT, 2006

Supply Chain Management in the Pulp and Paper Industry


The pulp and paper industry depends on a long and integrated supply chain. It starts in forest harvest areas as trees and ends as multiple products used in all persons daily usage. The lead time from the first step to the last is long and it involves many steps operated by several companies and organizations. In this overview paper we describe the overall supply chain, its participants and the planning problems arising along the chain. We divide the planning problems into strategic, tactical and operative in a supply chain matrix and describe their characteristic and provide applications as illustrations. We discuss the need for information and decision support for planners in each of these areas. This relates to planning within a single company as well as integrated planning across several. A number of tailor-made systems has been developed and published in the literature and we describe these tools/systems together with their characteristics and results. To conclude with a discussion around current issues and outline future research areas.



Supply Chain Management in the Pulp and Paper Industry

1. Introduction
The pulp and paper industry produces a great number of paper and other cellulose based fibre products. The total quantity of cellulose-based products consumed every year world-wide exceeds 360 million tonnes. News papers, copy papers, various types of tissue, bottle labels, cigarette papers, and coffee filters are just a few examples of products regularly used in our everyday life. There is a large number of activities involved in the chain behind these products; from planting of the seeds of the trees producing the cellulose, until the product is used by the final consumer, and subsequently disposed of or recycled. Such a network of activities is known as a supply chain (SC) in the management and operations research literature. The interest for the supply chain perspective has increased over the recent years. Information systems, such as Enterprise Resource Planning (ERP) systems, are now crucial for the management of most companies by providing updated information about the various parts of the chain within a company. The information flow between organizations is an area which still needs further attention. Having information available is, however, not sufficient for appropriate management. Managing the supply chain involves a great deal of planning on different levels. Many of the ERP-systems offer some planning and decision support, and in addition there are commercial packages specialized for the purpose. However, commercially available planning support is not able to deal with all the planning problems of the pulp and paper supply chain. In addition there are research and development projects reported in the Operations Research (OR) literature to support the development of advanced Decision Support Systems (DSS). Stadtler and Kilger (2005) provide an overview of supply chain management and planning systems. They give definitions and describe the structure of the supply chain. Different advanced supply chain planning concepts are explored and different commercial advanced planning and scheduling systems (APS) are given as examples. The authors also give some implementation examples, however not from the pulp and paper industry. Stadtler (2004)...
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