貝恩+2023年紙張和包裝報(bào)告-英

Paper&PackagingReport2023UnpackthepowerofsustainablepackagingAcknowledgmentsIlkkaLepp?vuori,wholeadsBain&Company’sGlobalForestProducts,Paper&Packagingpractice,preparedthisreportwithhelpfromateamcocaptainedbyPracticeSeniorManagerJanBuddeandPracticeDirectorCatherineSafaya-James.Thechapters

ofthisreportwere

written

byBain

Partners

andExpert

Partners

IlkkaLepp?vuori,Mattia

Bernardi,

Jenny

Davis-Peccoud,

Torsten

Lichtenau,

Oliver

Straehle,MelchiorBryant,PeterMeijer,MoritzVielhauer,LucianaBatista,DanielaCarbinato,MagaliDeryckere,ErikNordboe,MarcosRutigliano,FlorianD.

Mueller,SambitPatra,David

Waller,

PabloCornicelli,ManueldeSoto,AndreaIsabella,ElenaRecio,JaredLapin,JasonHeinrich,andJennyLundqvist;AssociatePartnersAnders

B?ck

andPolTarragó;

Expert

Associate

PartnerStephanie

Yee;

Senior

Manager

EmmaElofsson;ConsultantKajsaSchrewelius;andSystemiqPartnerYoni

Shiran.TheauthorswishtothankBainGlobalAdvancedManufacturing&ServicesExecutiveVicePresidentAndy

Bankert;

PartnersMichaelStaebe,NielsKoggersbol,andJens

Hjortegaard;Expert

PartnerMarkBurton;SeniorAssociateConsultantAndreasKroebl;LeilaKunstmann-SeikandAnnaCivilinifortheirplanningandmarketingsupport;

andAiliMcConnon

andPaulJudgefortheireditorialsupport.Thisworkisbasedonsecondarymarketresearch,analysisoffinancialinformationavailableorprovidedtoBain&Companyandarangeofinterviewswithindustryparticipants.Bain&CompanyhasnotindependentlyverifiedanysuchinformationprovidedoravailabletoBainandmakesnorepresentationorwarranty,expressorimplied,thatsuchinformationisaccurateorcomplete.Projectedmarketandfinancialinformation,analysesandconclusionscontainedhereinarebasedontheinformationdescribedaboveandonBain&Company’sjudgment,andshouldnotbeconstruedasdefinitiveforecastsorguaranteesoffutureperformanceorresults.Theinformationandanalysishereindoesnotconstituteadviceofanykind,isnotintendedtobeusedforinvestmentpurposes,andneitherBain&Companynoranyofitssubsidiariesortheirrespectiveo?icers,directors,shareholders,employeesoragentsacceptanyresponsibilityorliabilitywithrespecttotheuseoforrelianceonanyinformationoranalysiscontainedinthisdocument.ThisworkiscopyrightBain&Companyandmaynotbepublished,transmitted,broadcast,copied,reproducedorreprintedinwholeorinpartwithouttheexplicitwrittenpermissionofBain&Company.Copyright?2023Bain&Company,Inc.Allrightsreserved.Paper&PackagingReport2023ContentsNavigatingTurbulenceinPaperandPackaging28FullPotentialTransformationinPaperandPackagingThePaperandPackagingIndustryFacesaBiodiversityCrisisWhichPackagingSubstratesAretheMostSustainable?1420HowPaperandPackagingCompaniesCanCatchUpinCommercialExcellence273239PuttingSustainabilitytoWork

inPaperandPackagingTheStateofPrivateEquityandM&AinthePaperandPackagingIndustrySustainablePackaging:WhatConsumersWantNextfromthePaperandPackagingIndustry4556TheMilloftheFuture1NavigatingTurbulence

inPaperandPackagingScenarioplanningcancreateadynamic,future-proofstrategyBy

Jason

Heinrich,

Ilkka

Lepp?vuori,

and

Jenny

LundqvistAt

a

GlanceSuccessfulcompaniesembrace

disruptionrather

thanfight

itby

focusing

onthevital

fewuncertaintiesthatmatterBecomingfutureready,

moresustainable,andreachingfullpotentialrequiresa

dynamicstrategyA

winningstrategy

isgoodinallscenariosrather

thanbrilliantinonecontext

buta

failure

inothersThese

days,

chiefexecutives

inpaper

andpackagingfaceextreme

uncertainty,

volatility,

anddisruption.Covid-19

caused

abnormaldemandpatterns

across

many

product

categories.

Inaddition,paperandpackagingcompanies

have

seen

record-high

volatility

ininputcosts,

spurredby

surgingenergyandchemicalcosts,record-high

in?ation,andanenormousspikeinoverseas

transport

costsin2021.New

regulationisalso

scrambling

categories,

boosting

some

productswhiledestroying

others.Despite

thisacute

turbulence,

most

companies

still

rely

ontraditionalapproaches

to

strategy—such

asanalyzing

trends,

makingforecasts,

andcommittingto

a

set

ofactions

thattheyrigidly

follow—but

theseapproaches

are

un?tforthehighdegree

ofinstabilitythatmany

companies

are

currentlyexperiencing.Companies

gettingitrightembraceuncertaintyanddisruption(ratherthan?ghtingit)byfocusingonthevitalfewuncertaintiesthatmatter.These

includesupplyanddemand?uctuations,cost

volatility2Paper&PackagingReport2023inenergyandraw

material

prices,

andgeopolitical

risks.There

arealso

uncertainties

around

theimpactandtimingofthegreentransitionaswellasaroundnewtechnologies,

includingarti?cialintelligence,smartpackaging,ande-commercepenetration.Leading

companies

areengaginginstrategy

makingasa

continuousprocess

thatgenerates

a

dynamicplan.Theyare

laying

outthepossible

scenarios

thatcoulddevelop,

takingkeyactions

now,

andpreparingtheorganizationtoreactinatimelymannerviasignpostsortriggerpointswhenconditionschange.A

perfect

stormExternal

pressures

anddisruptionsare

atanall-timehigh,andcompanies

can’t

a?ord

to

ignoreuncertaintywhenplanningandimplementingstrategy.Covid-19

caused

demandto

surge

incertain

product

categories

suchasthepanicbuying

oftoiletpaper,andplungeinothers,suchastheradicaldropino?cepaperdemandascopyingandprintingino?cessuddenlydisappearedwhileelectroniccontractsigningtooko?.Asa

result

ofthecrisisinUkraine,

naturalgasprices

inEurope

spiked

from

analready

high€80permegawatt-hourinJanuary2022toapeakofmorethan€300permegawatt-hourinAugust,withelectricitypricesfollowingsuit(see

Figure

1).Figure

1:

Europeanenergypricevolatilityincreaseddramaticallyin2021and2022Price

in

euros

per

megawatt-hour,

quarterly500400300Electricity,

GermanyElectrictiy,

Sweden2001000Electricity,SpainNaturalgas,EuropeQ1

2021Q2Q3Q4Q1

2022Q2Q3Q4Sources:Statista;Refinitiv3Paper&PackagingReport2023Overseastransportcostsmorethantripledin2021andsustainedhighlevelsforalargepartof2022becauseofthelackofseacontainercapacityandothersupplychaindisruptions.Keychemicalsusedintheindustryhave

skyrocketedincostaswell—forinstance,starchesrosebymorethan60%,andcausticsodaincreasedbyalmost200%forsomecustomers.Regulationisalsoshiftinggrowthpatternsandinpracticeeliminatingsomeproductcategories(suchasplasticstraws)whilecreatingnewones(suchasmolded?berforcompostablesaladbowls).Bansandrestrictions

onsingle-use

plastics

arepropellinga

clearshiftfromplastictopaper

strawsandlids,andtheyareboosting

thedemandofrecycledcontentinPET(polyethyleneterephthalate)bottles.Recent

proposed

EUregulationaimsatreducing“avoidable

packaging”—thatis,reducingthedemandofquick-service

restaurant

packagingandshiftingfrom

single-usetableware,

forinstance,

to

washableitems,asalreadyshowcasedinFrance.Finally,

record-settingratesofin?ation,increasinginterestrates,andthefearofa

recessionareadditionaldrivers

ofuncertainty.Becoming

future

ready,

more

sustainable,andreachingfullpotentialrequiresadynamicplanandcontinuousstrategyprocess.Scenario

planningScenarioplanningiscertainlynotnew,

butwhileitusedtobeanacademicexercisethatexecutivesperformedeveryfewyears,it’s

nowmissioncriticalgiventheever-increasingturbulence.Scenarioplanningbeginswithno-regretmoves,oractionsacompanyneedstotakeunderanyscenario.Then,itiskeytoidentifytriggerpointsorsignpoststosignalwhenascenariooccursso

thatyoucanreactquicklyandtakeanewstrategicdirection(see

Figure

2).Forexample,a

companyevaluatingsustainabilitymaydeterminethatunderanyscenarioitwillneedtocreatemorerecyclableandcompostablepackaginggoingforwardinlightoftighteningregulationsandchangingconsumerdemand.Itwould

start

by

investing

inR&D

to

develop

newformsofpackagingandimprove

resiliency.

Then,thecompany

would

planforvariousscenarios

thatfactor

inpossibilitiessuchasvolatileenergycosts,

inputprices,evolvingregulation,andthedollarvalueofpotentiallossesshouldeachscenarioplayout.Finally,thecompanywouldtrackclearlyde?nedsignposts,andwhensignpostssuggestedonescenariobecomingmorelikely,managementcouldreactquicklyandadjust.Thecompany

would

thenuse

these

scenariosforsensitivityanalysis,meaningitcouldpressureteststrategicdecisionsandinvestments.Forexample,aninvestmentintoanewpapermillwillhavemassively

di?erent

economics

depending

on

the

expected

growth

of

paper

demand

and

the

input

costs.Having

a

feeling

fortheextreme

upper

andlower

bounds

canhelpidentifythemost

promisinginvestmentacrossscenarios.4Paper&PackagingReport2023Figure

2:

Scenarioplanninghelpspreparefor

extremeoutcomesExamples

of

extreme2030

outcomesCategoryPossible

metrics

to

measure

impactEnd

market

demand?Growthincarton

boarddemand07%

p.a?Growthincorrugated

packaging

demand?Declineingraphic

paper

demand1%–1%7%

annually–10%

annuallyRaw

material?Averagecostofsoftwoodineurospercubicmeter?Globalmarketpulpcapacityadditions(intons)by2030€105%€100

percubicmeter30%Other

variable

costsCapital

costs?Averagecostineurospermegawatt-hourforelectricity?Worldcontainerindex(40-footcontainer)?Priceofcarbonemissionrightsperton€5$1,000€10€500

permegawatt-hour$15,000€200

perton?Interestrates06%Source:Bain&CompanySolidify

new

pricing

and

product

portfolio

managementHighin?ationaryenvironments

makepricinga

priorityforcompanies.

Some

high-performingcompanieschoose

tostreamlinetheproduct

o?eringandoptimizethemixtomitigatesupplyshocksanddrivegrowth.Thesecompanieseliminateproductfamiliesandstock-keepingunits(SKUs)basedoncomplexityanalytics,migratingcustomersto

a

morepro?tableportfolio.Theyrepricehigh-complexitySKUsforwhichcustomers

are

willingto

pay

more,

transformthecost

structure

oflow-marginproducts,andexitproductcategoriesthataren’tstrategic?ts.It’s

alsoimportanttodevelopastrategyforpassingthroughthe?uctuatingcostsofraw

materials.Thiswilldepend

onwhetheryour

contract

withsuppliers

istied

to

marketdynamics

oranagreed-uponindexthatcouldbe

tiedtoglobalin?ationorcontainerboardprices,forinstance,oramixofthetwo.Whereyou

havenegotiatingpower,

you

mayneedtopushforhigherthan100%pass-throughpricing,andinothercategories,youneedtorealizethatyourcompetitivepositionissuchthatyoucan’tgetthefullpass-throughprice.

Andallthisdecision

makingneedsto

happenquickly

inresponsetomarketcircumstances.5Paper&PackagingReport2023Build

long-term

customer

relationshipsThepaperandpackagingindustryisknownforlong-termcustomerrelationships,andoneofthebestexamplesisliquidcartonpackaging,wherethereareonlyafewsuppliersandafewcustomersthatarealreadyinlong-termrelationships.Formanyoftheothergrades,youhave

manymorechoices,andinturbulenttimes,customersoftenlookforbettervaluealternatives,leadingtoincreasedchurn.Winningcompaniesinthese

categories,however,

alsoinvest

insuperiorcustomerengagement,suchasdeepercollaborationindemandplanning,inventory

management,logistics,andnewproductinnovation.Evenpackagingcompaniesingradeswithmorechoicesforcustomersprioritizedservingcustomerswithlong-term

relationshipsratherthanchasingthehighest-margincustomerswhenprices

increasedrapidlyin2022.Now

in2023,thosecompaniesarereapingthebene?tsintermsofmaintainingtheircustomers’shareofwalletbecausethoselong-termcustomershave

stuckwiththem.Double

down

on

operational

resiliency

and

traceabilityOverthepast

year,

volatileenergyprices

havebeen

themost

obvious

driverofuncertainty,andsupplychainissues,

withboth

inputandoutputprices

?uctuating

wildly,

have

also

playeda

role

(see

Figure

3).As

aresult,operationalresiliencyandtraceabilityaremoreimportantthanever.

Leadingcompaniesare

investing

inmultiplesources

ofsupply

so

thattheyarenot

dependent

ononesupplierper

category.Theyarealsothinkingabouttheirfootprintstrategyandregionalizingtheirsupplychainmorethantheyhavedoneinthepast,meaningthattheirsubcontractorsfora

givenregion(e.g.,NorthAmericanoperations)

would

be

mostly

inthatregion.Finally,

forhigh-volatilecategories,

theyare

usingcontractualtermsorhedgingtoensuretheyareprotected.Strategically

allocate

capital

expenditures,

R&D,and

M&A

fundingDownturnsareagreattimetogainmarketshare.To

win,youmustinvestselectivelytooutperformcompetitors.

Use

M&Atoreshape

theportfolio

ofbusinesses.

For

example,

in2008,

GraphicPackagingacquiredAltivityPackagingfor$1.75

billiontocreateoneofthelargestproducersoffoldingcartonsinNorthAmerica.Thecombinedcompanywasabletorealizesigni?cantcost

savingsandoperationale?ciencies,improving

pro?tabilityandsolidifying

GraphicPackaging’sposition

asa

leading

produceroffoldingcartonsinNorthAmerica.It’salso

criticaltocontinueinvestinginR&D,

allocatingcapitaltowardtherightprojects

whilemakingsuretheyare?exible.StoraEnso,

forexample,iscurrentlyinvesting€1billionintoconvertinganidlepapermachineintoa

high-volumeconsumerboardproductionline.Themachinewillbeableto

producefoldingboxboardaswellascoatedunbleachedkraft,whichcanbe

usedina

widerangeofindustries,includingfoodandbeveragepackagingforfrozen,chilled,dry,

andfastfood.6Paper&PackagingReport2023Figure

3:

Outputpricessurgedin2022Prices

index

(starting

month

January

2013)Prices

index

(starting

month

January

2013)30025020015010050300250200150100502014

15161718192021222014

1516171819202122CartonboardContainerboardPulpGraphicpaperPET

(polyethyleneterephthalate)RecycledPET

clearNotes:Graphicpaperreferstouncoatedwoodfree,coatedwoodfree,uncoatedmechanical,coatedmechanical,andnewsprint;pulpreferstobleachedhardwoodkraftpulp,bleachedsoftwoodkraftpulp,andothers;containerboardreferstokraftliner,testliner,andfluting,cartonboardreferstowhite-linedchipboard,solidbleachedsulfate,foldingboxboard,coatedunbleachedkraft,andfoodserviceboard;pricemovementswithinthesubcategorieswerehighlysimilar,thereforeanaverageacrossthecategorieswastakentoconstructtheindexSources:RISI;KunststoffInformationVerlagsgesselschaft(KIVI)Reset

the

cost

base

and

prioritize

automationBasicautomationtoolshave

becomecommoninmanypaperandpackagingcompanies.Modernmachinescanrunsawmillsandpulpmillswithvery

littlehumanoversight,anddigitalsales

channelscanautomate

many

sales

activities.

Automationcuts

costs

(because

itreduces

variability)

andimprovessafety.

Withimprovingindustrialcontrols

andclosed-loop

control

systems,fewer

employees

are

neededtorunhighlycomplexpapermachines.Goingforward,theonlycertaintyisuncertainty.Turbulencewillmostlikelyonlyincrease.Forthisreason,winningexecutivesaredesigningastrategythatisgoodinallscenariosratherthanbrilliantinonecontextbutafailureinothers.7Full

PotentialTransformationinPaperandPackagingBoostingprofitability,cashflow,

top-linegrowth,andcompanyvalueBy

Pablo

Cornicelli,

Manuel

De

Soto,

Andrea

Isabella,

Ilkka

Lepp?vuori,

and

Elena

RecioAt

a

GlanceAfullpotentialtransformationcanraiseacompany’s

profitability,cashflow,

top-linegrowth,andvaluetoacompletelydi?erentlevelPaperandpackagingcompaniesthathave

achievedafullpotentialtransformationhave

typical-lydoubledtheirEBITDAover

twotofive

yearsSuccessfulcompaniesembraceclearpurpose,fullalignment,accountability,andsprint-basedprioritizationofactionsHow

didFedrigoni

Paper

more

than

double

its

adjusted

sales

and

almost

triple

its

EBITDA

in

just

a

fewyears?Established

in1888,theItalianfamily-runcompanyhasa

longandstoriedhistory

ofproducingspecialty

paper

andself-adhesive

labels.

More

recently,

however,

Fedrigoni

lost

twolarge

internationalbanknotecustomers,

andmarketdynamics

shifted.In2018,

Bain

Capital

acquireda

90%stake

inFedrigonifor€600millionandhelpedtheItaliancompanyexecutea

fullpotentialtransformation.Bybuildingscaleinexistingmarkets,expandingitsgeographicscope,andacquiringseveralItaliancompanieswitha

strongEuropeanpresence,Fedrigonibecame

oneofthetop

playersinself-adhesivelabels

worldwide.

Italso

embedded

sustainabilityinto

internaloperations

andits

day-to-daybusiness,developingcircularproductssuchasspecialtypapermadeof40%to100%recycledmaterialaswell8Paper&PackagingReport2023aspapercombiningpulpandalternative?berssuchascotton,hemp,andlinen.Finally,

italsocutcosts

andoptimizedoperationalexcellence.Thankstothese

measuresandothers,investorsachieveda?ve

timesreturnoninvestmentwiththenewvaluationofFedrigoniat€3billion.Foreverycompanythathasinvestedattherighttimeandachievedgame-changingoperationalandcommercialresults,therehave

beenmanymorethathave

faceddecliningpro?tabilityandseriousbalancesheet

issues.

Given

thiswidevariation,CEOs

andshareholdershaveprioritized

understandinghow

togeneratethemost

attractivereturnsandmakethemost

outoftheirexistingproduction

assets.“Transformation”isused

widely

inthebusinessworld,

andatBain&

Company,

a

“fullpotentialtransformation”

is

the

cross-functional

e?ort

to

alterthe

?nancial,

operational,

and

strategic

trajectoryofthebusiness.Whenimplementedsuccessfully,

thisplancandramaticallyraisethecompany’sperformanceto

a

completelydi?erentlevel

intermsofitspro?tability,

cash?ow,

top-linegrowth,andvalue.

Thissuccessoftenleadsto

anincreasedabilityto

makeboldnewinvestmentsinnewproductioncapacityandR&D.

Thesedays,suchtransformationplansalsooftenincludeaconcretesustainabilityplanthatoutlineshowtogettowardlower(orideallyzero)carbonemissionswithinagiventimeline,oftenthroughsiteenergy-e?ciencysavingsorinvestmentsinnon–fossilfuelenergy.Successfulcompaniesarticulatea

clearpurpose

andvaluecreationplanora

roadmaptoachievetheirfullpotentialtransformation(see

Figure

1).Theyalignfullyacrosstheorganizationandsplitbiggerkeyinitiativesintomultipleshortersprints.Executivesmeetregularlytoensurethatperformanceistransparent,roadblocksarequicklycleared,anddecisionsarequicklymade.Finally,theyensurethatthebesttalentleadsthetransformation,andtheyhonestlyevaluatewheretheyaremissingcertainskills,hiringexternallyto?llthosegaps.A

fullpotential

transformationusuallyconsists

ofa

?ve-year

planto

signi?cantlyimprove

theEBITDAofthecompany.

Everythingonthisbroadagendacannotbesuccessfullyexecutedatthesametime.Instead,successfulcompaniesidentifyandquantifytherelevant

ways

tocreatevalue.Threedi?erentways

thattop-quartilecompaniesBainhasworkedwithhave

employedspeci?cvalueleversaspartoftheirfullpotentialtransformationincluderevampingtheirportfoliostrategy,

steppinguptheircommercial

andoperational

excellence,

andimproving

theirperformancethrough

cost

transformationandnext-generationsourcing.Revamping

portfolio

strategy:

Leading

companiesanticipateandreact

tochangingmarketdemands,andtheyadjusttheirportfolioaccordingly.Earlylessonscanbelearnedfrompapercompaniesthatswitchedsomeyearsagofromdecliningproductssuchasgraphicpapertoproducinghigher-demandpackagingproducts

suchascarton

board

orcontainerboard.Revamping

theirportfolios

often

involveddivestingorspinningo?lower-demandproducts,closingcertainpapermillsiftheyweretoooldorcostlytoconvert,ortransformingmachinestoproducethehigher-demandproducts.Today’s

leaders

also

realize

thattransformingone’s

portfolio

means

accepting

thattheywillneedtoclosecertainplantsandmakenewinvestmentstoconvertmachinesintogrowingandattractiveproductgrades.Finally,

leaderswillupgradethecommercialorganizationtoe?ectivelysellthenew9Paper&PackagingReport2023Figure

1:

ValuecreationleversthataccelerateafullpotentialtransformationStrategic

choicesCommercialexcellenceCost

and

capitalefficiencyOperationalexcellenceDefine

and

refine

awinningstrategy

andambitionsAccelerate

growththrough

commercialexcellenceImprove

performanceand

sustain

costtransformationImproveoperationsthroughresults-focusedinitiativesWhereto

playHow

to

winMarket

and

customeropportunitiesFibersourcingUtilizationandproductivityProductportfoliomixOtherrawmaterialsourcingVariable

costoptimizationSite

andportfoliomanagement,including

M&APricinganddiscountmanagementWorking

capitalefficiencyAssethealthCapitalinvestmentsSalesforceeffectivenessSelling,general,andadministrative

expenseoptimizationFootprintoptimizationBusiness-to-businessmarketingSalesandoperationsplanningCustomerexperience/feedbackEnvironmental,

social,

and

corporate

governance

(ESG)

key

enablersEnergyandemissionsMaterialconsumptionWaterconsumptionandtreatmentWaste

andproductendof

lifeEmployeehealthandsafetySupplier

ESGpracticesOperating

model

and

other

key

enablersOrganizationalmodelandalignmentPeopleskills,culture,

andtalentAgiledeploymentPerformancemanagementDigitalSource:Bain&Company10Paper&PackagingReport2023productstonewcustomers.Thiscouldentailtrainingsalesteamstosellcartonboardormolded?berproducts

to

fast-moving

consumergoods

companies,retail

chains,orquick-service

restaurants,

insteadofsellinggraphicpapertopublishers.Stepping

up

commercial

and

operational

excellence:

Manyfull-scale

transformationsrely

onimprovingcommercialandoperationalresultsacrossdozensofproductionsites.Onepackagingproducer,forexample,startedby

settinghighambitionsto

improveoperationsvs.thebaseline.Itbegan

byseekingfulltransparencyofwhatgood

lookslikeona

verygranularlevel.Ontheoperationsside,supervisorstrackedhowworkersdidonkeyperformanceindicatordashboardsineveryplantforevery

shift,how

theshiftchangeover

was

managed,

andmany

other

details.Theydidthistoestablishtheirambitionandwherecertainteamsandplantsneededtoclosethegap.Thecompanybroughtintheequipmentmanufacturers(whoalsofunctionedasconsultants)tosharebest

practices

andhelptheteamsaccomplishoperationalexcellence.

Finally,

itconnected

those

teamsfocusedonoperationalexcellencewiththeteamsworking

oncommercialexcellenceandsourcingexcellenceto

ensurethatoperationalexcellenceimprovementswere

not,forinstance,negativelyimpacting

thecommercial

team.Sourcing

waslooped

inearlyonto

help?ndwhichmaterials,

recipes,andsupplierswereneededtooptimizeproductcost.Improving

performance

through

cost

transformation

and

next-generation

sourcing:

Other

companieshave

improvedtheircoststructureandupgradedsourcingtostaycompetitiveanddriveamultiyeartransformation.Foronecompany,thisincludedcoordinatingprocurementforkeyproduct

categoriesso

thatevery

singlemilldidnot

negotiate

withsuppliers

separately,

butinstead,

theycouldtakeadvantageofvolumediscountsandmorestrategicdialogueswithselectsuppliers.Analyzingthe

data

enabled

the

company

todeterminea

moree?cient

balance

when

choosing

amongtheshareof?bertoproduceinternally,tosourcefromexternalsuppliers,ortopurchaseontheopenmarket.Bigdataanalysisonvariedperformanceacross

allproducts

andsiteshelped

managedemandandidentifyhowitcouldreducethecost

ofchemicalsandenergywithinits

operations—forexample,through

calibrationofrecipes

andconsumptionintheproduction.

As

a

result,

thiscompanymanagedtoreducecosts,improvecollaborationbetweensourcingandkeybusinessstakeholders,andupgradethesuppliermanagementandoverallsourcingstrategysigni?cantly.Sourcingteamswereinvolvedearlyandthroughoutthefulltransformationprocesssoastobemorecoste?cientiftheteamweretobesoughtouttoalterthep