Metsä Wood to improve procurement efficiency through reorganisation

Metsä Wood to improve procurement efficiency through reorganisation

Published: 15/02/2016 00:00

Metsä Wood is renewing its purchasing operations and centralising its supplier contract management in its procurement organisation. As part of the process, a purchaser will be assigned for each production unit in Finland. The purchasers will be in charge of day-to-day procurement and supply stock management. The centralisation of procurement operations supports partnership thinking, meaning that purchases will be directed to contractual suppliers and their responsibilities will be increased. In addition, existing information systems will be used more efficiently for example by automating orders and the purchase invoice process.

"The reorganisation of procurement operations is an essential part of our industrial efficiency strategy. Purchases constitute a significant part of our cost structure. By simplifying our operational processes and streamlining responsibilities, we are seeking to improve the productivity and efficiency of our procurement operations by centralising purchases to be covered by consistent agreements. The effects of competitive prices and terms of payment can already be seen as cost savings," says Esa Kaikkonen, Executive Vice President of Metsä Wood.

"Agreements, negotiations and supplier management will be centralised in cooperation with production management and mill managers. The reorganisation of procurement operations means focusing on our core tasks and networking beyond units. We want to enhance the efficiency of our procurement management, as well as improving procurement competence in our organisation. I believe that contract management and a compact procurement organisation will improve our supplier management and internal flow of information," says Jani Riissanen, Senior Vice President, Purchasing at Metsä Wood.


Purchasers appointed for production units as of 1 February 2016:

Kerto mill in LohjaSoili Sinervä-Laine
Punkaharju millsTimo Kinnunen
Suolahti millsJari Hytönen
Kyro sawmillJyri Toivonen
Merikarvia sawmillMika Ruotsalainen
Vilppula sawmillArto Ahonen
Renko and Lappeenranta sawmillsResponsibility for purchases will be transferred gradually to Caverion, our maintenance outsourcing partner
The following people will serve as purchasers alongside their main jobs:
Eskola sawmillJan Finnilä
Hartola glulam millJuha Virtanen
Thermowood production in KaskinenPetri Harju
Pälkäne prefabricated element factoryJari Jokinen