During the study, UPM Raflatac got a numeric estimation of its current supply chain sustainability, and is now able to follow how the supply chain evolves, study changes and steer development in the right direction. The degree of supply chain sustainability was evaluated using a new model that considers 15 key performance indicators under ecological, economic and societal categories.
"The study provided a deeper insight into the broader sustainability impacts of our supply chain. This can help us make informed decisions regarding our logistics optimization," says Oona Koski, Senior Specialist, Sustainability, UPM Raflatac.
Companies need to understand and measure their supply chains in order to manage multiple supply chain risks and maintain competitiveness. Most organizations measure only ecological indicators, typically CO2 emissions. The new model of evaluation additionally considers economic and societal aspects. When the impacts of all three aspects are evaluated, sustainability and the performance of a supply chain are assessed more comprehensively.
The new model is part of continuous development between UPM Raflatac and Kuehne + Nagel. It can be used when evaluating future changes in UPM Raflatac's supply chain, to support the company's sustainable development.
"Our strategic partnership with UPM Raflatac aims to optimize the performance of UPM Raflatac's logistics. This model provides an opportunity to strengthen our relationship and further benefit both companies," says Teemu Koivunen, Director of Kuehne + Nagel Integrated Logistics Finland.
The new evaluation model was developed by Anne Winter (PhD) from the University of Strasbourg. Her study is titled "Evaluation Model of a Supply Chain's Sustainability Performance and Risk Assessment Model Towards a Redesign Process."