Supply management

The aim of this strategy is to involve the suppliers in the environmental improvement work of the company. The strategy is based on experiences from Stora Enso.

The purpose of this strategy is to show how Stora Enso in a systematic way has involved the suppliers in the environmental improvement work of the company. The main target groups are purchasers, persons responsible for environmental issues in logistic departments and other interested parties.

Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products. Analysis of the supply chain showed already at an early stage that raw materials, services and transports play an important role for the environmental profile of the end products. It therefore appeared necessary to involve the suppliers in the environmental improvement work of the company, so that at every stage from raw material to end product, the impact on the environment would be minimized.

This was done through the development of a computer based system called SE Purchasers' Compass (Company management performance assessment). The system assists purchasers in Stora Enso by evaluating the environmental improvement work of the suppliers, something that will hopefully also benefit the customers in the end. The leading idea is that the implementation of an externally audited environmental management system, such as ISO 14001 or EMAS, provides a very convincing demonstration of the suppliers' commitment to continual improvements. However, the main purpose of SE Purchasers' Compass is not to phase out suppliers not having implemented an environmental management system yet. Such suppliers are instead encouraged to improve their performance. For smaller companies it is not always feasible to be ISO 140001 certified or EMAS registered, why other solutions might be acceptable in those cases.

Wood is by far the most important raw material for Stora Enso. The company is also a large purchaser of transport services. Stora Enso Transport and Distribution is responsible for transporting products from mills to customers, and negotiates its own agreements with transport suppliers on a regional basis. The other main categories of materials and services purchased by Stora Enso are binders, pigments, chemicals, fuels, packaging, paper machine clothing, maintenance, repair and IT investments. The purchasing of these raw materials is carried out at corporate level by Stora Enso Purchasing and at local level by different Stora Enso Local Units.

Stora Enso Environment, Stora Enso Purchasing and Stora Enso Transport and Distribution are jointly responsible for the development and administration of the SE Purchasers' Compass system. The main reason for a mutual tool is to prevent that various production units or purchasing organizations within Stora Enso make different demands on the suppliers. It is a way to set a minimum level for the environmental demands.

Working procedure