Newsprint Demand and Supply Scenarios

Diplomityön tavoitteena oli sanomalehtipaperin kysyntään ja tarjontaan vaikuttavien tekijöiden identifiointi ja analysointi. Nämä tekijät käytiin yhteisesti läpi skenaarioiden avulla. Aluksi kuvattiin teollisuuden ala ja esiteltiin tärkeimmät alaa kuvaavat mittarit. Analyysi tehtiin Porterin kilpailuteorian tekijöiden pohjalta. Työssä listattiin yksittäiset tekijät, jotka vaikuttavat sanomalehtipaperin kysyntään ja tarjontaan. Näistä tekijöistä valittiin tärkeimmät ja niiden pohjalta rakennettiin skenaarioita. Skenaariot kuvaavat erilaisia mahdollisia tulevaisuuksia.Kysyntä kuten myös tarjonta on jakautunut epätasaisesti maailmassa. Alueelliset erot ovat hyvinkin merkittäviä. Tästä johtuu laajamittainen kaupankäynti eri alueiden välillä. Käynnissä oleva paperiteollisuuden konsolidoitumisprosessi auttaa vähentämään sanomalehtipaperin hinnan ja tarjonnan heilahtelua. Tämä puolestaan johtuu alan keskittymisestä ja järkevästä kapasiteetin hallinnasta.Diplomityö korostaa sanomalehtipaperin tuottajien vastuuta tarjonnan lisäämisessä. E-median uhkaa tai mahdollisuutta on myös spekuloitu ja kysynnän alueellisen kysynnän kehitystä on analysoitu. Diplomityö antaa ehdotuksia erilaisiksi tulevaisuuden kehitysvaihtoehdoiksi. Sanomalehtipaperin kysyntä tulee kasvamaan maailmanlaajuisesti, tuotanto tulee siirtymään lähemmäksi markkinoita, kaupankäynti Aasiaan tulee kasvamaan ja yrityksen tulevat keskittymään viisaaseen kapasiteetin hallintaan.

Logging residues from regeneration fellings for biofuel production - a GIS-based availability and supply cost analysis

Finland has large forest fuel resources. However, the use of forest fuels for energy production has been low, except for small-scale use in heating. According to national action plans and programs related to wood energy promotion, the utilization of such resources will be multiplied over the next few years. The most significant part of this growth will be based on the utilization of forest fuels, produced from logging residues of regeneration fellings, in industrial and municipal power and heating plants. Availability of logging residues was analyzed by means of resource and demand approaches in order to identify the most suitable regions with focus on increasing the forest fuel usage. The analysis included availability and supply cost comparisons between power plant sites and resource allocation in a least cost manner, and between a predefined power plant structure under demand and supply constraints. Spatial analysis of worksite factors and regional geographies were carried out using the GIS-model environment via geoprocessing and cartographic modeling tools. According to the results of analyses, the cost competitiveness of forest fuel supply should be improved in order to achieve the designed objectives in the near future. Availability and supply costs of forest fuels varied spatially and were very sensitive to worksite factors and transport distances. According to the site-specific analysis the supply potential between differentlocations can be multifold. However, due to technical and economical reasons ofthe fuel supply and dense power plant infrastructure, the supply potential is limited at plant level. Therefore, the potential and supply cost calculations aredepending on site-specific matters, where regional characteristics of resourcesand infrastructure should be taken into consideration, for example by using a GIS-modeling approach constructed in this study.

The demand-supply balancing process in supply chain management - case mining & metals industry equipment

The aim of this thesis is to search how to match the demand and supply effectively in industrial and project-oriented business environment. The demand-supply balancing process is searched through three different phases: the demand planning and forecasting, synchronization of demand and supply and measurement of the results. The thesis contains a single case study that has been implemented in a company called Outotec. In the case study the demand is planned and forecasted with qualitative (judgmental) forecasting method. The quantitative forecasting methods are searched further to support the demand forecast and long term planning. The sales and operations planning process is used in the synchronization of the demand and supply. The demand forecast is applied in the management of a supply chain of critical unit of elemental analyzer. Different meters on operational and strategic level are proposed for the measurement of performance.

Capability matrix – Identifying and evaluating the key capabilities of purchasing and supply management

Organizations gain resources, skills and technologies to find out the ultimate mix of capabilities to be a winner in the competitive market. These are all important factors that need to be taken into account in organizations operating in today's business environment. So far, there are no significant studies on the organizational capabilities in the field of PSM. The literature review shows that the PSM capabilities need to be studied more comprehensively. This study attempts to reveal and fill this gap by providing the PSM capability matrix that identifies the key PSM capabilities approached from two angles: there are three primary PSM capabilities and nine subcapabilities and, moreover, the individual and organizational PSM capabilities are identified and evaluated. The former refers to the PSM capability matrix of this study which is based on the strategic and operative PSM capabilities that complement the economic ones, while the latter relates to the evaluation of the PSM capabilities, such as the buyer profiles of individual PSM capabilities and the PSMcapability map of the organizational ones. This is a constructive case study. The aim is to define what the purchasing and supply management capabilities are and how they can be evaluated. This study presents a PSM capability matrix to identify and evaluate the capabilities to define capability gaps by comparing the ideal level of PSM capabilities to the realized ones. The research questions are investigated with two case organizations. This study argues that PSM capabilities can be classified into three primary categories with nine sub-categories and, thus, a PSM capability matrix with four evaluation categories can be formed. The buyer profiles are moreover identified to reveal the PSM capability gap. The resource-based view (RBV) and dynamic capabilities view (DCV) are used to define the individual and organizational capabilities. The PSM literature is also used to define the capabilities. The key findings of this study are i) the PSM capability matrix to identify the PSM capabilities, ii) the evaluation of the capabilities to define PSM capability gaps and iii) the presentation of the buyer profiles to identify the individual PSM capabilities and to define the organizational PSM capabilities. Dynamic capabilities are also related to the PSM capability gap. If a gap is identified, the organization can renew their PSM capabilities and, thus, create mutual learning and increase their organizational capabilities. And only then, there is potential for dynamic capabilities. Based on this, the purchasing strategy, purchasing policy and procedures should be identified and implemented dynamically.

Purchasing and supply management capabilities in Finnish medium-sized enterprises

Purchasing and supply management (PSM) has become increasingly important for companies to survive in current highly competitive market. Increased outsourcing has extended the role of PSM, making external resource management and supplier relationships critical success factors in business. However, the recent research has mainly concentrated on large enterprises. Therefore the PSM issues related to medium-sized enterprises represent a significant research area. The thesis aims to explore the status and role of PSM in Finnish medium-sized firms, understand how strategic companies consider PSM to be, clarify what are the competence requirements for PSM professionals, and increase the understanding of PSM capabilities needed from the points view of individual competence and organisational capabilities. The study uses data that was collected in 2007 from purchasing executives at the director/CEO level representing a sample of 94 Finnish firms. 54 % of the respondent enterprises had a supply strategy. The total supply cost was on average 60 % of firms' turnover. Centralisation of PSM and outsourcing of logistics will increase in Finnish medium-sized enterprises. The findings point out that Finnish medium-sized enterprises had strategical features of PSM. However, Finnish firms have not concentrated on making strategies that relate to PSM. The elements that explain the existence of a supply strategy could be found in this study. It can be concluded from this study that there is an advantageous base for the development of strategic PSM, because nearly all the enterprises were of the opinion that PSM capabilities have an effect on business success. When reviewing the organisational capabilities, the five most important development elements were supplier relationships, both operational and strategic processes, time management, and personnel's competence. Training in internationalisation, strategic management, and communication could help to improve competences of PSM personnel.

Contract manufacturing networks structure and supply chain management

The usual objectives that companies have for subcontracting are studied in this thesis. The case company’s objectives for contract manufacturing now and in the future are identified. The main objective of the thesis is to create a focused model for the structure and supply chain management in the contract manufacturing network. This model is made for case company’s certain profit center. The different possibilities and their advantages and disadvantages for the structure and supply chain management are examined trough a theoretical review of literature. The possibilities found are then examined from the case company’s point of view. The case company point of view is established based on the opinions of the case company’s representatives. The outcome of the thesis is that the star shaped structure with supply chain management centralized to case company would be the best choice for the case company to manage the contract manufacture network.

Role of Capabilities in Purchasing and Supply Management Performance

The objective of this thesis was to study the role of capabilities in purchasing and supply management. For the pre-understanding of the research topic, purchasing and supply management development and the multidimensional, unstructured and complex nature of purchasing and supply management performance was studied in literature review. In addition, a capability-based purchasing and supply management performance framework were researched and structured for the empirical research. Due to the unstructured nature of the research topic, the empirical research is three-pronged in this study including three different research methods: the Delphi method, semi-structured interview, and case research. As a result, the purchasing and supply management capability assessment tool was structured to measure current level of capabilities and impact of capabilities on purchasing and supply management performance. The final results indicate that capabilities are enablers of purchasing and supply management performance, and therefore critical to purchasing and supply performance.

Business on demand and its mobile solution - study with SAP ByDesign

Business On-Demand solutions are widely used by SMEs in the world today. When I started working in SAP, SAP had just launched its first version mobile solutions for Business On-Demand solutions. SAP ByDesign mobile solution is great, but I believe we could do something even better on mobile phones. My job is focusing on mobile application development. Therefore, I have lots of thoughts about how we could make the mobile solutions better serve desktop solutions and how to distinguish the mobile solutions. Finally I decide to have a further research into this area. The purpose of this thesis is trying to find out how to improve the mobile solutions for Business On-Demand, find out its benefit and limits, and distinguish SaaS mobile solutions from desktop ones. In order to conduct this research, I had some online literature search to find out the Business On-Demand market and major players in this area. I compare the materials from public internet with the ones that are used internally in SAP. I had some interviews with SAP solution manager and SAP‟s potential customers. I finally made some pro-posals for mobile SaaS solutions which I believe will make the solutions better present and much helpful to the customers.

The effects of location, feedstock availability, and supply-chain logistics on the greenhouse gas emissions of forest-biomass energy utilization in Finland

Forest biomass represents a geographically distributed feedstock, and geographical location affects the greenhouse gas (GHG) performance of a given forest-bioenergy system in several ways. For example, biomass availability, forest operations, transportation possibilities and the distances involved, biomass end-use possibilities, fossil reference systems, and forest carbon balances all depend to some extent on location. The overall objective of this thesis was to assess the GHG emissions derived from supply and energy-utilization chains of forest biomass in Finland, with a specific focus on the effect of location in relation to forest biomass’s availability and the transportation possibilities. Biomass availability and transportation-network assessments were conducted through utilization of geographical information system methods, and the GHG emissions were assessed by means of lifecycle assessment. The thesis is based on four papers in which forest biomass supply on industrial scale was assessed. The feedstocks assessed in this thesis include harvesting residues, smalldiameter energy wood and stumps. The principal implication of the findings in this thesis is that in Finland, the location and availability of biomass in the proximity of a given energyutilization or energy-conversion plant is not a decisive factor in supply-chain GHG emissions or the possible GHG savings to be achieved with forest-biomass energy use. Therefore, for the greatest GHG reductions with limited forest-biomass resources, energy utilization of forest biomass in Finland should be directed to the locations where most GHG savings are achieved through replacement of fossil fuels. Furthermore, one should prioritize the types of forest biomass with the lowest direct supply-chain GHG emissions (e.g., from transport and comminution) and the lowest indirect ones (in particular, soil carbon-stock losses), regardless of location. In this respect, the best combination is to use harvesting residues in combined heat and power production, replacing peat or coal.

Management of Soft Information in Sales and Operations Planning

With a Sales and Operations Planning (S&OP) process, a company aims to manage the demand and supply by planning and forecasting. The studied company uses an integrated S&OP process to improve the company's operations. The aim of this thesis is to develop this business process by finding the best possible way to manage the soft information in S&OP, whilst also understanding the importance and types (assumptions, risks and opportunities) of soft information in S&OP. The soft information in S&OP helps to refine future S&OP planning, taking into account the uncertainties that affect the balance of the long-term demand and supply (typically 12-18 months). The literature review was used to create a framework for soft information management process in S&OP. There were not found a concrete way how to manage soft information in the existing literature. In consequence of the poor literature available the Knowledge Management literature was used as the base for the framework creation, which was seen in the very same type of information management like the soft information management is. The framework created a four-stage process to manage soft information in S&OP that included also the required support systems. First phase is collecting and acquiring soft information in S&OP, which include also categorization. The categorization was the cornerstone to identify different requirements that needs to be taken into consideration when managing soft information in S&OP process. The next phase focus on storing data, which purpose is to ensure the soft information is managed in a common system (support system) in a way that the following phase makes it available to users in S&OP who need by help of sharing and applications process. The last phase target is to use the soft information to understand assumptions and thoughts of users behind the numbers in S&OP plans. With this soft management process the support system will have a key role. The support system, like S&OP tool, ensures that soft information is stored in the right places, kept up-to-date and relevancy. The soft information management process in S&OP strives to improve the relevant soft information documenting behind the S&OP plans into the S&OP support system. The process offers an opportunity to individuals to review, comment and evaluate soft information in S&OP made by their own or others. In the case company it was noticed that without a properly documented and distributed soft information in S&OP it was seen to cause mistrust towards the planning.

Explaining the Shifts of International Trade in Pulp and Paper Industry

The pulp and paper industry is currently facing broad structural changes due to global shifts in demand and supply. These changes have significant impacts on national economies worldwide. In this paper, we describe the recent trends in the pulp and recovered paper (RP) production, and estimate augmented gravity models of bilateral trade for chemical pulp and RP exports with panel data. According to our results, there is some variation in the effects of the traditional gravity-model variables between pulp grades and RP. The results imply also that, in comparison to export supply, import demand plays a larger role in determining the volume of exports. Finally, it is evident that Asia, particularly China, is the most important driver of chemical pulp and RP trade: China is hungry for fiber, and must import to satisfy its growing needs. Moreover, the speed of China’s growth in chemical pulp and RP imports has been driving the increased significance of planted forests in the exports of hardwood pulp (BHKP) as well.

Structural dynamics in the global pulp and paper industry

The pulp and paper industry is currently facing broad structural changes due to global shifts in demand and supply. These changes have significant impacts on national economies worldwide. Planted forests (especially eucalyptus) and recovered paper have quickly increased their importance as raw material for paper and paperboard production. Although advances in information and communication technologies could reduce the demand for communication papers, and the growth of paper consumption has indeed flattened in developed economies, particularly in North America and Western Europe, the consumption is increasing on a global scale. Moreover, the focal point of production and consumption is moving from the Western world to the rapidly growing markets of Southeast Asia. This study analyzes how the so-called megatrends (globalization, technological development, and increasing environmental awareness) affect the pulp and paper industry’s external environment, and seeks reliable ways to incorporate the impact of the megatrends on the models concerning the demand, trade, and use of paper and pulp. The study expands current research in several directions and points of view, for example, by applying and incorporating several quantitative methods and different models. As a result, the thesis makes a significant contribution to better understand and measure the impacts of structural changes on the pulp and paper industry. It also provides some managerial and policy implications.

Kansainvälisen suunnitteluprojektin malliproseduuri ja riskit - Case Viro

Useissa suomalaisissa rakennus- tai suunnitteluyrityksissä on selkeät tavoitteet ja odotukset liiketoiminnan kasvulle. Kasvun mahdollisuudet kotimarkkinoilla ovat rajalliset. Liiketoiminnan kasvua on haettava kotimarkkinoiden ulkopuolelta.Liiketoiminnan kasvua haettaessa alan yritykset ovat nopeasti kansainvälistyneet ja etabloituneet lähialueille. Erityisesti etabloitumista on tapahtunut Baltiaan, Viroon. Heräte tämän työn tekemiseen syntyi case-yrityksentoimenpiteistä kansainväistymisessä ja etabloitumisen aiheuttamasta oletettua suuremmasta kustannusten kehittymisestä. Tutkimuksella ja toimenpiteillä tuetaan etabloitumiskehitystä ja parannetaan liiketoimintaprojektin kustannustehokkuutta. Tutkimuksen tavoitteena oli case-yrityksen toimitusprosessin kuvaaminen, suositeltavan toimitusmallin rakentaminen liiketoimintaprojektille ja kohdemaan riskien kuvaaminen projektiriskikartalle. Kansainvälisen projektiliiketoiminnan erityispiirteitä ovat toimintaympäristön ja asiakkaiden erilaisuus, erilaiset pelisäännöt ja tavat toimia, erilainen kulttuuri ja arvot, tuntematon markkinoiden kysyntä- ja tarjontatilanne. Kansainvälisessä projektiliiketoiminnassa joudumme sopeutumaan ja sopeuttamaan totuttua toimintaamme toisenlaisiin olosuhteisiin. Toisenlaisista olosuhteista johtuen kotimarkkinoille ja kotimaisiin asiakastoimituksiin laadittuun toimintajärjestelmään kuvattu prosessimalli ei sellaisenaan ole toimiva. Samanaikaisesti riskikartta muodostuu kohdemaasta johtuen hyvin erilaiseksi. Tutkimuksen lähtökohta oli toisenlaisesta markkinasta, valituista toimitusprojekteista ja kokemuksesta oppiminen. Tutkimuksen tuloksena rakentui liiketoimintaprojektimalli, joka on selkeästivaiheistettu, roolitettu ja vastuutettu. Lisäksi toisenlaisista markkinoista ja projektimallista johtuen kuvattiin kohdemaan projektiriskikartta. Tutkimuksessa kuvattu liiketoimintaprojektimalli ja kohdemaan mukainen projektiriskikartta toimivat yrityksen seuraavana kehitysaskeleena toiminnan vakauttamisessa. Henkilöstön roolia ja kumppanuuksia tulee kuitenkin jatkossa tarkastella. Työn tuloksena syntyi yksittäisen yrityksen liiketoimintaprojektimallin projektiosien ja roolien kuvaus sekä riskikartta. Työn tuloksen arvioidaan selkeyttävän yrityksen liiketoimintaa ja osaltaan varmistavan yrityksen kansainvälisen liiketoiminnan tavoitteiden saavuttamista.

Logistiikkavaraston henkilöstökustannusten optimointi

Tämän diplomityön tavoitteena on case-esimerkin kautta tutkia, kuinka hyvin vähittäiskaupan logistiikkavarastossa pystytään sovittamaan yhteen työn kysyntä ja tarjonta ja mikä on vuokratyövoiman rooli tässä yhtälössä. Diplomityössä käsitellään logistiikkavaraston työmäärän ennustettavuutta, työvoiman joustavuutta, lasketaan vertailukelpoiset kustannukset eri henkilöstöryhmille sekä esitetään ehdotuksia kokonaiskustannusten optimoimiseksi. Diplomityössä käy ilmi, että tutkittavassa yrityksessä henkilöstöresurssien käyttö ei ole aivan optimaalinen, vaan että tehdyistä työtunneista jopa 21% on ylimääräisiä, mikä aiheuttaa vuosittain 1,0 miljoonan euron kustannushukan. Tämä johtuu sekä työmäärän epätasaisesta jakautumisesta kuukausien kesken, että työvoimatarpeen heikosta suunnittelusta. Työmäärän vaikeasta ennustettavuudesta johtuen turhia työtunteja ei ole mahdollista kokonaan poistaa, mutta hyvällä etukäteissuunnittelulla henkilöstökustannuksia pystytään laskemaan noin 13%. Henkilöstöryhmistä tehtyjen vertailulaskelmien perusteella ylitöiden teettäminen vakituisella henkilökunnalla osoittautuu kannattamattomaksi. Määräaikaisen henkilöstön käyttäminen on kustannuksiltaan edullista, mutta mahdollista vain, jos työvoiman tarve on tilapäinen ja tiedossa hyvissä ajoin etukäteen. Vuokratyövoima on tuntikustannukseltaan kalliimpaa, mutta sen nopea saatavuus mahdollistaa työvoiman entistä paremman sopeuttamisen työn kysynnän mukaan. Kun vuokratyövoimaa on saatavilla, ei varastolla tarvitse pitää ylimääräistä työvoimaa nopeiden työmäärän muutosten varalta.