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UPM Annual Report 2015
49
contents
Collaborating
with customers
Pulp
Biofuels
Timber products
Product
range
Softwood, birch and
eucalyptus pulp
Wood-based renewable
diesel and gasoline for
transport
Standard and special
sawn timber
Customer
industries
Tissue, specialty, printing
and writing papers and
packaging
Fuel distributors, transporta-
tion, oil and petrochemicals
industry
Joinery, packaging,
distribution and construction
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,
customer satisfaction
survey every second year
Actions
in 2015
•
Co-marketing and best
practice sharing on sustain-
ability with customers
•
Increased pulp production
and bailing capacity at
Kymi mill
•
Strengthened supply chain
•
Strengthened technical
customer service in Europe
•
Strengthened sales in
APAC and Europe
•
Commercial production
and deliveries started
in January
•
Launch of UPM BioVerno
renewable diesel to
consumers in Finland
•
Ensuring product
functionality by
comprehensive motor
and fleet testing
•
Further focus on strategic
markets and market-
specific weighting
•
Customer categorisation
and customer specific
account plans
•
Optimisation of raw
material quality
and usage
•
Delivery accuracy
Important
corporate
responsibility
topics
Safety, forest certification,
sustainable forestry,
environmental performance
of mills, water use and
resource efficiency
Reducing greenhouse gas
emissions and tailpipe
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
•
Growth of tissue and
packaging board production
•
Continued decline of
printing and writing paper
industry in mature markets
•
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
•
Instability and financial
challenges in Egyptian
market
Energy
UPM Raflatac UPM Paper Asia
UPM Paper ENA Plywood
Wood Sourcing
and Forestry
Electricity and related
services
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, thermoformable
wood material
Wood and wood-based
biomass (logs, pulpwood,
chips, forest residues etc.),
full forestry service
package offering
Nordic market: Industrial
consumers, electricity
distributors and retailers
Label printers, packers,
brand owners in durables,
tyres, retail, A4, food,
beverage, personal care,
pharmaceutical, retail
and logistics segments
Distributors, retailers,
OEMs (original equipment
manufacturer), printers, publishers
and converters
Newspaper and
magazine publishers,
printers, cataloguers,
retailers, distributors
and converters
Construction, vehicle
flooring, LNG shipbuilding
and parquet industries as
well as furniture and other
manufacturing industries
All UPM businesses using
wood or wood-based
biomass, forest owners
Continuous dialogue
Continuous dialogue,
customer surveys,
training, customer events
Continuous dialogue and customer
meetings, regular customer surveys
Continuous dialogue,
regular customer
surveys
Continuous dialogue,
bi-annual customer
surveys
Continuous dialogue and
regular customer surveys
•
Achieved customer cost
reductions through
energy management
services
•
Strengthen films &
specials offering
•
Optimisation of
production and
distribution network
•
Product development
partnership
•
Improvement of supply
chain efficiency
•
Sustainability and
product safety solutions
•
Launch of PM3 label products
and new value-added products
•
Joint development projects
with customers
•
Enhancing sustainability
message further
•
Customer focus throughout
the organisation
•
Launch of new
products that add
value to customers
•
Joint product and
business development
•
Development of
service offering
•
Improved business
interaction with
customers
•
Continuation of the
ongoing work to
improve supply chain
performance and
service
•
Quantifying the added
value of new product
solutions
•
Continuous customer
and contract manage-
ment
•
Development of a new
way of serving forest
owners
•
Development of web
solutions to improve
customer service
•
Development of the
relationship and way
of working with
entrepreneurs
Low-emission electricity
production, balancing
energy grid with
balancing power, fish
migration
Product safety, lifecycle
analysis, ecodesign,
waste management,
recyclability and forest
certification
Product safety, forest certification,
origin of wood and resource
efficiency, supplier audits at mills
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
Sustainable forestry, forest
certification, income and
employment for people
living in rural areas,
employee relationship
with private entrepreneurs
•
Structural changes in
the Nordic electricity
market
•
Increased volatility of
electricity market
through subsidised
weather dependent
production capacity
•
Online commerce
increasing label use
for packaging and
logistics
•
Increase in automated
product labelling and
identification
•
Retailer and distributor
network development
•
Adhesive technologies
for demanding
applications
Fine Papers APAC:
•
Changes in graphics end uses
•
Increased share of e-media
•
Quality upgrade and lower
price in cut-size business
Label, Pack and Release:
•
Growth in personal care
products
•
Retailer and distributor
network development
•
Online shopping boosting
•
Increase in automated product
labelling and identification
•
Digitalisation
•
Structural
overcapacity
•
Variations in raw
material availability
and costs
•
Power shift in
global economy
•
Consolidations
•
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
•
Increasing wood
demand and
competition due to
pulp mill investments
in Finland
•
Increasing energy
wood demand
IN BRIEF
STRATEGY
BUSINESSES
STAKEHOLDERS
GOVERNANCE
ACCOUNTS
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.
UPM’s interaction with customers
is based on continuous dialogue
and regular customer satisfaction
surveys.
Customers value UPM’s
comprehensive product range,
reliability and excellent
environmental performance.
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.
Matters related to environmental perfor-
mance are also at the centre of UPM’s cus-
tomer offering.
Collaboration with customers
In addition to a continuous working dialogue,
UPM is engaged in various development
projects 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 regu-
larly in most businesses through customer
satisfaction surveys conducted by a third
party. Based on various business customer
satisfaction surveys, the overall total satisfac-
tion with UPM as a supplier is 75%. The
result is not comparable with the previous
year’s result due to changes in the methods of
surveys. The surveys act as a tool for further
Read more on UPM BioVerno renewable
diesel on p. 22 and 51, UPM Raflatac’s
shrink sleeves p. 26 and UPM Paper ENA’s
Paper consultancy model on p. 30
development, and bring an important cus-
tomer dimension to performance manage-
ment.
Customers interested
in responsibility
Based on the dialogue and surveys, UPM’s
customers take an interest in the company’s
responsibility performance and the sustain-
ability of its operations.
Product safety, forest certification and
chains of custody, resource efficiency, safety
performance and the supply chain are among
the most important topics. The significance
of long-term financial performance and profit-
ability 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 Annual Report 2015
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