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UPM

Customer Case Study

Implemention of an integrated platform across business lines

Overview

Global process manufacturing organisation with a turnover of €11.3Bn, comprising of three business groups: energy and pulp, engineering materials & paper. Shipping 50,000 containers a year (175,000 TUE) inc. 12,000 tonnes of airfreight, 520,000 truckloads, 52,000 vessel movements and 19,00 rail wagons. UPM was looking for an integrated management platform across all lines of business & leveraging investment made in existing IT systems.

Challenges

• Pressure for process Improvement through a common logistic platform
• Need to realise cost efficiencies through optimisation and shipment planning
• Incorporation of supply & demand allocation as part of on integrated planning & execution system standardisation
• Improve service levels to customers and business units

Solutions

• Oracle Transportation Management (OTM) system implementation across all transport modes: road, ocean & air
• End-to-end implementation – order, planning, execution, reporting
• Integration with multiple systems: Warehouse Management Systems, SAP & legacy applications of sea freight
• Post-implementation support
• Upgraded to 6.2.x

Results

• Single uniform systems across the business
• Savings in legacy systems maintenance
• Reduction in personnel FTE‘s
• Greater centralisation of planning
• Enabled an electronic UPM customs clearance solution Centralisation of data in MIS allowing better logistics purchasing
• Optimisation of ocean booking
• Routing and payload optimisation leading to 5% off transport cost in accumulated net saving
• Access to group transportation contracts to secure best freight rates
• Operational efficiency in transportation planning, both domestic and international
• Ability to track and trace all transports
• Provide information for better inventory management and financial control