UPM-Kymmene Aims to Unify Logistics Ops

World's second largest paper producer taps G-Log for solution to optimize shipments across global supply chain

World's second largest paper producer taps G-Log for solution to optimize shipments across global supply chain

Shelton, CT  September 24, 2003  Paper company UPM-Kymmene has selected a solution from G-Log to unify its logistics operations across the company's 100 production facilities worldwide in a bid to reduce costs and automate processes.

Helsinki-headquartered UPM-Kymmene is the world's second largest paper producer, with production in 17 countries and a sales network comprising more than 170 sales and distribution companies. The company's 2002 turnover exceeded $11.4 billion, and it employs close to 36,000 people.

UPM-Kymmene, G-Log and IBM Global Services will partner to integrate G-Log's Web-native Global Command and Control Center (GC3) software into UPM-Kymmene's supply chain to optimize shipments across every leg of the supply chain  regardless of business unit, transportation mode, or geography  as a way of reducing costs through shipment optimization and automated collaborative business processes.

By integrating its disparate transportation network under one umbrella, UPM-Kymmene is looking to establish a logistics execution solution that will be commonly used throughout the company. The G-Log system will provide a single data repository to support multiple users in making real-time decisions based on defined business rules.

Equipped with precise information about the status of all shipments from purchase order through freight settlement, UPM-Kymmene logistics personnel should be able to take immediate action and respond by exception to determine the most streamlined, cost-effective delivery of inbound shipments to the paper mill or outbound finished products to distributors.

When fully deployed, UPM-Kymmene will manage more than 10 million tons of paper shipments per year using the G-Log GC3 software. Phase one of the project, which is a design and blueprint phase, will determine the future configuration of GC3; upon successful completion, it will be followed by a phase preparing for the rollout throughout UPM-Kymmene's paper divisions.

Deployment will consist of a four-phased approach including design, training, integration testing and a pilot implementation launch. Subsequent phases will be deployed on a regional basis to encompass the company's entire global logistics operations.

"G-Log's domain expertise and singular focus on global transportation and logistics were a driving factor in our selection process," said Jussi Sarvikas, vice president of logistics at UPM-Kymmene.

"After a stringent assessment process, including detailed evaluations with a number of competitors, UPM-Kymmene selected the GC3 software to transform its global transportation processes and unite its logistics operations under one umbrella," said David Cairns, CEO of G-Log.