Better logistics and service are the two most important future challenges to the paper industry, according to Stora Gruvön. After two years of preparation this Swedish company is now introducing a completely new IT-based supply system. The aim is a considerable reduction in both stocks and delivery times - a profitable goal for all concerned.

Stora Gruvön produces packaging paper. The company's clients in the packaging industry are always themselves under pressure from their own customers to ensure fast delivery. The paper supplier must therefore also do its bit to reduce lead times.
The philosophy currently employed by the paper mill is called "supply chain management". This depends on building up a kind of forecasting system. Through constant reporting of the amounts passing through the customer channel, the mill can improve and refine its planning, production and deliveries.
"Vast amounts of data have to be processed. Without a large investment in IT we would have no chance of handling this task," says Marketing Manager Leif Brodén.
This system, called Reflex, has also made it possible to simplify and speed up administrative procedures. The old-fashioned manual processing of orders, invoices and grammage specifications has now been transferred to an IT base. The client can communicate with the company via the medium it prefers - telephone, fax, Internet, EDI etc. The principal advantage is that the system can be continually expanded and refined.
"A vision of the future is that we could simply collect the data straight from the cash register."
Speedier deliveries mean that both the mill and the client can reduce the size of their stocks. This cuts down the amount of capital tied-up. One calculation shows that clients could double their profit margins by using Reflex; money that can then be used instead for investment in new technology, for example, or for product development.
According to Leif Brodén the reaction from customers is positive. They understand, of course, that it can take time to implement a complete change in the system, but on the other hand the traditional form-filling procedures take even longer.
Many companies in the packaging industry are subsidiaries integrated into the paper-manufacturing groups. A large proportion of Stora Gruvön's clients are however independent companies.
"We would like to see these packaging companies enjoying the same benefits as their integrated counterparts," confirms Mr. Brodén.
Faster deliveries also mean a higher rate of warehouse turnover. The company's own minimum target is 20 times. Another aim is that 50% of the turnover shall be sold via Reflex within three years. The 1998 target is 20%.

Stora Gruvön is part of Stora Paperboard, itself a member of the Stora Group. Annual production sales are 500,000 tons of paper and 100,000 tons of paper pulp. The products are mainly used for packaging, particularly within the food products industry. The company has 1,250 employees.


Captions
1. A great deal of money is tied up by stock in hand. This new delivery system permits the release of this capital, with a consequent higher profit margin.
2. Faster deliveries make money for both the manufacturer and the client. IT technology is here opening up completely new possibilities.

For further information, please contact:
UNITED KINGDOM
Stora Paperboard UK Ltd
David Hargreaves, Manager
11th Floor, Newland House, 49 Mount Street
GB-Nottingham NG1 6HE
Tel. 0115 948 43 44; Fax: 0115 948 43 51
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BELGIUM:
Stora Belgium NV/SA
Frans op de Beeck, Sales Manager
Airport Business Center
Vuurberg 80, BE-1831 MACHELEN(Diegem)
Tel.: 027 15 05 00; Fax: 027 15 05 19

DENMARK
H.H. Andersen & Co. A/S
Adm. dir. Finn Hegner
Postboks 51, DK-2630 Tåstrup
Tel: 43 99 80 22; Fax: 43 99 63 99

FRANCE
Stora Paperboard France SA
4ème étage, 56 Quai de Dion-Bouton
FR-928 06 PUTEAUX CEDEX
Tel: 01 49 06 47 00; Fax: 01 49 06 47 89

GERMANY
Stora Paperboard Hamburg GmbH
Vertriebsleiter Heinrich Ohlendorf
Schillerstraße 44, D-227 67 Hamburg
Tel. 040 389 10 20; Fax 040 38 77 69

HONG KONG
Stora Hong Kong Ltd
Kenneth Nystén, Managing Director
GPO Box 789, HONG KONG
Tel: 023 12 12 23; Fax: 027 24 51 81

IRELAND
Stora Ireland Ltd
David Gorman, Managing Director
21 Clanwilliam Square, Grand Canal Quay, IRL-DUBLIN
Tel: 01 661 82 85; Fax: 01 661 82 91

ITALY
Stora Italia S.r.l
Arnaldo Ferrari, Direttore Generale
Via Volta 16, I-200 93 COLOGNE MONZESE (MI)
Tel. 02-253 83 63; Fax. 02-253 80 99

NETHERLANDS
Stora Nederland BV
Gerrit-Kees Brouwer, manager/Anneke Groen
Delflandlaan 15, NL-1062 EA Amsterdam
Tel: 020-408 93 93; Fax: 020- 408 93 00

SINGAPORE
Stora Singapore Pte Ltd
Kurt E Mönnich, Managing Director
1 Grange Road # 05-03
Orchard Building
SG-SINGAPORE 239693
Tel: 0838 98 66; Fax: 0838 98 77

SWEDEN
Stora Paperboard AB; Stora Gruvön
Leif Brodén
Box 500
SE-664 28 GRUMS
Tel: +46 555-41000; Fax: +46 555-41085
E-mail: leif.broden@stora.se

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