Supply Chain Management
Supply Chain Management strategy
Outokumpu's Supply Chain function supports the Group strategy of offering customers technically superior products and services. The aim of Supply Chain Management is to increase sales to end-users and projects while maintaining a focus on the distributor and processor sector. The objective of Supply Chain Management is to optimise the flow of products from raw materials through production to final delivery to the customer, enhancing production stability and improving the efficiency of inventory management while simultaneously developing the Group's ability to deliver to its customers on time. Supply Chain Management includes the Production Excellence programme (OK>1) and covers raw material and general procurement, logistics and supply chain operations.
Achievements in 2009
In many industries, 2009 was a very difficult year due to the impact from the global economic recession. Outokumpu, however, will be better positioned to meet and adapt to current and future challenges with its renewed organisation and more efficient processes within supply chain. Focus was on developing and creating uniform ways of working within Outokumpu's production sites and business units. This enables the Group to optimise the entire material flow creating shorter and more stable lead times for both internal and external customers. In 2009, the Group's delivery performance improved for the third consecutive year and total inventories were reduced by approximately 25%.