Supply Chain Redesign at Finnforest (Metsä Wood)

Supply Chain Redesign at Finnforest (Metsä Wood)

My takeaway from the case study was the significance of time compression in the supply chain. The time factor in the supply chain has a massive effect on planning, cost, flexibility, and performance indicators. We looked at the case study of Finnforest Corporation, a timber products company with a €1.2 billion turnover based in Finland. The case examines how the corporation provides its major DIY stores in the United Kingdom. Vinod Thayil, a Cranfield School of Management researcher, used a three-stage technique to rebuild the Finnforest DIY supply chain. Vinod considered the existing supply chain of timber products from Finland to major DIY retailers in the UK. The second stage of the supply chain redesign is to analyse the process. Vinod employed a technique known as “time-based processing.” This aids in determining where waste exists in the supply chain. The final component of this supply chain redesign strategy is to restructure the process.

As we grasped the researcher’s aim, I looked for steps in Table 1. Supply Chain Steps with Performance Measures and noted which steps took the most time to complete and how they affected supply chain efficiency. The most time was spent on harvesting trees, transporting them to the United Kingdom, doing secondary manufacturing, and transporting them to retailers. Using an activity-based map, we determined that 60% of lead time is lost. The significant amount of squandered lead time should be brought to the attention of top management. Using the supplied data, we can find ways to shorten the total supply chain lead time, including continuous process activities and enormous coordination between harvesting and logistics are essential to prevent raw materials from stacking up in the warehouse and increasing inventory time.

As a result of classroom discussion, the idea of including a wooden log of each city’s activities in each voyage was proposed. Every city on its route would be serviced by these ships before it made its way back to the main warehouse and the continuous cycle. The same ship will deliver its cargo to one port while another vessel comes in to unload some of its cargo. The disparity is explained by the fact that we are receiving fewer goods but more frequently. This is one of the case studies that helped me look over the researcher’s work and see how he went about mapping out the supply chain of a timber manufacturer and giving us detailed information about the things that happen at the factory and how long they take to do using a time-based process map and an activity-based map.

Delivering on the promise of green logistics

Delivering on the promise of green logistics

Due to increased competition and the growing environmental impact of logistics activities, organisations are compelled to collect and evaluate logistical performance metrics. Effectiveness, efficiency, and distinction are three aspects that managers should concentrate on to improve logistics performance. According to the author, clients of Boise and OfficeMax collaborated to improve the “Effectiveness” factor of logistical performance. OfficeMax and Boise’s Carload Direct project pool chose to ship SKUs through rail since it is less expensive and uses less fuel for the same weight and distance. A half-pallet and staged order satisfied the customer’s specifications. Ocean Spray and Tropicana have acknowledged logistical “Efficiency” by employing chilled rail car-boxes and intermodal shipping to cut greenhouse gas emissions. Caterpillar used the “Difference” factor of logistics performance to urge suppliers to transition from metal to plastic containers in order to reduce CO2 emissions.

The demand for substantial internal and external collaboration is one of the most significant obstacles associated with implementing these strategies to reduce CO2 emissions. The availability of rail and truck to load cargo with a focus on lead management and on-time delivery was noted as a challenge for the two projects completed by the MIT Team. Other obstacles include the logistics function, which is driven by multiple collaborators, supply chain visibility, information exchange between two parties that use the same third-party logistics provider, as discussed in class risk mitigation across different operation levels, and the availability of logistics cost data to conduct accurate cost analysis and share the analysis with collaborators to highlight the issues. These initiatives demonstrate the ability of collaboration to unlock the enormous potential for decreasing the carbon footprint of logistics and, by extension, the environmental performance of participating enterprises.

Through a number of projects, logistics managers can determine the efficacy of their organisations. Each technique requires management in order to identify the elements that influence efficacy and evaluate their relative significance when creating logistical performance parameters for reducing emissions. As stated in class, developing a “Sustainable Organization” is a responsibility that top management is responsible for instilling in all levels of management and advising appropriately. This can be achieved with the help of the Sustainability Balanced Scorecard (SBSC), which can be used to track emission reductions at various organisational levels. (Beamon, 1999) emphasised tracking resource consumption, expected output, and flexibility (how well the system adapts to uncertainty) as essential elements of supply chain success. It also highlights the significance of these three types of performance metrics in supply chain monitoring systems. Finally, the article contributed to the understanding that teamwork is frequently the key to achieving the predicted financial and environmental benefits.



Environmental, social, and governance (ESG) concerns are crucial issues that businesses must address to maintain their long-term sustainability. They are no longer merely trendy buzzwords in the corporate world. Investors, consumers, and other stakeholders are becoming more and more aware of the significance of ESG factors and are pressing businesses to be more open and accountable. As a result, for businesses that wish to succeed in the present business environment, integrating ESG thinking across the corporate plan has become essential.

ESG is a group of non-financial factors that are used to judge how well a company is doing and how sustainable it is. Environmental factors look at how a company’s activities affect the natural environment. This includes things like carbon emissions, waste handling, and the use of upward resources. Social factors encompass the manner in which a company engages with its workforce, clientele, vendors, and local populace, in addition to challenges such as diversity, equity, and inclusion. Governance factors pertain to the internal management systems of a company, encompassing the board of directors, executive compensation, and the transparency of financial reporting.

ESG vs Company Goals:

Integrating ESG thinking into the business strategy means putting ESG factors into every part of a company’s operations, from making decisions to evaluating success. It takes a change in mindset from seeing ESG factors as separate from the business strategy to seeing their importance as key drivers of long-term value creation. It is imperative for companies to prioritize Environmental, Social, and Governance (ESG) issues, ensure their alignment with overall business objectives, and maintain transparent communication with stakeholders regarding their advancements in this regard.

What is the key to sustainable success?

As we progress from compliance to efficiency to innovation and growth, the pattern implies that market demand is significantly influenced by climate change, diversity, customer access to and affordability of products, and so on. There are various reasons why organizations should incorporate ESG thinking into their business strategy. First and foremost, it is critical for long-term sustainability. Companies that fail to handle ESG issues risk damaging their reputation, facing legal and regulatory hurdles, and experiencing financial instability. This can lead to a loss of trust among stakeholders, affecting the company’s bottom line.

Source: Public Sentiment and the Price of Corporate Sustainability

Second, incorporating ESG considerations can increase innovation and productivity. By prioritizing ESG concerns, businesses can uncover new development opportunities and establish more sustainable and effective business models. Organizations have the potential to diminish their carbon emissions by engaging in practices such as allocating resources towards renewable energy or integrating sustainable procedures within their supply chain operations. Companies have the potential to mitigate their ecological footprint and achieve long-term financial savings.

Thirdly, integrating ESG principles can help businesses attract and retain top talent. In today’s workforce, employees prioritize organizations that share their values and demonstrate a commitment to social and environmental responsibility. Companies that prioritize ESG factors can create a workplace that is more inclusive and diverse, cultivate a culture of innovation and collaboration, and recruit and retain top talent.

Lastly, ESG thinking can assist businesses in strengthening their relationships with their stakeholders. By promoting transparency and accountability, businesses can inspire confidence in investors, customers, suppliers, and the community. This can lead to increased brand loyalty, an improved reputation, and, ultimately, long-term value creation.

Barriers to Sustainable Success:

The bulk of sustainability projects prioritize environmental and social goals. But, as deadlines approach, how do businesses go from well-intentioned goals to actual accomplishment?

To be successful, the ‘gap’ between intention (objective) and achievement (real impact) must be closed. Integrating ESG issues into company planning, however, is not without challenges. One of the most significant barriers is the lack of defined measurements and reporting systems for ESG problems.

Source: Author’s Own

Despite the existence of several frameworks, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), the reporting of ESG factors exhibits inconsistencies and challenges in terms of comparability. The aforementioned circumstance poses a challenge for enterprises in establishing performance benchmarks and for stakeholders in conducting comparative analysis of companies’ ESG performance.

Another problem is the requirement for cultural transformation inside organizations. Integrating ESG thinking necessitates a mental shift from considering ESG variables as distinct from business strategy to recognizing their significance as important drivers of long-term value development. This necessitates a culture shift within businesses, which can be difficult to achieve.

The Cost of Overlooking ESG: Why Businesses Must Act Now

Despite these obstacles, businesses cannot afford to overlook ESG issues. Because of the increased demand for openness and accountability from stakeholders such as investors, regulators, and consumers, businesses must adopt a proactive approach to ESG concerns. This demands senior leadership commitment, a clear understanding of the business case for ESG, and a willingness to invest in the resources and tools required to integrate ESG thinking across the business plan.

Adopting a sustainable framework, such as the United Nations Sustainable Development Goals (SDGs), is one approach to incorporating ESG thinking into the business strategy. The SDGs provide a comprehensive and widely recognized framework for sustainable development that addresses a variety of ESG concerns such as climate action, social and economic development, and responsible consumption and production. Companies may ensure that they are tackling a wide variety of ESG concerns and contributing to the attainment of global sustainability goals by aligning their business strategy with the SDGs.

In conclusion, businesses that want to ensure their long-term sustainability and generate value for all stakeholders must incorporate ESG thinking into the whole company plan. To integrate ESG issues into every facet of a company’s operations, top leadership must make a mental change and the organization must be ready to invest in the appropriate tools and procedures. Even though integrating ESG thinking presents obstacles, businesses in today’s market cannot afford to disregard these pressing problems. Companies can build a more sustainable, inventive, and inclusive future for everyone by giving ESG issues priority.