Customer Newsletter 1/2016

TIMBER
DEAR CUSTOMER,
Writing the editorial for UPM Timber’s
customer newsletter is always a
pleasant task. This time it is even
more pleasant than usual because
I can honestly say that we are moving towards a brighter future with
you, our customers. Even though the
world economy has not yet started to
recover we have made a “false start”
in the sawn timber business. At UPM
Timber this is how we see the situation at the moment:
The first months of 2016 have
been very busy and I have purposefully visited many different markets
to see you and our Timber sales
teams abroad. The discussions held
have given me many positive signs
of recovering demand in all markets
where we operate. The demand in
Asia is continuously growing and
there also seems to be a positive
atmosphere at in the European
market including Eastern Europe. Demand in the Middle East and North
African countries is also at a good
level although there remains speculation about the low oil price and its
effects on purchasing power. I have
strong faith that the rest of 2016 will
continue to be positive regarding
sawn timber demand. Our order
books look good and our sawmills
are always developing their production efficiency to enable us to offer
you even more of our high quality
products. For this reason we will limit
our sawmills’ summer stoppages to
a maximum of two weeks.
I am extremely happy with the
positive feedback I have received
from you regarding our delivery
reliability, the high quality of our
UPM TIMBER
CUSTOMER NEWSLETTER
SPRING 2016
products and the professionalism of
our people. Thank you! These comments confirm my belief that we have
chosen the right strategy and held on
to it. The most important corner stone
of our strategy is you, our customers.
In the future we will put even more
effort into developing our customer relationships and our own operations.
Our target is to be your preferred
choice when making your purchasing
decision.
Finally, I have just checked my calendar and realise that the rest of the
year will continue as it started. I shall
be visiting as many customers in as
many different markets as possible.
I look forward to discussions with you
and listening to how we can further
improve our actions.
I wish you all a positive second
half of 2016!
With best regards and looking
forward to our discussions,
Mikko Hyvärinen
Director, Sales and Supply Chain
DOMESTIC CUSTOMER DAY
FOCUSES ON DEEPENING
CO-OPERATION
T
he strategic customers from the
domestic market were invited to
the customer day arranged in the
Kaukas Club House in Lappeenranta
in at the beginning of April. The day
consisted of versatile informative
presentations and a tour of Europe’s
biggest mill integrate area. Customers got an insight into UPM Timber’s
business and sales strategies, our
view of the global sawn timber market, and the specialist support which
our Technical Sales Manager can
offer. The director of UPM Forestry
Department, Sauli Brander, gave an
overview of the log trade situation
and availability of certified raw
material.
The day’s informative presentations were concluded with lively
discussions in the sauna, where
the world can always be put to
rights, and a wonderful dinner in the
traditional surroundings of the Kaukas
Club House. The day was a great
success and we would like to thank
all our customers who made the day
possible with their presence and
enthusiasm.
JUKKA FEHR
UPM TIMBER SALES
TEAM GERMANY
W
orking with wood is something
that has been a central theme
of Jukka Fehr’s life for many years now.
It all started in 1993 when his parents
build a Finnish log home from Ollikaisen Hirsirakenne in North-Germany.
Following this, Jukka decided to study
carpentry after finishing high school,
and later studied “Wood science
and technology” at the University of
Hamburg which focused on the mate-
rial properties of wood, he also spent
4 months in Finland as an exchange
student in Joensuu.
In 2009 Jukka joined UPM and
has now been working for 7 years
as a Sales Manager in the Hamburg
office. “I thoroughly enjoy my job!
We have a great team spirit in our organization. I also personally feel that
timber is becoming more and more
important and has a bright future.”
Jukka says. In the Hamburg Sales office there are two people responsible
for timber sales in Germany who also
take care of Germany, Poland, Slovakia, Czech and Switzerland. “The
essential part in our Sales is a good
relationship with the customer and reliability. Reliability starts at the sawmill
and actually already in the forest.
So the whole supply chain is very
important. Besides this our customers
appreciate our good service and our
quality in both species: spruce and
pine”. Jukka adds.
THE KEY PHRASE AT ALHOLMA
SAWMILL IS CUSTOMER FOCUS
A
lholma sawmill in Pietarsaari is
in the most northerly located of
all UPM’s sawmills. The annual capacity of the sawmill is 270 000 m3
and it employs 60 people. The
product portfolio consists of both redwood and whitewood sawn timber
of which 70% is exported. The main
markets for Alholma sawmill are the
domestic market, Japan and Middle
East and North African countries
Three key phrases describe
Alholma sawmill: consistent quality,
willingness to serve and delivery reliability. ”In every situation we aim for
customer orientation and with consistent quality monitoring we guarantee
good and consistent quality.” explains Alholma sawmill director Mika
Åby. Alholma’s sawn timber quality
has improved significantly during
recent years. These good results have
been accomplished with continuous
quality control and regular quality inspections. The commitment to quality
development is very high. ”We have
invested in not only developing our
product quality but also developing
the quality and visual appearance
of sawn timber packages in order to
improve the customer satisfaction.”
Mika continues.
Alholma mill integrate has its own
port and the goal is to maximise
the port’s utilisation for sawn timber
shipments. There are good connections from the port, especially to
the Middle East and North African
countries, and storage at the port has
been enhanced in order to minimise
over-handling of packs and hence
maintain them in top condition.
Transport by rail will also be possible
once electrification of the railway is
complete.
In summary, we are proud to say
that the positive attitude and desire for
continuous improvement at Alholma
puts customer focus at the heart of the
sawmill.
SPECIALISED AND PROFESSIONAL PERSONNEL IS THE COMPETITIVE ADVANTAGE OF UPM TIMBER
D
uring last three years UPM Timber has made significant efforts
to advance the professionalism of
their personnel and to further develop
customer focus.
The first sales training sessions
were completed during spring 2013.
Sales office personnel were updated
on the global sawn timber business,
provided with new tools to improve
customer satisfaction, and equipped
with in depth knowledge of various
timber qualities. The year and a half
long education package continued in
Finland with sawmill visits, the focus
here was to deepen knowledge of
the products and sawing process.
The third module of the training
focused on daily and more complex
sales situations.
Separate training was also organized for all sales assistants around the
world. During their week in Finland
they visited sawmills and our forest
raw material source as well as sharing best practices.
The third phase of UPM Timber’s
training programme extended to
personnel at sawmills. Last year
we trained the production foremen
and this year the production teams.
Employees had expressed an interest
in customer and market information
in advance, additionally pictures
and information about UPM Timber’s
sawn timber in end use were studied
during the training. The trainees also
visited some of our domestic customers and discussed their priorities
in terms of products, services and
sawmill investments.
UPMs policy is for continuous
development of the professionalism
of our employees and ongoing open
discussion with our customers. In
China we have already arranged
training for our customers and for our
customers’ customers and this year
we will host customer days in other
markets. Out target is to continuously
improve our customer service and
co-operation.
THE BREAKDOWN BY MODE
OF DELIVERY FOR THE
1.4 MILLION m3 DELIVERED
IN 2015 IS AS FOLLOWS:
Photo Gilles Delacuvellerie
• Containers 35%
• Break bulk vessels 30%
• Door to door trailer
deliveries
to Europe 16%
• Truck deliveries
to Finnish customers 19%
DEVELOPING LOGISTICS
TO ENSURE DELIVERY RELIABILITY
D
uring the last five years a
significant structural change has
happened in UPM Timber logistics;
the number of 40 foot containers the
timber is delivered in has increased
remarkably. The volumes have grown
from approximately 4500 containers in 2011, to 7000 in 2013 and
10000 in 2014 and 2015. The
estimation for 2016 is 11800 con-
tainers. This equates to an increase in
container volumes from 200 000 m3
to 500 000 m3 in 5 years.
From the beginning of 2016
UPM Timber has started to measure
delivery reliability. In the event that
the originally agreed delivery week
has to be changed, the reason for
change is recorded and the number
of days delay is calculated. “By
recording and following the delivery
reliability statistics we get to the root
cause which is actually causing the
delays. Then we can sooner react
and make the corrective actions
needed. This results in even better delivery reliability.” says Erkki
Pietikäinen the Logistic Manager of
UPM Timber.
tion with UPM Timber: “UPM Timber
conquered the Chinese market and
won the trust of its customers with its
excellent product quality, professional
management of distribution channels
and outstanding customer service.”
Over the years, High Hope Arser
has become the largest and most
competent distributor of Nordic sawn
timber in Eastern China. According to
sourcing manager Andy Han, UPM
Timber is the company’s preferred
brand. UPM Timber’s share of sawn
timber in the entire inventory of High
Hope Arser has increased from 20%
to 80%. This also proves that there is
a deep strategic partnership between
the companies.
HIGH HOPE ARSER IS BUILDING
A BETTER FUTURE WITH UPM
J
iangsu High Hope Arser Co., Ltd
is a Chinese wood sector company and one of UPM’s most important customers in China. High Hope
Arser manufactures wood and wood
based products as we as importing
and exporting these products globally. The company has an extensive
network of suppliers and customers
in more than 20 countries. In 2015,
High Hope Arser’s combined import
and export value amounted to USD
307 million. Due to its export business, High Hope Arser was named
“Guiding Index Sample Enterprise
in Chinese Export” by the Chinese
government.
The cooperation between High
Hope Arser and UPM started in
2012. Over the years, the cooperation has deepened into a strategic
partnership. The annual sales volume
has increased from a couple of
thousand cubic metres to 44,000 m3
in 2015. “We arrange monthly meetings where we discuss the market situation and outlook. We work together
to find the best, flexible strategy for
the continuously changing market conditions,” says Hisense Sun, head of
the Chinese sales office. Mr Zhang,
High Hope Arser’s Vice President,
is very impressed by the coopera-
UPM Timber conquered
the Chinese market with
its excellent product quality,
professional management
of distribution channels and
outstanding customer service.
UPM TIMBER’S PRODUCTS HAVE
DIVERSE APPLICATIONS
■ The amazing log
house villa in the Finnish
archipelago is made
from UPM Timber’s
sawn timber.
Photo: Honkarakenne
■ The windows of the recently
renovated Hotel Torni in Tampere,
next to the UPM Timber head office,
were manufactured by Finnish
company Lammin Ikkuna Oy.
The window blanks were made
by UPM’s customer Virepuu from
UPM Timber’s sawn redwood.
■ In the French Alps,
skiers can appreciate
the attractive external
cladding boards of a
hotel which are made
from UPM Timber’s sawn
whitewood.
■ In Morocco, our sawn
timber is turned into
windows and doors that
are further processed
by expert carpenters to
make wonderful pieces
of art with extensive
detailing.
■ Finnish children in
Pudasjärvi go to school
in a log house whose
pine raw material is
sawn at UPM Timber’s
redwood sawmill from
middle logs.
Photo: Kontiotuote
■ In Central Europe, sunbathers can relax and enjoy
a cup of coffee at the lakeside on a deck manufactured
from UPM Timber’s sawn redwood.
■ In Italy, beautiful
outdoor gazebos
are produced from
UPM Timber’s
sawn redwood.
■ Whitewood side boards are
processed in China into durable,
high-quality children’s furniture.
The Chinese value the purity
of Scandinavian wood and its
beautiful light colour.