Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Paper Industry
Submitted towards partial evaluation of
Supply Chain Management
Submitted by:
J. Bheemendra Narayan
Roll no: 09
MBA 2014 2016
Hyderabad,
October, 2015.
Table of Contents:
1. Abstract
2. Introduction
3. Supply Chain of Pulp and Paper
Industry
4. Customer Relationship and Order
Penetration Point
5. Importance of Information Technology
in Paper Supply chain
6. Transportation
7. Cost and Efficiency
8. Conclusion
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ABSTRACT:
Purpose The basis of this paper is to analyse current developments in the
theory and practice of supply management in Paper industry and to identify
possibilities and key trends.
Design/methodology/approach A literature review in Operations
Management and Logistics has been conducted for the period 1995-2005.
The objective is to collect and organize existing knowledge relating to SCM.
Originality/value The paper is unique in the path in which it draws on a
precise study to survey current hypothesis and advancements. The value of
this paper is to define SCM, to analyse how supply chain management in this
area has evolved and to identify some lines of further research.
Keywords Supply Chain Management, Logistics
Paper type Literature review
Introduction:
The pulp and paper industry is distinguished by a huge and unsegregated
supply chain. The actual supply chain starts at the forest, then gathering,
mills and to the end customers. Some products used in our everyday life are
newspapers, tissues, bottle labels, cigarette paper. To coordinate all these it
requires supply chain management, which involves outline, alterations and
the business process management. Globally there are around 5000 pulp and
paper mills. United States of America (USA) has got huge market and Asias
major markets are Japan, Singapore, China, India, and Malaysia. For
management of all the processes and providing information, information
systems are very much important. More importance should be given to data
movement between organizations. However, availability of data is not
enough for proper management. Supply chain management requires proper
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Newspaper
Magazines, Catalogues
Packaging paper
Tissues
Paper bags, Paperboard
Source of Fibre:
For the production of a paper, 95% of fibre is used from wood. The fastest
growing Hardwood pulp is found from Eucalyptus. The three different pulp
grades are Bleached Softwood kraft, Bleached hardwood kraft and
Mechanical pulp. The hardwood grade of pulp is widely used for production of
many papers. For magazines and catalogues it helps in providing more
softness to the paper and thereby increasing the printing quality. To make the
paper strong softwood kraft is needed. It is needed at all times like at the
time paper production and then for printing purpose also. And the third type
of pulp grade, mechanical pulp is very much needed for printing newspapers.
So, any fibre cant be used for production of a paper, it is the type of fibre
that is important for production of any type of paper. Generally, Eucalyptus
fibres are short in nature, so these type of fibres are used for getting
smoothness of a paper. Softwood fibres are long in nature, so they are used
for strength of a paper. Even in a single tree, there are different types of
fibres, at the bottom part of the tree we can get long fibres and at the top
part of the tree we will get short fibre, which are used for smoothness.
From a demand point of view, a lot of changes are happening as the paper
industry in Asia is moving fast. As there is not much availability of wood in
this region, most of the production runs on imports. Worldwide, North
America consists of 40% of market and out of that, 60% of production is
exported.
Firstly the trees are cut down and the branches are separated and then they
are made into logs, this process is generally done at harvesting areas itself.
The logs can be directly sent to the mills or they are stored at some places
and from there it will sent to respective mills. Transportation of logs is
separately done by the transport firms and the harvesting is done by the
respective persons.
Making of Pulp:
At this stage, the logs will be converted into chips. The chips from various
logs are mixed depending upon the quality to get a desired product.
Now the chips heated and cleaned and they are separated. Then, they add
bleach to the fibres, to obtain some brightness.
The time taken for converting logs into chips for producing the pulp is twelve
hours. These fibres are then transported to paper mills.
Making of Paper:
Now, a certain width of paper rolls are produced using the paper machines.
Then the rolls are made into pieces using a winder and the rolls are sent to
the respective customers.
The entire production process requires various types of transportation. The
arranging extends from a large portion of a century down to hours and
minutes. The lead time generally varies from five to twelve months.
The entire supply chain can be explained by four stages, they are
Procurement, Production, Distribution and Sales. Procurement is concerned of
getting the raw materials i.e. wood and the other necessary resources.
Production, the wood is converted into chips (intermediaries) and then into a
paper product (finished product). Distribution involves the logistic taking care
of transporting the products for further processing or to the retailers. Sales
includes, the estimation of demand, the prices and prediction.
Transportation:
The transport mode of the finished products is done by train, ship or any
road transport vehicles, depending on the location of the customer. The
customer who is located closer to the mills will have a low freight rate. The
cost can also be reduced, if same truck which brings recovered paper to mills
takes back the finished products to the respective customers.
Conclusion:
Supply chain Management is an important attribute for increasing overall
firms effectiveness and in reaching company goals such better customer
care and profitability.
Therefore, in this manner focus of supply chain management should be on
management of associations and mutual trust of all people involved in
supply chain in order to achieve the best market results.
In order to attain maximum benefits from executing a supply chain
management particular models, like, margin-based production costing,
revenue management and uncertainty models should be integrated in the
supply chain operation.