Coping with supply scarcity when demand is growing

Demand for pulp is growing – and forecast to go on growing by 2–3 per cent annually for at least the next ten years.

Tissue products are in high demand due to urbanization and rising living standards throughout the world. The packaging industry is facing a shift towards materials that are easy to recycle or dispose of sustainably, taking market share from materials such as plastics or glass. The textile industry wants more and more viscose fibre. Add to this the stable, regionally even rising prices for pulp, and you will most probably come to the conclusion that all this is good news for the industry.

Yet, raw material is increasingly difficult to come by. Competing uses for wood fibre are emerging, such as pellets for heating and bioproducts. Regional shortages of fibre are being seen, for example in Central Europe where forest owners are not keen on selling. Inbound logistics is difficult to manage, not least because of the often long distances from source to mill. Different species are more suitable for one purpose than for another, possibly leading to fragmented sourcing scenarios.

Nordic mills, in particular, should pay close attention to optimizing their supply, production and demand planning as they account for more than half of European pulp production. Tieto’s solutions help you manage the entire value chain from sourcing through logistics to production optimization, achieving operational excellence and efficiency increases at the same time.

 
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Arnold Präsent
Automation Engineer
+431331745173