40-41 / 150
UPM Annual Report 2014
UPM Annual Report 2014
37
38
CONTENTS
STAKEHOLDERS 31–44
Pulp
Biofuels
Timber products
Product
range
Softwood, birch and
eucalyptus pulp
Wood-based renewable
diesel for transport
Standard and special
sawn timber
Customer
industries
Tissue, specialty, printing
and writing papers,
as well as packaging
Fuel distributors,
transportation, oil and
petrochemicals industry
Building, construction,
furniture, joinery, packaging
industries
Measurement
of customer
satisfaction
Continuous dialogue,
regular customer surveys
Continuous dialogue and
collection of feedback,
end-user studies
Continuous dialogue and
collection of feedback, annual
customer surveys
Actions
in 2014
•
Sales and marketing
co-operation with
Canfor Pulp
•
Co-marketing events
for customers
•
Increase of pulp
production at all mills
•
Strengthened technical
customer service in
Europe
•
Strengthened sales
in APAC and Europe
•
Supply chain and
operative readiness
in place
•
Strengthening
partnerships with
selected companies
•
Ensuring product
functionality by
comprehensive testing
•
Further focus on strategic
markets and market-
specific weighting
•
Optimisation of raw
material quality and use
Important
corporate
responsibility
topics
Forest certification,
sustainable forestry, water
use and resource efficiency
Reducing greenhouse
gas emissions, biofuels-
specific sustainability
certification, social and
traceability criteria in
targets set by the EU
Renewable Energy
Directive
Chain of custody,
origin of wood and
forest certification
Major
changes
in customer
industries
•
Significant growth of
tissue and packaging
board production
•
Sharp decline of
printing and writing
paper industry in
mature markets
•
China’s role as
the most important
single country for
consumption of pulp
•
Global increase of
advanced biofuel
volumes and demand
•
Waste and residue-
based biofuels are
favoured by both
customers and
legislation
•
Growing importance
of East Europe as a
production area
Energy
UPM Raflatac
UPM Paper Asia
UPM Paper ENA Plywood
Wood Sourcing
and Forestry
Trading in physical and
derivatives electricity
markets
Self-adhesive paper
and film labelstock
Fine papers, office papers,
labelling and packaging
materials
Magazine papers,
newsprint, fine papers
for various end uses
Plywood and veneer
products
Wood and wood-based
biomass (logs, pulpwood,
chips, forest residues etc.),
forest estates and
lakeshore plots
UPM businesses and
electricity supply sector
in the Nordic countries
and Central Europe
Label printers, packers,
brand owners in durables,
tyres, retail, A4, food,
beverage, personal care,
pharmaceutical, retail and
logistics segments
Distributors, retailers, OEMs
(original equipment
manufacturers), printers
and publishers, converters
Newspaper and
magazine publishers,
printers, cataloguers,
retailers, distributors
and converters
Construction, vehicle
flooring, LNG shipbuilding
and parquet industries
All UPM businesses using
wood or wood-based
biomass, forest owners
Continuous dialogue
Continuous dialogue,
customer surveys,
training, customer events
Continuous dialogue,
regular customer surveys
Continuous dialogue,
regular customer
surveys
Continuous dialogue,
bi-annual customer
surveys
Continuous dialogue
and regular customer
surveys
•
Sale of hydropower
from Kymijoki river
power plants to KSS
Energia
•
Strengthen films &
specials offering
•
Optimisation of
production and
distribution network
•
Product development
partnership
•
Improvement of supply
chain efficiency
•
Sustainability and
recycling solutions
•
Launch of a series of new
value-added products and
services
•
Joint development projects
•
Enhancing sustainability
message further
•
Launch of new
products that bring
savings to customers
•
Joint product
development
•
Development of
service offering
•
Improved business
interaction with
customers
•
Sharpened end-use
prioritisation
•
Continuation of
the ongoing work to
improve supply chain
performance and
service
•
Quantifying value
propositions
•
Customer and contract
management
•
Development of supply
chain efficiency and
services
•
Development of a new
way of serving forest
owners
•
Development of web
solutions to improve
customer service
Concern for fishways,
low-emission energy
Product safety, lifecycle
analysis, waste
management, recyclability
and forest certification
Forest certification, origin of
wood, product safety and
resource efficiency
Safety, forest
certification, environ-
mental performance,
supplier audits at mills,
ecolabels, resource
efficiency and financial
stability as a supplier
Forest certification, chain
of custody, product safety
and resource efficiency
Competitive price and
sustainable forestry
•
Structural changes in
the electricity market
•
Growth in personal
care products
•
Retailer and distributor
network development
•
Online shopping
•
Increase in automated
product labelling and
identification
•
Increase in adhesive-
based fastening in
manufacturing
•
Increased use of
composite materials in
materials technology
Fine Papers APAC:
•
Changes in graphics
end uses
•
Increased share of
e-media
•
Quality upgrade in
cut-size business
Labelling materials:
see UPM Raflatac
•
Digitalisation
•
Structural
overcapacity
•
Variations in raw
material availability
and costs
•
Power shift in
global economy
•
Consolidation
•
Increased need for
services, stocks and
short lead times
•
Requirement for forest
certifications has
increased within on-site
construction end use
•
More customer-driven
specifications among
industrial end users
decreasing supplier’s
possibility to
differentiate with
a product
•
Tightened competition
•
New Forest Act and
other legislative
changes impacting
forestry practices
and competitive
environment
in Finland
CUSTOMER COLLABORATION IN UPM’S BUSINESSES
UPM’s businesses vary in the products and
services they offer. Each business has its own
customer management process and way of
interacting with customers. A comprehensive
understanding of the markets, knowledge of
end uses and an appreciation of customers’
needs form the basis of UPM’s customer
relationship management.
UPM’s target is to provide customers with
solutions that improve customers’ business
processes, with a special focus on creating
mutual benefits with increased efficiency. Mat-
ters related to environmental performance are
also at the centre of UPM’s customer offering.
Collaboration with customers
In addition to a continuous working dialogue,
UPM is engaged in various development pro-
jects with customers. Many of the projects are
related to product development, supply chain
efficiency and optimisation, as well as the
co-planning of activities.
Customer satisfaction is measured regularly
in most businesses through customer satisfac-
tion surveys conducted by a third party. Based
on various business customer satisfaction sur-
veys, the overall total satisfaction with UPM
as a supplier is 77% (75%). The surveys act as
a tool for further development, and bring an
important customer dimension to performance
management.
Customers interested
in responsibility
Based on the dialogue and surveys, UPM’s
customers take an interest in the company’s
responsibility performance and the sustainability
of its operations.
Product safety, forest certification and chains
of custody, resource efficiency, safety perfor-
mance and the supply chain are among the most
important topics. The significance of long term
financial performance and profitability of the
supplier have increased.
UPM offers product declarations and
environmental data for most products as a tool
to provide customers with information on the
sustainability of products and the supply chain.
UPM’s interaction with customers
is based on continuous dialogue and
regular customer satisfaction surveys.
UPM offers a wide range of renewable
and recyclable products to be further
processed into a variety of useful
everyday products, and also provides
services that meet the needs of
a versatile range of customers.
Continuous dialogue
and collaboration with customers
Read more on new printing paper UPM Valor
(p. 26), new invisible film labelstock VANISH (p. 22)
and UPM’s co-operation Hamelin Group on ecolabels
(p. 49).
Customers value UPM’s comprehensive
product range, reliability and excellent
environmental performance.