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Paper Profits: Improving Supply Chain Operations, Procurement And Integration At A Major Paper Company

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Executive Summary

A major global packaging systems and paper manufacturing company wanted to solidify its competitive position and reduce costs. But decades-old procurement and supply chain practices posed a barrier to new and better ways of working. The company is now on the path to saving more than $40 million annually, while realizing the full benefits of a merger. Companies in the paper industry focus a lot of attention on the production line. As long as the machines keep rolling, everything else in the business is secondary. This focused approach worked well enough in the past. But over time, the costs and inefficiencies of traditional operating practices can really add up. Breaking free from deeply entrenched behaviors and practices usually requires a major event or crisis. In this case, the catalyst for change was a major merger and change in leadership. The CEO had worked with Deloitte in the past and understood the powerful impact that an analytical approach and fresh perspective could have on a mature business. Deloitte tapped talent from Deloitte Touche Tohmatsu member firms in the U.S., U.K., Netherlands and Sweden to help the company in its efforts to improve its manufacturing and supply chain operations. This team included specialists in direct and indirect procurement, supply chain management and process manufacturing, along with professionals with deep experience in key cost categories such as wood, chemicals and Maintenance and Repair Operations (MRO). The team helped the company conduct a rapid diagnostic analysis to identify and prioritize opportunities based on business impact, complexity and potential for success.

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