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LIKU-8207 Supply Chain Management
Analysis of Finnpaper Oyj.
GROUP 4 232827 Brenno Damian brenno.damian@tut.fi 233001 José Raúl Berlanga Zárate raul.berlangazarate@tut.fi xxxxxx Subodh Agnihotri subodh.agnihotri@tut.fi xxxxxx Iqbal
1. Analysis of Mr. Lohikoski’s proposal from the perspective of customer-oriented supply chain.
In today’s world, in order to save costs, many business people often demand single contacts. Customer-oriented single sourcing reduces business-to-business interfaces and shortens response time for varying demands, since customers are often located in other countries and may have entirely different cultures. (Steinrücke & Jahr. 2012)
Though by definition the above mentioned focuses on the end of the supply chain, i.e. interaction with customer and all that is related to it, we can well apply it to the beginning of the supply chain, and more specifically to the Finnpaper proposal of Mr. Lohikoski, which focuses on reducing the number of parties regarding transportation from paper mills to Port, by directly reducing the number of ports used.
The main idea of Mr. Lohikoski’s proposal is to use the ports at Rauma and Kotka for all its outbound logistics, rather than using multiple ports around the coast of Finland. This has many advantages from the perspective of customer in the total supply chain. The main advantage is the centralization of the operations from the mill to port. Since the sea freight and port operating costs of Kotka and Rauma are reasonably low, it would be beneficial to concentrate all the outbound transport to these ports. Also, this would lead to the use of rail and road transportation, which are also the cheapest modes available. It would thus result in lower warehousing costs between the mill and the port. All the cost savings gained from the above changes in operations, would directly lead to optimization in the total supply chain.
The main goal in the
LIKU-8207 Supply Chain Management
Analysis of Finnpaper Oyj.
GROUP 4 232827 Brenno Damian brenno.damian@tut.fi 233001 José Raúl Berlanga Zárate raul.berlangazarate@tut.fi xxxxxx Subodh Agnihotri subodh.agnihotri@tut.fi xxxxxx Iqbal
1. Analysis of Mr. Lohikoski’s proposal from the perspective of customer-oriented supply chain.
In today’s world, in order to save costs, many business people often demand single contacts. Customer-oriented single sourcing reduces business-to-business interfaces and shortens response time for varying demands, since customers are often located in other countries and may have entirely different cultures. (Steinrücke & Jahr. 2012)
Though by definition the above mentioned focuses on the end of the supply chain, i.e. interaction with customer and all that is related to it, we can well apply it to the beginning of the supply chain, and more specifically to the Finnpaper proposal of Mr. Lohikoski, which focuses on reducing the number of parties regarding transportation from paper mills to Port, by directly reducing the number of ports used.
The main idea of Mr. Lohikoski’s proposal is to use the ports at Rauma and Kotka for all its outbound logistics, rather than using multiple ports around the coast of Finland. This has many advantages from the perspective of customer in the total supply chain. The main advantage is the centralization of the operations from the mill to port. Since the sea freight and port operating costs of Kotka and Rauma are reasonably low, it would be beneficial to concentrate all the outbound transport to these ports. Also, this would lead to the use of rail and road transportation, which are also the cheapest modes available. It would thus result in lower warehousing costs between the mill and the port. All the cost savings gained from the above changes in operations, would directly lead to optimization in the total supply chain.
The main goal in the
References: Steinrücke, M. & Jahr, M. 2012. Tactical planning in supply chain networks with customer oriented single sourcing. The International Journal of Logistics Management, Vol. 23 Iss: 2 pp. 259 - 279 Lyly-Yrjänäinen, J. & Velázquez, S. & Suomala, P & Uusitalo, O. Introduction to Industrial Management, Know Your Numbers! Tampere University of Technology. Department of Industrial Management. 2010.